When analyzing the relationship between frequency and purchase rate, what actionable insight can you leverage for campaign optimization?
- Setting the frequency cap to maximize purchase rate while limiting waste or over delivery
- Setting the frequency cap to maximize reach
- Removing the frequency cap because more impressions always leads to more conversions
Explanation: The correct answer is **Setting the frequency cap to maximize purchase rate while limiting waste or over delivery** because when analyzing the relationship between frequency and purchase rate, the goal is to find the optimal frequency that maximizes conversions (purchases) without over-delivering ads to the same audience, which could lead to wasted impressions and diminished returns. By adjusting the frequency cap, you can ensure that users are exposed to the campaign enough times to make a purchase, but not so often that they experience ad fatigue or the cost of additional impressions outweighs the benefit. This approach helps balance efficiency with effectiveness, leading to higher purchase rates without unnecessary spending on impressions that do not lead to conversions. The other options, such as setting the frequency cap to maximize reach or removing the frequency cap entirely, may not result in optimal campaign performance, as they either ignore the importance of limiting exposure or fail to account for diminishing returns from over-exposure.