If an advertiser generates 50 leads from their lead form and ends up with 25 consumers worth an average of \$100 each, the value of each lead is \$50.

• $10
• $50
• $100
• $25

The correct answer is: $50

The answer $50 is correct.

Explanation:

To find the value of each lead, you need to calculate the total value generated from the consumers and then divide that by the total number of leads.

• Total value from consumers = Number of consumers × Average value per consumer Total value = 25 consumers × $100/consumer = $2500
• Value per lead = Total value from consumers / Total number of leads Value per lead = $2500 / 50 leads = $50/lead

This calculation helps the advertiser understand the average revenue generated from each initial lead, which is crucial for optimizing lead generation efforts.

Reference:

• While there isn’t a specific Google Ads help page that performs this exact calculation, the concept aligns with how “conversion value” is encouraged to be used for Smart Bidding and understanding ROI.
  • About conversion value – Google Ads Help: https://support.google.com/google-ads/answer/13064207

This page emphasizes assigning values to conversions to optimize for more valuable outcomes, directly relating to calculating the value derived from leads.