The BBVA Compass case discusses a scenario where the display campaigns attributed to conversions to some extent for the search campaigns. The unadjusted cost per application (CPA) for a display network Datran is $238. The conversion rate for search with display ads on Datran is 3.31%. The conversion rate for search without display ads is 1.26%. The unadjusted search CPA is $73. Calculate the adjusted search CPA without Datran. Also, estimate the adjusted CPA for Datran.

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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The BBVA Compass case discusses a scenario where the display campaigns attributed to conversions to some extent for the search campaigns. The unadjusted cost per application (CPA) for a display network Datran is $238. The conversion rate for search with display ads on Datran is 3.31%. The conversion rate for search without display ads is 1.26%. The unadjusted search CPA is $73. Calculate the adjusted search CPA without Datran. Also, estimate the adjusted CPA for Datran. 

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