Table 1.1: Marketing data from Product B in a month
Day
Budget
Impressions
Clicks
Leads
Reservations
1
$1.86
26
7
1
0
2
$4.58
47
29
4
0
3
$10.14
431
55
5
0
4
$15.45
477
60
7
0
5
$16.28
520
69
11
0
6
$19.59
581
73
11
0
7
$20.95
824
75
12
0
8
$25.45
828
82
14
1
9
$26.70
1239
86
14
1
10
$26.91
1321
100
15
1
11
$27.19
1737
113
16
1
12
$36.04
1747
121
20
1
13
$41.32
1789
152
21
1
14
$43.45
2713
155
22
1
15
$54.99
2844
169
24
1
16
$57.53
3107
175
27
1
17
$60.19
3243
178
27
1
18
$66.38
3289
194
27
1
19
$71.04
3381
199
29
1
20
$71.17
3399
200
33
2
21
$72.48
3719
201
33
2
22
$75.51
3995
202
34
2
23
$76.12
4187
213
35
2
24
$77.62
4495
219
36
2
25
$81.81
4544
222
36
2
26
$85.57
4596
230
36
2
27
$93.84
4596
245
37
2
28
$102.04
4603
261
37
2
29
$105.24
4613
275
37
2
30
$110.73
4737
299
38
2
Analysis
To validate your product using these metrics, you must perform a funnel-down analysis that compares your real-world performance against your target benchmarks. You start at the top of the funnel by assessing creative resonance (CTR) and market cost (CPM), then move to the middle to evaluate landing page conversion (L-CR), and finally calculate the "Bottom Line" by applying your pessimistic, realistic, and optimistic purchase probabilities to your Lead and Reservation totals. Validation occurs when the Realistic eROAS (Estimated Return on Ad Spend) is calculated by multiplying your total projected conversions by the product price and dividing it by the Ad Spend; if that figure exceeds 200%, the product is quantitatively "validated."
In this case, the validation failed because of the calculation results