An eCommerce app received 500 installs, resulting in $1,000 in revenue. What tCPI should they use to start a new Google App campaign for installs?

500

2

0.5

20


Choose an option to see if it’s correct. Check the explanation below. Learn Smarter, not Harder.

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Explanation: An eCommerce app received 500 installs, resulting in $1,000 in revenue. What tCPI should they use to start a new Google App campaign for installs?


Explanation: The correct tCPI (target cost per install) that the eCommerce app should use to start a new Google App campaign for installs is **2**. tCPI represents the maximum amount an advertiser is willing to pay for each install generated by the campaign. To calculate tCPI, the advertiser divides the total revenue generated by the number of installs. In this case, the eCommerce app received 500 installs, resulting in $1,000 in revenue. By dividing the revenue ($1,000) by the number of installs (500), the tCPI is calculated as $2 per install. Setting the tCPI 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 tCPI of 2 is the appropriate strategy for the eCommerce app to optimize its advertising spend and maximize the profitability of the Google App campaign for installs.
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