For a Google App campaign optimizing to a tCPI of $2, what would be the recommended minimum budget?
500
10
20
100
Explanation
Analysis of Correct Answer(s)
The correct answer is $100. This is based on Google's best practice for setting budgets for App campaigns.
- The recommended minimum daily budget for an App campaign is 50 times your target Cost Per Install (tCPI).
- In this scenario, the calculation is: 50 x $2 (tCPI) = $100.
- This budget level is recommended because it provides the machine learning system with enough funds to gather sufficient data during the initial learning phase. A budget of this size allows the campaign to enter enough auctions to find users likely to install the app, leading to faster and more effective optimization.
Analysis of Incorrect Options
- $10 and $20: These budgets are too low (5x and 10x the tCPI, respectively). They would severely restrict the campaign's ability to serve ads and collect the necessary conversion data, likely resulting in poor performance and an inability to exit the learning phase.
- $500: While a larger budget is not necessarily bad, this amount is 250x the tCPI. The question asks for the recommended minimum budget, for which the 50x guideline is the standard answer.