Question: An advertiser generates 50 leads from their lead form. From these leads, they end up with 25 consumers worth an average of $100 each. What's the value of each lead?
- $10
- $50
- $100
- $25
Explanation
Lead value is calculated by dividing total customer value by the number of leads generated. The total value is 25 customers multiplied by $100, which equals $2,500. Dividing $2,500 by 50 leads gives a value of $50 per lead. This value can be used as a conversion value to help Google Ads optimize toward higher-value lead generation.
Why the other options are incorrect
$25 is too low because it does not account for the full customer value generated from the leads.
$100 represents the average value of each customer, not each lead.
$10 does not match the value-per-lead calculation.
Source for verification
https://support.google.com/google-ads/answer/3419241
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