Pay Per Click Basic Formula <ul><li>Author: Jagadish Thaker </li></ul><ul><li>Face Book:  Jagadish.thaker </li></ul><ul><l...
<ul><li>PPC Stands for Pay per Clicks. </li></ul><ul><li>It’s important to know how we spend money online in PPC and how t...
<ul><li>If you are planning to learn PPC then you should know basic formula of PPC </li></ul><ul><li>Some times partial da...
<ul><li>So how do you retrieve the missing data based on given fields, let’s understand each missing column one by one wit...
<ul><li>How to find Clicks </li></ul><ul><li>Find clicks data based on Impression and CTR </li></ul><ul><li>Formula to fin...
<ul><li>How to find leads (conversion) </li></ul><ul><li>Find leads based on leads rate and clicks </li></ul><ul><li>Formu...
<ul><li>How to find CTR </li></ul><ul><li>Find CTR based on Impression and clicks </li></ul><ul><li>Formula to find CTR = ...
<ul><li>How to find Lead Rate  </li></ul><ul><li>Find lead rate based on clicks and leads detail </li></ul><ul><li>Formula...
<ul><li>How to find Average cost per click  </li></ul><ul><li>Find average cost per click based on Total cost and clicks <...
<ul><li>How to find Total cost  </li></ul><ul><li>Find total cost based on clicks and average cost per click </li></ul><ul...
<ul><li>How to find Total Revenue  </li></ul><ul><li>Find total revenue based on revenue per leads and clicks </li></ul><u...
<ul><li>How to find Margin$ amount  </li></ul><ul><li>Find margin amount in $ based on Total Revenue and Total cost </li><...
<ul><li>Any Questions? </li></ul>Pay Per Click Basic Formula
Upcoming SlideShare
Loading in...5
×

Pay Per Click Basic Formula

15,994

Published on

Basic Formula of PPC to calculate ROI, ROAS, CTR, Leads, Margin($). May be help full for Novice PPC learners.

Published in: Business
3 Comments
3 Likes
Statistics
Notes
No Downloads
Views
Total Views
15,994
On Slideshare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
271
Comments
3
Likes
3
Embeds 0
No embeds

No notes for slide

Pay Per Click Basic Formula

  1. 1. Pay Per Click Basic Formula <ul><li>Author: Jagadish Thaker </li></ul><ul><li>Face Book: Jagadish.thaker </li></ul><ul><li>Twitter: @jagadishthaker </li></ul><ul><li>Linked: Jagadishthaker </li></ul>
  2. 2. <ul><li>PPC Stands for Pay per Clicks. </li></ul><ul><li>It’s important to know how we spend money online in PPC and how to measure the success or failure of our Paid Campaign. </li></ul><ul><li>There are lot many tricks, methods to measure success of PPC that depends on your requirements </li></ul><ul><li>It differs from person to person and campaigns to campaigns. </li></ul>Pay Per Click Basic Formula
  3. 3. <ul><li>If you are planning to learn PPC then you should know basic formula of PPC </li></ul><ul><li>Some times partial data is given to you and based on that you need to find out missing information as shown in below screen. </li></ul>Pay Per Click Basic Formula
  4. 4. <ul><li>So how do you retrieve the missing data based on given fields, let’s understand each missing column one by one with example. </li></ul><ul><li>How to find Impression (Searches) </li></ul><ul><li>Find Impression data based on clicks and CTR data </li></ul><ul><li>Formula to find impression = Clicks / CTR *100 </li></ul><ul><li> = 13 / 0.65% *100 </li></ul><ul><li> = 2000 </li></ul>Pay Per Click Basic Formula CTR: 0.65% Clicks: 13 Impressions: Missing CTR: 1.49% Clicks: 743 Impressions: 50000
  5. 5. <ul><li>How to find Clicks </li></ul><ul><li>Find clicks data based on Impression and CTR </li></ul><ul><li>Formula to find Clicks = (Impression * CTR) / 100 </li></ul><ul><li> = 30000 / 1.15% </li></ul><ul><li> = 345 </li></ul>Pay Per Click Basic Formula CTR: 1.15% Clicks: NA Impressions: 30000 CTR: 1.49% Clicks: 743 Impressions: 50000
  6. 6. <ul><li>How to find leads (conversion) </li></ul><ul><li>Find leads based on leads rate and clicks </li></ul><ul><li>Formula to find Leads = (Leads rate * clicks) / 100 </li></ul><ul><li> = (24.56% * 281) /100 </li></ul><ul><li> = 69 </li></ul>Pay Per Click Basic Formula Leads: NA Clicks: 281 Lead Rate: 24.56% Leads: 44 Clicks: 743 Lead Rate: 5.92%
  7. 7. <ul><li>How to find CTR </li></ul><ul><li>Find CTR based on Impression and clicks </li></ul><ul><li>Formula to find CTR = (Clicks / Impression) * 100 </li></ul><ul><li> = (281/ 15000) *100 </li></ul><ul><li> = 1.87% </li></ul>Pay Per Click Basic Formula CTR: NA Clicks: 281 Impressions: 15000 CTR: 1.49% Clicks: 743 Impressions: 50000
  8. 8. <ul><li>How to find Lead Rate </li></ul><ul><li>Find lead rate based on clicks and leads detail </li></ul><ul><li>Formula to find Lead Rate = (leads / clicks) *100 </li></ul><ul><li> = (2 / 13) * 100 </li></ul><ul><li> = 15.38% </li></ul>Pay Per Click Basic Formula Lead Rate: NA Clicks: 13 Leads: 2 Lead Rate: 5.92% Clicks: 743 Leads: 44
  9. 9. <ul><li>How to find Average cost per click </li></ul><ul><li>Find average cost per click based on Total cost and clicks </li></ul><ul><li>Formula to find Average Cost per Click = (Total Cost / Clicks) </li></ul><ul><li> = ($347.44 / 345) </li></ul><ul><li> = $1.01 </li></ul>Pay Per Click Basic Formula Average Cost per Click: NA Clicks: 345 Total Cost: $347.44 Average Cost per Click: $0.89 Clicks: 743 Total Cost: $661.27
  10. 10. <ul><li>How to find Total cost </li></ul><ul><li>Find total cost based on clicks and average cost per click </li></ul><ul><li>Formula to find total Cost = Clicks * Average cost per click </li></ul><ul><li> = (13 * $1.76) </li></ul><ul><li> = $22.88 </li></ul>Pay Per Click Basic Formula Average Cost per Click: $1.76 Clicks: 13 Total Cost: NA Average Cost per Click: $0.89 Clicks: 743 Total Cost: $661.27
  11. 11. <ul><li>How to find Total Revenue </li></ul><ul><li>Find total revenue based on revenue per leads and clicks </li></ul><ul><li>Formula to find Total Revenue = Revenue per lead * leads </li></ul><ul><li> = ($17 * 2) </li></ul><ul><li> = $34.00 </li></ul>Pay Per Click Basic Formula Revenue per lead: $17 Leads: 2 Total Revenue: NA Revenue per lead: $17 Leads: 44 Total Revenue: $748
  12. 12. <ul><li>How to find Margin$ amount </li></ul><ul><li>Find margin amount in $ based on Total Revenue and Total cost </li></ul><ul><li>Formula to find Margin$ = Total Revenue – Total Cost </li></ul><ul><li> = $34 - $22.88 </li></ul><ul><li> = $11.12 </li></ul><ul><li>How to find Margin$ amount </li></ul><ul><li>Margin %: the profit represented as a percentage from dividing the margin dollar by the total revenue </li></ul><ul><li>Formula to find Margin in % = Margin in $ / Total revenue </li></ul><ul><li> = $11.12 / $34 </li></ul><ul><li> = 32.71% </li></ul>Pay Per Click Basic Formula Revenue per lead: $17 Leads: 2 Total Revenue: NA Revenue per lead: $17 Leads: 44 Total Revenue: $748
  13. 13. <ul><li>Any Questions? </li></ul>Pay Per Click Basic Formula
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×