This is a market sizing and unit economics question dressed up as a competitor analysis prompt.
Start by clarifying that the question is about Meta's average cost per new user acquisition, not just ad spend. Then, break down the calculation using publicly available metrics like annual ad spend and net new user additions, and discuss factors that influence this metric.
Pro tip: Acknowledge that Meta doesn't disclose exact CAC, so you'll estimate using proxies like ad spend and user growth, and mention that this metric varies by region and product. This shows you understand data limitations and strategic nuances.
Confirm that 'spend to acquire a single new user' refers to Customer Acquisition Cost (CAC) for Meta's platforms, and specify whether it's global or regional, and for which product (Facebook, Instagram, etc.).
List the necessary inputs: total ad spend (from income statement) and net new user additions (from user metrics reports). Note that Meta reports ad spend but not exact CAC.
Use recent annual reports: e.g., 2023 ad spend ~$120B, net new users ~200M, yielding a rough CAC of $600. Adjust for factors like organic growth and churn.
Explain that this is a simplified estimate; actual CAC varies by region (higher in developed markets), product, and acquisition channel. Also, ad spend includes branding, not just user acquisition.
Connect the metric to Meta's growth strategy: as user growth slows, CAC may rise, impacting profitability. Discuss implications for product decisions like monetization and engagement.
AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.