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Customer Acquisition Cost Across Channels

A short online education decision problem. Use the supplied facts, commit to one action, then check your reasoning. Fictional practice; no leaderboard score is recorded.

Online education · cost per acquisition

Two channels ran last month at the same spend. Channel A brought 400 signups at $25 each. Channel B brought 120 signups at $83 each. Both channels convert to paid at the same rate and neither is near saturation.

Given factScenario data
Channel spendSame for both last month
Channel A400 signups at $25 each
Channel B120 signups at $83 each
Paid conversion rateSame for both
SaturationNeither channel near saturation
How should you allocate next month's budget?

Choose an action, then lock it in to reveal the reasoning. This is untimed practice.

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How to Allocate a Limited Budget

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