You're running a campaign and want to assess the ROI. Which conversion column within a given report would show you the ROI for a campaign?

Conversion value/cost

Cost per conversion

Conversion value

Conversion rate

Explanation

Analysis of Correct Answer(s)

The column Conversion value/cost directly calculates your Return on Investment (ROI) from ad spend. This metric is also commonly known as Return on Ad Spend (ROAS).

  • The formula is: Total Conversion Value ÷ Total Cost.
  • It tells you how much revenue (conversion value) you've generated for every dollar you've spent on advertising. For example, a value of 5 means you earned $5 for every $1 spent. This is the most direct measure of profitability and ROI among the choices.

Analysis of Incorrect Options

  • Conversion rate: This metric shows the percentage of clicks that resulted in a conversion (Conversions ÷ Clicks). It measures how efficiently your ads persuade users to act, but not the monetary return.

  • Conversion value: This column shows the total value of your conversions. While this is the "return" part of ROI, it doesn't account for the "investment" (cost), so you cannot assess profitability from this metric alone.

  • Cost per conversion: Also known as Cost Per Acquisition (CPA), this metric shows the average cost to get one conversion (Cost ÷ Conversions). It measures cost-efficiency, not the overall return relative to that cost. A low CPA is good, but without knowing the conversion's value, you can't determine if it was profitable.