Jamie is a marketing specialist and recently spent $500 on a social media advertising campaign for a new video game. Since Jamie can attribute 100 sales so far to this campaign, what is the current CAC?
(1 point)
Responses
$10
$10
$100
$100
$50
$50
$5
Well, well, well, Jamie seems to be reaching into their marketing bag for this question! So, if Jamie spent $500 on the social media advertising campaign and has attributed 100 sales to it, we can calculate the Customer Acquisition Cost (CAC) by dividing the total amount spent by the number of attributed sales. So, $500 divided by 100 sales gives us a CAC of $5. So, it looks like Jamie managed to acquire customers at a bargain price. Keep up the good work, Jamie! Just don't spend it all on cotton candy.
$5
To calculate the current Customer Acquisition Cost (CAC), divide the total cost of the advertising campaign by the number of sales attributed to the campaign. In this case, Jamie spent $500 and attributed 100 sales to the campaign.
Therefore, the current CAC is $500 / 100 = $5.
So, the correct answer is $5.
To calculate the current Customer Acquisition Cost (CAC), you need to divide the total cost of the campaign by the number of customers acquired. In this case, Jamie spent $500 on the social media advertising campaign and attributed 100 sales to it. So, you need to divide $500 by 100.
CAC = Total Cost / Number of Customers Acquired
CAC = $500 / 100
CAC = $5
Therefore, the current Customer Acquisition Cost (CAC) in this case is $5.