After setting up conversion tracking, you want to add a column for conversion value per cost. How would that be calculated?
- It would be calculated by dividing the total conversion value by the total cost of all ad interactions.
- It would be calculated by dividing the total conversion value by the number in the conversions column.
- It would be calculated by dividing the total cost by the number in the conversions column.
- It would be calculated by dividing the number in the conversions column by the total eligible interactions.
Explanation:
The correct answer is: **’It would be calculated by dividing the total conversion value by the total cost of all ad interactions.’** Calculating conversion value per cost provides insights into the efficiency and profitability of advertising campaigns. By dividing the total conversion value (the revenue generated from conversions) by the total cost of all ad interactions, advertisers can determine how much revenue they are generating for every unit of cost spent on advertising. This metric helps assess the return on investment (ROI) of advertising campaigns, allowing advertisers to optimize their budget allocation and bidding strategies to maximize profitability. A higher conversion value per cost indicates better campaign performance, while a lower value suggests that adjustments may be needed to improve efficiency and effectiveness.