Youspend$1500 per new user on day 1 of your campaign.You have a goal of hitting10%ROASbyday5.How much do you need to generate from each user by the end of day 5 to achieve your RO AS goal?
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Correct answer: $150.
Why this is the answer
ROAS (Return on Ad Spend) is calculated as (Revenue / Ad Spend) 100%. A goal of 10% ROAS means that for every dollar spent, you need to generate $0.10 in revenue. In this scenario, you spend $1500 per new user. To achieve a 10% ROAS, you need to generate 10% of $1500 in revenue from each user. Calculation: Revenue needed = Ad Spend (ROAS goal / 100) Revenue needed = $1500 (10 / 100) Revenue needed = $1500 0.10 Revenue needed = $150 Therefore, you need to generate $150 from each user by the end of day 5 to achieve your 10% ROAS goal. $100 is incorrect because it represents a 6.67% ROAS ($100/$1500). $15 is incorrect as it represents a 1% ROAS ($15/$1500).
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