Course Solutions Uncategorized Promote Sales Platform Allows Post Advertisement 20 000 Platform User Base 500 000 Individ Q34299901

Promote Sales Platform Allows Post Advertisement 20 000 Platform User Base 500 000 Individ Q34299901

June 27, 2024| admin| 0 Comment| 6:24 pm

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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

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Promote Sales Platform Allows Post Advertisement 20 000 Platform User Base 500 000 Individ Q34299901

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