If a keyword has a 2% conversion rate, and the value of a conversion is $100, what is the value per click of that keyword?
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Correct answer: $0.02.
Why this is the answer
To calculate the value per click, you multiply the conversion rate by the value of a conversion. In this case, the conversion rate is 2%, which is 0.02 as a decimal. The value of a conversion is $100. Therefore, the value per click is 0.02 $100 = $2.00. The option $0.02 would be correct if the conversion value was $1. The option $0.2 would be correct if the conversion value was $10. The option $0.002 is incorrect as it represents 0.2% of $1.
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