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 through a lead form and successfully converts 25 of them into customers, each generating an average value of $100, then each lead is worth $50.

• $10
• $50
• $100
• $25

Explanation :

To calculate the value of each lead, first determine the total revenue generated from the converted consumers, then divide this amount by the total number of leads.

Total revenue from consumers = Number of consumers × Average value per consumer
Total revenue = 25 consumers × $100 per consumer = $2,500

Value per lead = Total revenue ÷ Total number of leads
Value per lead = $2,500 ÷ 50 leads = $50 per lead

This calculation helps advertisers understand how much revenue, on average, each lead contributes, making it easier to evaluate and improve the effectiveness of lead generation campaigns.