Search intent and buyer decision
Worked example: the cheapest click does not win
This hypothetical example compares two groups promoting the same offer over a comparable observation period. The figures are invented for calculation, not FroggyAds prices or customer results. If you also want broader training, the existing Top Performance Marketing Course resource covers that separate learning task. Here, the decision is which reported measure should guide another media purchase.
Group A spends USD 240 for 1,200 clicks and 12 accepted orders. Group B spends USD 360 for 600 clicks and 24 accepted orders. Apply the same order-acceptance rule to both groups. The table keeps the inputs visible before any percentage or cost figure is used to describe the result.
| Group | Clicks and accepted orders | Media spend |
|---|
| A | 1,200 clicks; 12 accepted orders | USD 240 |
| B | 600 clicks; 24 accepted orders | USD 360 |
| Combined | 1,800 clicks; 36 accepted orders | USD 600 |
The click-to-order rates are 1% for A and 4% for B. The combined rate is 36 ÷ 1,800 × 100 = 2%. Averaging 1% and 4% would give 2.5%, which overstates the combined result because the groups contain different numbers of clicks.
Suppose these accepted orders produce USD 1,800 of attributed revenue. Combined ROAS is 1,800 ÷ 600 = 3. If contribution before advertising is 30% of that revenue, it leaves USD 540 before the USD 600 media cost. The resulting contribution after media is negative USD 60, before fixed overhead. These additional assumptions are hypothetical too.
A has an average CPC of USD 0.20 and an accepted-order CPA of USD 20. B has an average CPC of USD 0.60 and a CPA of USD 15. B therefore has the lower accepted-order media cost despite its dearer clicks. That calculation does not explain why the groups differ or prove the result will continue.
Use FroggyAds to make the next purchase with that distinction in view. Investigate the source, message and destination conditions before assuming a permanent advantage. Keep the outcome definition clear while testing the next allocation. Create your free FroggyAds account