Melvin sees a default CPA of $20 in his Google Display ad campaign, however the actual CPA he's using to measure success is $15. What might account for this $5 difference?
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Correct answer: He's including view-through conversions..
Why this is the answer
The $5 difference between Melvin's observed CPA ($20) and his target CPA ($15) is likely due to including view-through conversions. View-through conversions (VTCs) occur when a user sees a display ad but doesn't click on it, then later converts through another channel or directly. Google Ads often includes these in its reported CPA by default, which can inflate the number of conversions attributed to the display campaign, thereby lowering the calculated CPA. If Melvin's internal tracking doesn't count VTCs, his actual CPA will appear higher. Not including Gmail and YouTube users or current customers would likely increase the CPA, not decrease it. If conversion tracking wasn't set up, he wouldn't have any CPA data.
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