A large coffee brand wants to run a conversion campaign with a goal of 5000 purchases during the winter season. Their goal is to achieve an average cost of $15 per Add to Cart event and $25 per Checkout event. What estimated budget would closely align with the coffee brand’s goal? (select one)
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Correct answer: $125,000.
Why this is the answer
The selected answer is correct because the estimated budget is derived from the brand's primary goal of 5000 purchases (Checkout events) multiplied by their target cost of $25 per Checkout event. By applying the basic formula for campaign budgeting ( 5,000×$25 5,000×$25 ), the required investment to achieve the conversion volume at the specified efficiency is exactly $125,000. While the advertiser also tracks the "Add to Cart" event at a $15 target, the total campaign budget must be anchored to the final conversion goal of 5000 purchases to ensure the campaign is sufficiently funded to meet its primary objective during the winter season.
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