Question: Ben is currently managing a campaign that has a total investment of $7,000, generates 1,400 conversions, and has a CPA (cost-per-acquisition) of $5. Ben needs to sell excess inventory. To meet this goal, he’s willing to increase his CPA and campaign investment. Which of the following plans, built in the Performance Planner, will assist Ben in achieving his marketing goal of selling excess inventory?
- An investment of $9,600 to generate 1,600 conversions with a CPA of $6
- An investment of $9,800 to generate 1,400 conversions and a CPA of $7
- An investment of $9,100 to generate 1,300 conversions and a CPA of $7
- An investment of $8,400 to generate 1,400 conversions and a CPA of $6
The correct answer is: An investment of $9,600 to generate 1,600 conversions with a CPA of $6
Explanation: By increasing his campaign investment from $7,000 to $9,600, Ben can generate 1,600 conversions, which is an improvement over the 1,400 conversions he achieved before.
The new Cost Per Acquisition (CPA) is $6, slightly higher than his current CPA of $5, showing that Ben is willing to pay a bit more per conversion in order to clear out inventory. This plan reflects a smart balance between higher investment and slightly increased CPA to boost total conversions.
Using the Performance Planner, Ben can clearly see how adjusting his budget and bidding strategy can help him reach his goal. The plan helps him make data-driven decisions, maximize conversions, and improve his return on investment (ROI).
Overall, investing $9,600 to get 1,600 conversions at a CPA of $6 is the most suitable and effective strategy for Ben to meet his marketing objective of selling excess inventory.