A marketer at an agency works on app campaigns for a food delivery company. They are running a campaign to get new users. Which one of the following is the optimal bidding strategy for the client to meet their objective?
- CPM
- CPC
- tCPI
- tROAS
Explanation:
The optimal bidding strategy for the food delivery company’s campaign to acquire new users is tCPI (target cost per install). tCPI allows the advertiser to set a target cost they are willing to pay for each app installation. This aligns perfectly with the campaign objective of acquiring new users, as the company only pays when a user installs their app. With tCPI, the advertiser can optimize their bids to achieve the desired number of app installs within their specified budget, ensuring efficient spending while driving user acquisition. Unlike other bidding strategies like tROAS (target return on ad spend), which focuses on maximizing the return on investment, tCPI is specifically tailored to the goal of acquiring new users, making it the optimal choice for the food delivery company’s campaign objective.