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?
If an advertiser collects 50 leads and 25 of them convert into customers with an average value of $100 each, then each lead is worth $50.
- $10
- $50
- $100
- $25
Explanation:
To determine the value of each lead, first calculate the total revenue generated by the converted consumers and then divide that amount by the total number of leads. In this case, 25 consumers each generate $100, resulting in a total value of $2,500. Dividing this total by 50 leads gives a value of $50 per lead. This calculation helps advertisers understand the average revenue contributed by each lead and supports better optimization of lead generation strategies.
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