With a churn rate of $35\%,$ customer acquisition remains an important marketing priority for Camp Plus. One of the many databases Camp Plus has is its marketing acquisition database, from which the average acquisition cost by channel was calculated. Camp Plus has a limited marketing budget and wants to spend its resources wisely.

Currently, $20\%$ of its customers are acquired through direct mail, $10\%$ from social media marketing, $40\%$ from banner ads, and $30\%$ from search engine marketing.

What strategy do you recommend for Camp Plus's new customer acquisition moving forward?

Acquisition Cost by Channel

Select an option from the choices below and click Submit.

More data: Recommend that Camp Plus complete further analysis to determine if customer profitability varies by acquisition type.

Banner ads: Spend the majority of the budget on banner ads because they are the largest source of new customers.

Search engine: Spend the majority of the budget on search engine marketing because it is the least expensive source of new customers.