20 Essential formulas MUST be known by
digital marketing
managers to
enhance any digital campaign and achieved the campaign objective successfully.
CTR(Click through rate) = Clicks/Impressions X 100
CPM = Cost/1000 impressions
CPA= Total cost(per acquisition)/total no. of leads
Conversion rate = Conversion/Clicks
Total cost = Click * CPC
Adrank = CPC * (Quality Score + Ad-Extension)
Quality Score = depends on – CTR, Landing page, Ad relevance
Actual QS = Sum( (sum of QS * impression)/ sum of impressions)
Actual CPC = (Ad rank below competitor/Quality Score of your) +0.01
ROAS (Return on ad spend) = Revenue(or conversion value)/ad spends
ROI = (Conversion- cost)/cost of ad spend
Cost = conversion rate * profit margin
Max CPC = (Avg Conversion Value/desired ROAS)*conversion rate
Max CPC = (total conversion/clicks)/desired ROAS
Ad CTR = Clicks / Ad impressions
Ad request CTR = Clicks / Ad requests
Ad request RPM = (Estimated earnings / Number of ad requests) * 1000
Ad RPM = (Estimated earnings / Ad impressions) * 1000
CTR = Clicks / Impressions
Coverage = (Ad requests that returned ads / total ad requests) * 100