Originally Posted by

**Spider**
I would expect Dan to pop in here and say that neither impressions nor clicks are important - the only thing that matters is conversions. And I would have to agree with him.

Example -

If the rate for impressions is 10¢ per impression, the cost of 1,000 impressions is $100. It doesn't matter how many clicks you get, the cost is still $100.

If the rate for clicks is $10 per click, the cost of 10 clicks is $100. It doesn't matter how many impressions it takes to get them, the cost is still $100.

However, neither of these indicate the number of sales you will get and the number of sales is more important. Even more than this, the number of sales is not as important as the total amount of the sales for the amount spent.

Assuming that the objective of an ad is to get sales, the "best" ad will be the one that sells the most in total dollars on the least amount of cost. IOW - the highest ROI - return on investment.

Thus, one must analyze what has happened with your ads in the past. If your previous ads of this type cost you $200 and from that expenditure you got 2,300 impressions, from which you got 29 clicks, from which you made 15 sales that produced $5,700 in income - then ....

the value of each impression was $2.48

the value of each click was $196.55, and

the value of each conversion (sale) was $380

Had you paid by impressions, at the rate mentioned above, you would have paid $230.00

Had you paid by clicks, at the rate mentioned above, you would have paid $290.00

Therefore, the ROI would likely be better when paying by impressions -- for the same type of ad to the same market.

Did I do my sums right?!

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