A marketer at an agency works on app campaigns for a food delivery company. They are running a campaign to get new users. Which one of the following is the optimal bidding strategy for the client to meet their objective?
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Correct answer: tCPI.
Why this is the answer
tCPI (target Cost Per Install) is the optimal bidding strategy for acquiring new app users because it directly optimizes for installations at a target cost you define. This aligns perfectly with the objective of getting new users. CPM (Cost Per Mille/thousand impressions) focuses on impressions, not user acquisition, and doesn't guarantee installs. CPC (Cost Per Click) optimizes for clicks, which are a step before an install and don't guarantee user acquisition. tROAS (target Return On Ad Spend) is used for optimizing for in-app actions with revenue, which is more suitable for re-engagement or maximizing lifetime value from existing users, not initial user acquisition.
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