After investing $2000 into a Google Display ads campaign, a company sees 80 click-through conversions and 20 view-through conversions. Using view-through conversions to get a sense of its full value, what’s the average CPA of the company’s Display campaign?
- $25
- $40
- $20
- $100
Explanation:
To determine the average CPA (Cost Per Acquisition), we need to first determine the total number of conversions
and then divide the total investment by that number.
Given:
– Click-through conversions = 80
– View-through conversions = 20
– Total investment = $2000
Total conversions = Click-through conversions + View-through conversions
Total conversions = 80 + 20 = 100
Average CPA = Total investment / Total conversions
Average CPA = $2000 / 100 = $20
However, if we’re using view-through conversions to get a sense of its full value, then we would calculate as follows:
Average CPA considering only click-through conversions = Total investment / Click-through conversionsAverage CPA = $2000 /
80 = $25 So, the correct answer is $25.