1. Campaign A produces leads at £42 CPL and 8% become customers. Campaign B produces leads at £70 CPL and 20% become customers. Which has the lower implied CAC?

Campaign A, because its CPL is substantially lower. Both have the same CAC. Campaign B, because its higher lead-to-customer rate more than compensates for the higher CPL. CAC cannot be estimated without impression data.

Campaign A CAC is £42 ÷ 8% = £525. Campaign B CAC is £70 ÷ 20% = £350.

2. Customer contribution before media is £2,200 and the business requires £1,300 contribution after acquisition. If 10% of leads become customers, what is the target allowable CPL?

£130 £90 £220 £900

Target CAC is £2,200 − £1,300 = £900. At a 10% lead-to-customer rate, allowable CPL is £90.

3. Which THREE can cause a low-CPL campaign to produce poor commercial results?

A low qualification rate. A higher-than-average click-through rate. Weak progression from qualified lead to customer. A high impression share by itself. Large volumes of unsuitable enquiries that consume sales capacity.

Cheap leads can be commercially expensive when quality, downstream conversion or processing cost is poor.

4. CPL is unchanged. Qualification remains 45% and opportunity creation is stable, but opportunity-to-customer close rate falls from 30% to 14%. What should be investigated first?

Google Ads CPC. Search impression share. Form conversion rate. Sales close rate, pricing, proposition or another factor affecting opportunity conversion.

The deterioration occurs after opportunity creation. Changing Google Ads first would address the wrong part of the funnel.

5. A booked consultation becomes a customer 24% of the time. A generic form becomes a customer 6% of the time. Expected customer contribution is £2,000 for both. What are their simple expected lead values?

£24 and £6. £480 and £120. £2,000 and £2,000. £833 and £333.

£2,000 × 24% = £480. £2,000 × 6% = £120.

6. Which THREE statements belong in a strong lead-generation economics model?

Raw lead volume should normally replace customer acquisition cost as the main commercial metric. Qualification rate changes the commercial value of a raw lead. Sales close rate can materially alter the CPL a business can afford. Customer contribution should influence acceptable acquisition cost. Industry-average CPL should determine the final target.

Qualification, sales conversion and customer economics determine what a raw Google Ads lead is actually worth.

7. Google Ads produces 100 leads at £60 each. 40% qualify and 25% of qualified leads become customers. What is CAC?

£600 £240 £150 £1,500

40 qualified leads × 25% = 10 customers. Spend is £6,000, so CAC is £600.

8. Broadening targeting reduces CPL from £90 to £55 while qualification falls from 55% to 20%. What is the strongest next step?

Scale immediately because CPL improved. Optimise exclusively toward even lower CPL. Compare cost per qualified lead, customer conversion and CAC before deciding whether the broader traffic improved economics. Remove conversion tracking because lead quality is variable.

The lower CPL may be misleading because the lead mix changed materially.

9. Every form fill is currently treated as equally valuable. CRM data shows one lead type closes at five times the rate of another. What is the strategic problem?

Google Ads cannot record both conversion types. The lower-converting form should automatically be removed. Conversion values are only relevant to ecommerce. Google is receiving a signal that treats materially different commercial outcomes as equivalent.

When different lead types have different expected customer values, identical signals can encourage the wrong optimisation behaviour.

10. Which statement best summarises the module?

The primary objective of specialist lead generation is to achieve the lowest possible CPL. Google Ads lead generation should be evaluated through the full path from enquiry to qualified customer and profitable contribution. Once qualification data exists, media efficiency no longer matters. Sales performance should be kept separate from Google Ads analysis.

The central principle is to optimise towards profitable customer outcomes rather than raw conversion volume.