Q: 9
A beauty brand notices an increase in consumer demand for organic beauty products and wants to
increase sales with its current budget. Its media spend is across four media channels with equal
budget allocation. The company buys two target audiences. One audience is a demographic target
audience, ages 25-35. The other audience is a behavioral target audience of people who have
expressed interest in organic beauty products. This beauty brand gives credit for a conversion when
one of these high-intent consumers is served an ad and clicks the ad.
The analyst recommends shifting the total budget to the demographic target audience. What is a
possible reason for this recommendation?
Options
Discussion
Option A makes sense based on CPA logic. Nice clear scenario, saw something similar on a practice exam.
I think D , had something like this in a mock and picked it. Pretty sure that's what they were hinting at.
That only checks out if the demographic group really has a lower cost per *additional* conversion, not just any metric like CPC or reach. Sometimes people assume behavioral always converts better, but that's not always true depending on the market and creative. So A fits but only if those incremental conversions are indeed cheaper for that audience.
Probably A here. If shifting budget to the demographic group, it's likely because the cost per additional conversion is lower compared to the behavioral group. Makes sense if they're optimizing for conversions with a fixed spend. Agree?
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