If a campaign has a target CPA of $50 and a budget of $5,000, how many conversions would be expected?

• A. 50 conversions
• B. 100 conversions
• C. 150 conversions
• D. 200 conversions

Answer: (B)

The key idea is to estimate conversions by dividing the total budget by the target cost per conversion. If you’re aiming to spend the entire budget at the target CPA, the number of conversions you can expect equals Budget ÷ Target CPA. Here, 5,000 divided by 50 equals 100, so you would expect about 100 conversions if every conversion costs exactly $50. This reflects the plan to allocate the budget to achieve that CPA. The other options would require spending more or less than the budget at the target CPA (for example, 50 conversions would cost about $2,500; 150 would cost about $7,500; 200 would cost about $10,000), which doesn’t fit the given budget.