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AQA 7138 · Year 12 · Paper 1 · 3.1.3

Digital marketing and AI: SEO vs PPC, cookies, CRM and the numbers

The new AQA course asks you to judge digital marketing, not just describe it. Here is the theory, the calculations and three UK cases from 2025 and 2026.

By Jay Fanimo · 6 min read · Updated 31 October 2026 · For Year 12 students on AQA A-Level Business 7138, and their parents and teachers

Short answer: digital marketing and AI in AQA A-Level Business 7138 covers how firms win customers online: SEO vs PPC, cookies, CRM and data analytics. You measure results with click-through and conversion rates, and calculate return on marketing spend. Then you judge whether the technology really makes the business more competitive [1].

What the 7138 specification asks

This topic sits in 3.1.3 Marketing, which is examined on Paper 1. In summary, AQA wants you to understand [1]:

Most of this is new. SEO, PPC, cookies, CRM, AI in marketing and return on marketing spend do not appear in the old 7132 course. Dynamic pricing was already there.

SEO vs PPC: the core comparison

SEO (search engine optimisation) means improving a website so it ranks higher in the free, "organic" search results. PPC (pay-per-click) means buying adverts, usually above those results, and paying each time someone clicks.

SEOPPC
Cost per clickNone, but content and skills cost moneyPaid on every click
SpeedSlow: often months to rankFast: live within hours
ControlLow: the search engine decides rankingsHigh: choose keywords, budget, audience
When spending stopsTraffic usually continues for a whileTraffic stops at once
Best forLong-term, low-cost visibilityLaunches, sales events, testing

The exam rarely wants "one is better". It wants you to say which fits this business, now. A new firm with no ranking needs PPC to be seen. An established firm with strong content may cut PPC and save money.

Cookies: data, consent and the law

A cookie is a small file a website stores on your device. Cookies let firms remember baskets, count visitors and track people for targeted adverts.

In the UK, the Privacy and Electronic Communications Regulations (PECR) control this. Unless an exception applies, a site must explain its cookies and get consent first. Refusing must be as easy as accepting [2]. The Information Commissioner's Office (ICO), the UK data regulator, lists five exceptions, such as cookies that are strictly necessary or used only for basic visitor statistics. Advertising cookies always need consent [3].

The ICO enforces this. On 4 December 2025 it reported that 979 of the UK's top 1,000 websites now passed its cookie checks. 564 of them improved only after ICO contact [4]. For marketers, the trade-off is clear: every visitor who rejects advertising cookies is one the firm cannot track or target.

CRM and data analytics

CRM (customer relationship management) is the system a firm uses to record every contact with each customer. It supports four jobs:

Data analytics turns this record into decisions. Firms segment customers into groups, personalise offers, predict what people will buy, and use dynamic pricing, where prices change with demand. AI makes this faster and cheaper at scale.

Tesco is a strong UK example. In its results for the 26 weeks to 29 August 2026, Tesco said it rolled out "Your Clubcard Prices", personalised loyalty prices, to around 2.5 million customers. It also reported online sales of £3.7bn, up 8.4%, and 17% growth in active advertisers at Tesco Media [6]. That last figure shows customer data can become a second income stream.

Dynamic pricing: the Oasis case

Dynamic pricing can raise revenue, but it carries risk to trust. In September 2024 the Competition and Markets Authority (CMA), the UK competition regulator, investigated Ticketmaster's sale of Oasis tickets. Its update of 25 September 2025 found fans were not told standing tickets came at two prices [5].

The CMA said it found no evidence that prices moved in real time with demand. The anger came from poor information, not the algorithm. Ticketmaster agreed, without admitting wrongdoing, to show price ranges and give 24 hours' notice of tiered pricing [5].

Measuring success: a worked calculation

The numbers below are ILLUSTRATIVE. They are invented to show the method and do not describe any real business.

ILLUSTRATIVE dataCampaign A: PPC ads to new customersCampaign B: CRM email to past customers
Impressions (times seen)40,00010,000
Clicks1,200600
Click-through rate = clicks ÷ impressions × 1003%6%
Sales (orders)4860
Conversion rate = sales ÷ clicks × 1004%10%
Revenue from campaign48 × £60 = £2,88060 × £50 = £3,000
Marketing spend1,200 × £0.80 = £960£400
Return on marketing spend = (revenue − spend) ÷ spend × 100(£2,880 − £960) ÷ £960 = 200%(£3,000 − £400) ÷ £400 = 650%

Some textbooks show the simpler ratio of revenue ÷ spend instead (3:1 for A, 7.5:1 for B). Use the version your course materials give, and always show your working.

Campaign B looks far better, so retention seems cheaper than acquisition. But B can only reach people who already buy. A business that never acquires new customers will shrink. Also, revenue is not profit: neither figure deducts the cost of the goods sold.

SEOImproving a website so it ranks higher in free search results.
PPCPaid search or social adverts where the firm pays for each click.
CookieA small file stored on a user's device that lets a site remember or track them.
CRMA system for recording and managing every interaction with customers and leads.
Conversion rateThe percentage of visitors or clicks that become sales.
Return on marketing spendThe gain from a campaign compared with what it cost, as a percentage or ratio.
Exam practice: Assess (9 marks)

Practice question, in our own words: Assess whether a small UK online clothing retailer should move most of its marketing budget from PPC to SEO.

Analysis: SEO has no cost per click, so once the site ranks, each extra visitor costs almost nothing. Therefore the cost of each sale falls over time, which raises return on marketing spend and lets the firm price more competitively.

Evaluation: However, SEO is slow and rankings are outside the firm's control. A small retailer with weak cash flow may not survive months of lower traffic. So the switch makes sense only if the firm can afford the wait. A gradual shift, cutting PPC as organic traffic grows, is likely to be safer than a sudden move.

Notice the structure. The analysis is a chain joined by "so" and "therefore". The evaluation names the condition, cash flow, and ends with a judgement on this business.

Practise the calculations

Our free Business pack has more worked numbers and practice questions with UK businesses.

Get the free pack

For timed practice on this topic, try "Digital Marketing: SEO vs PPC" on the CC Business platform, Year 12 track. Most tutors teach the subject. We teach the criterion.