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?

Analysis of Correct Answer(s)

• The correct answer is $100. This question tests your understanding of conversion value. The value is assigned to the successful outcome or conversion, not the initial lead itself.
• The problem states that a lead that becomes a consumer is worth an average of $100. This means the value of the conversion event (a lead turning into a paying customer) is $100. When setting up conversion tracking, you would assign a value of $100 to this specific action.

Analysis of Incorrect Options

• $50: This is a very common distractor. This value represents the average value per lead, a different but related metric. It is calculated by dividing the total value generated by the total number of leads:
  • Total Value: 25 consumers × $100 = $2,500
  • Total Leads: 50
  • Average Value Per Lead: $2,500 ÷ 50 = $50
• While $50 is the average expected return for every lead form submission, it is not the value of the actual conversion as defined in the question.
• $25 and $10: These figures are incorrect and do not correspond to a logical calculation based on the information provided.