How is the conversion value per cost calculated?

• A. Total cost of all ad interactions / Total conversion value
• B. Total conversion value minus total cost
• C. Total clicks / Total conversions
• D. Total conversion value / Total cost of all ad interactions

Answer: (D)

Measuring how efficiently ad spend turns into value is about value per cost. The conversion value per cost expresses how much conversion value you earn for every dollar spent, essentially the ROAS. To compute it, take the total conversion value (the revenue or value from conversions) and divide by the total cost of all ad interactions. The given formula directly captures this relationship. The other options misrepresent the concept: dividing cost by value gives the inverse (cost per unit of value) rather than value per cost; subtracting cost from value ignores spend efficiency and yields a net amount rather than a rate; and dividing clicks by conversions reflects click efficiency or conversion rate, not how much value you get per dollar spent.