Question - Social Media Scenario

by cgj1981 3 replies
Hi All,
Was asked the question below and I am not exactly sure what the question is even asking. Any ideas are much appreciated?
Thanks,
C

XYZ, a facebook game, currently uses 2 third-party click exchange providers. Assume that for every 10 clicks generated by XYZ users, XYZ’s app will in turn receive 9 click credits, which are automatically redeemed on other apps within the click exchange network. Using sample data, create a model forecasting click exchanges’ contribution to new installs on a monthly basis. In other words, given the pre-click exchange acquisition projections below, show how many additional installs XYZ will acquire by adding two click exchange partners. You’ll need to make a variety of assumptions to build the model so make sure you that you clearly highlight those assumptions and explain why you believe they are reasonable.

New Acquisitions - Pre click-exchange:
Month 1: 5,000
Month 2: 10,000
Month 3: 20,000
Month 4: 40,000
#main internet marketing discussion forum #media #question #scenario #social
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  • Profile picture of the author TheRedPill
    Looks like someone is trying to have their homework done for them. lol
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  • Profile picture of the author cgj1981
    Yes so any help would be great mainly just trying to make sense of the question itself
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  • Profile picture of the author ibacklinkpro
    So XYZ users click on an ad in this XYZ game. Every time there are 10 of these clicks, an ad for this XYZ game will run inside of other games 9 times. So if XYZ game in month one gets 5000 new users and they begin to click on this ad, how many credits will they receive, or actually how many new sign ups will they receive. The simple answer would be (5000 / 10) * 9 but then he says you have to make assumptions. These assumptions are 1) how many of those 5000 will actually click on the ad even once 2) how many of this 5000 will click on the ad more than once 3) How many of the credit generating ads actually get people who not only click on the ad but actually install it (some people may click on the ad, check out the game, but choose not to sign up)
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