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The two bar graphs show the results of five test advertising campaigns conducted by a marketing agency. The first graph displays the estimated Lifetime Value per customer (total revenue expected from a customer, in USD), and the second graph displays the Acquisition Cost per customer (cost to acquire one customer, in USD).
From each drop-down menu, select the option that creates the most accurate statement based on the information provided.
If each campaign acquired the same number of customers, the campaign with the highest ratio of Total Lifetime Value to Total Acquisition Cost is , with an approximate value of .
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The two bar graphs show the results of five test advertising campaigns conducted by a marketing agency. The first graph displays the estimated Lifetime Value per customer (total revenue expected from a customer, in USD), and the second graph displays the Acquisition Cost per customer (cost to acquire one customer, in USD).
From each drop-down menu, select the option that creates the most accurate statement based on the information provided.
If each campaign acquired the same number of customers, the campaign with the highest ratio of Total Lifetime Value to Total Acquisition Cost is , with an approximate value of .
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Since each campaign acquired the same number of customers, the ratio of total Lifetime Value to total Acquisition Cost will be the same as the ratio per customer. So, we can compare the per-customer values directly to find the highest overall ratio.
Campaign A: Lifetime Value ≈ 110 USD, Acquisition Cost ≈ 20 USD Ratio = 110 / 20 = 5.5
Campaign B: Lifetime Value ≈ 160 USD, Acquisition Cost ≈ 60 USD Ratio = 160 / 60 ≈ 2.7
Campaign C: Lifetime Value ≈ 50 USD, Acquisition Cost ≈ 30 USD Ratio = 50 / 30 ≈ 1.7
Campaign D: Lifetime Value ≈ 325 USD, Acquisition Cost ≈ 100 USD Ratio = 325 / 100 ≈ 3.3
Campaign E: Lifetime Value ≈ 200 USD, Acquisition Cost ≈ 150 USD Ratio = 200 / 150 ≈ 1.3
The campaign with the highest ratio is Campaign A, with an approximate value of 5.5.