A ne Commerce app received 500 installs,resulting in$1,000 in revenue.What tCP I should they use to start a new Google App campaign for installs?
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Correct answer: 2.
Why this is the answer
The correct tCP I(target cost per install)that the e Commerce app should use to start a new Google App campaign for installs is 2.tCP I represents the maximum amount an advertiser is willing to pay for each install generated by the campaign.To calculate tCP I,the advertiser divides the total revenue generated by the number of installs.Inthiscase,the e Commerce app received 500 installs,resulting in$1,000 in revenue.By dividing the revenue($1,000)by the number of installs(500),thetCPIis calculated as$2 per install.Setting the tCP I at$2 ensures that the cost of acquiring each new install does not exceed the revenue generated by those installs,thus maintaining a profitable return on investment for the app campaign.Therefore,using a tCP I of 2 is the appropriate strategy for the e Commerce app to optimize its advertising spend and maximize the profitability of the Google App campaign for installs.
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