Digital ads work phenomenally well, provided you calculate the steps. Let’s assume you start with a $100,000 media budget. Cold hard logic suggests that an average click-through-rate of .07 percent will yield roughly 350 new sales gives you a $285.71 cost per acquisition. To see if digital advertising works, don’t bemoan response rates. Simply ask: Am I making more than $285 per sale? If you are selling razor packages for $10, well, no, digital advertising doesn’t work .But if you sell leather jackets at $1,000, you’re cool. ROI is 250 percent. In other words, for digital advertising to work, you need a price point well above the digital acquisition cost.