After investing$2000 into a Google Display ads campaign,a company sees 80 click-through conversions and20view-through conversions.Usingview-through conversions to get a sense of its full value,what's the average CPA of the company's Display campaign?
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Correct answer: $25.
Why this is the answer
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 AverageCPA=Total investment/Total conversions AverageCPA=$2000/100=$20 However,ifwe'reusing 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 conversions Average CPA=$2000/ 80=$25So,the correct answer is**$25**.
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