Based on the data below, which is the most effective advertising campaign?

Campaign 1 because it has a greater return

Campaign 1 because it drove more leads

Campaign 2 because it has a greater return

Campaign 2 because it drove more leads


Choose an option to see if it’s correct. Check the explanation below.

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Explanation: Based on the data below, which is the most effective advertising campaign?


Explanation: The most effective advertising campaign can be determined by evaluating its return on investment (ROI), which measures the profitability of an investment relative to its cost. In this scenario, **Campaign 1** emerges as the most effective because it has a greater return compared to Campaign 2. ROI is calculated by dividing the net profit generated from the campaign by the cost of the campaign, expressed as a percentage. Campaign 1's ROI is 20% ($2,000 profit / $10,000 cost * 100), whereas Campaign 2's ROI is only 10% ($1,000 profit / $10,000 cost * 100). A higher ROI indicates that Campaign 1 yielded a better return relative to its cost, making it the more efficient and effective advertising investment. While Campaign 2 drove more leads, the ultimate measure of effectiveness lies in the campaign's ability to generate profitable outcomes, which is captured by the ROI metric. Therefore, Campaign 1 stands out as the most effective advertising campaign based on its superior return on investment.
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