To promote sales, the platform allows you to post advertisementfor $20,000. The platform has a user base of about 500,000individuals, about 80% are active. Non-active users will not seeyour ad. Based on prior statistics, about 10% of those who learnabout your game will buy it. What is the average cost foradvertising in this case? That is, per customer cost ofadvertising.
Expert Answer
Average cost of advertising= Cost of the post/ Total users whoare able to view the ad= 20000/(500000*0.8)= $0.05