You spend $1500 per new user on day 1 of your campaign. You have a goal of hitting 10% ROAS by day 5. How much do you need to generate from each user by the end of day 5 to achieve your ROAS goal?
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Correct answer: $150.
Why this is the answer
Return on Ad Spend (ROAS) is calculated by dividing revenue by ad spend. A 10% ROAS means you need to earn back 10% of what you spent. Since you spent $1,500 to acquire each new user, generating 10% of that amount equals $150 in revenue per user by the end of day 5, making $150 the correct answer.
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