By Fatskills Exam Guides Team — the exam nerds behind 28,500+ quizzes and 2.1M practice questions across 500+ global exams.
Social?media advertising is the practice of paying platforms like Facebook/Instagram, LinkedIn, and TikTok to show your creative to a precisely?targeted audience. It sits in the consideration-conversion stages of the funnel, turning browsers into leads or buyers. Example: A SaaS startup runs a LinkedIn Lead?Gen form to capture CTO?level contacts, while an e?commerce brand uses TikTok video ads to retarget shoppers who abandoned their carts and pushes them back to checkout.
Mistake: Targeting too broad (e.g., “All adults 18?65”). Correction: Layer interests, behaviors, and custom audiences to narrow the pool; a tighter audience raises relevance and lowers CPC.
Mistake: Ignoring the pixel and relying only on platform?reported conversions. Correction: Pair the pixel with GA4 to capture cross?device conversions and get accurate attribution.
Mistake: Running the same creative for weeks without refresh. Correction: Rotate assets every 5?7?days; ad fatigue shows as rising CPM and falling CTR.
Mistake: Setting a single, high daily budget and letting the algorithm spend it all on one ad set. Correction: Use CBO with multiple ad sets or manually cap budgets to test creative before scaling.
Mistake: Forgetting to enable conversion optimization (e.g., “Landing Page Views” instead of “Purchases”). Correction: Choose the event that matches your business goal; the platform learns faster when optimizing for the final action.
If your CPC is $1.20 and your conversion rate is 4?%, what is your CAC? Answer: $30.?Explanation: CAC?=?CPC ÷ Conversion Rate-$1.20 ÷ 0.04?=?$30.
Your TikTok campaign spent $2,500, generated $12,000 in revenue. What is the ROAS? Answer: 4.8?×? (or 480?%).?Explanation: ROAS?=?Revenue ÷ Spend-$12,000 ÷ $2,500?=?4.8.
A LinkedIn ad set has 150 clicks, 12,000 impressions, and a CPM of $7. What is the total spend? Answer: $84.?Explanation: CPM?=?$7-Spend?=?($7 × 12,000) / 1,000?=?$84.
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