smart-insights-e-marketing-planning-models-v1-06-110616221337-phpapp01.xlsHome         Introduction to E-marketing spreads...
E-commerce investment appraisal model                                                          1_Web marketing model      ...
E-commerce investment appraisal model                                                                         2_Multichann...
HomeOnline Media Mix model - impression based                                                   Media costs               ...
Home                        Online Media Mix model - based on % budget - with example of average clickthrough ratesOverall...
Source: Dave Chaffey (www.davechaffey.com)
Costs Revenue                          Costs                             ProfitabilityTotal revenue     Cost of goods Medi...
Home                                                    Online Media Mix model - based on % budget - with example of avera...
DISCLAIMERThis spreadsheet is provided in good faith for modelling e-commerce investments. Smart Insights (Marketing Intel...
Costs                     Internal                                     Full total               House list       Site prom...
g Inteligence) Limited cannot be held responsible for the consequences of any errors in, orPlease notify me of formula err...
E-mail Campaign calculator created to support E-marketing training workshops                                              ...
7_ Ad revenue modelHome          Ad revenue worksheet - for site owners (especially publishers, portals and affiliates) to...
Home  Incremental profiltability model - gives a simple way of assessing potential returns when investing in new  promotio...
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  1. 1. smart-insights-e-marketing-planning-models-v1-06-110616221337-phpapp01.xlsHome Introduction to E-marketing spreadsheet models developed by Dr Dave Chaffey I have developed these spreadsheets to help marketers plan their returns from digital marketing campaigns by developing more specific goals. I hope you find them useful. If You have any comments or suggestions please contact me at the sites below. Smart Insights Daves company site offering best practice articles, consultancy and training www.twitter.com/davechaffey Dave uses Twitter for sharing tips and tools across of all digital marketing (esp analytics, search, email marketing and conversion optimisation) 1.Web marketing model A simple model at the level of whole site showing conversion of audiences into leads and outcomes. Includes profitability. 2.Multichannel marketing model Similar to first model, this enables top-level comparison of referrals between online and offline channels. 3.Media mix model - impression Defines conversion model for distinct digital media channels based on number of impressions serves and costs/responsiveness of media. Doesnt include profitability 4.Media Mix model - Budget E.G. Defines conversion model for distinct digital media channels based on a % budget split between channels and costs/responsiveness of media. Doesnt include profitability 5.Media Mix model - Vertical Defines conversion model for distinct digital media channels based on a % budget split between channels and costs/responsiveness of media. Also include profitability, so typically best for using as starting point in assignments where margin and revenue per sale (average order value) given. 6. E-mail objective setting A simple model for email campaigns for modelling worst and best case campaign response based on intermediate response stages including delivery, open, clickthrough, form response and final conversion from lead to sale. 7. Ad revenue model Designed for site owners to help them forecast revenue based on pages served with different types of ad units including affiliate (CPA), impresssion-based (CPM) or cost-per-click units on each page (assumes same across site) 8. Incremental profitability model A simple way of assessing potential improvements to site returns for an e-commerce site across the customer lifecycle Digital Marketing benchmarking A separate spreadsheet for assessing the digital marketing capabilities of an organisation as part of strategy development. DISCLAIMER This spreadsheet is provided in good faith for modelling budgets and performance for E-marketing. Smart Insights (Marketing Inteligence) Limited cannot be held responsible for the consequences of any errors in, or misinterpretation of, the spreadsheet models or for any actions taken as a result of using this spreadsheet. Please notify me of formula errors, so that I can update. Thanks, DaveSpreadsheet created by Internet marketing author and commentator Dave Chaffey of Smart InsightsSign up for the latest alerts on digital marketing best practice at:www.smartinsights.com Prepared by Dave Chaffey 06/17/2011 Page 1
  2. 2. E-commerce investment appraisal model 1_Web marketing model Home Web marketing model - A simplifed version of the Objective setting spreadsheet, but without the What if models See Chapter 4 of Dave Chaffeys Total E-mail Marketing for more details on customer acquisition using the web and e-mail E-mail campaign spreadsheet designed by Dave Chaffey of Marketing Insights (www.marketing-insights.co.uk) Model Scenario 1 Scenario 2 REACH of web site 1,000,000 250,000 Attraction effciency 20.00% 5.00% Web site VISITORS 200,000 12,500 Web marketing Site conversion efficiency 10.00% 5.00% efficiency characteristics LEADS generated 20,000 625 C Lead conversion efficiency 60.00% 40.00% Number of required OUTCOMES 12,000 250 Offline sales multiplier 1.0 1.0 Repeat customer multiplier 1.0 1.0 Average value per outcome £50 £30 Cost of acquisition per visitor (Average Cost per click, CPC) £0.30 £2.00 Variable Total visitor acquisition cost £60,000 £25,000 Gross profit margin 15.0% 20.0% costs Total cost of goods sold £510,000 £6,000 Total variable costs £570,000 £31,000 Other brand and marketing costs £2,000 £2,000 Fixed Site development/maintenance costs £10,000 £20,000 costs Other operational costs £5,000 £10,000 Total fixed costs £17,000 £32,000 Total costs £587,000 £63,000 Total revenue £600,000 £7,500 E-commerce Profitability £13,000 -£55,500 Return on Investment 2.2% -88.1% performance Revenue per customer £50.00 £30.00 measures Cost of customer acquisition (CPA) £5.00 £100.00 Blue cells = input variables - vary these for what-if analysis Orange cells = output variables (calculated - do not overtype) How to use this spreadsheet 1. Use for objective setting - vary reach and different types of efficiency using goal seeking to calculate required number of outcomes (key objective). 2. Use for what-if scenarios for different assumptions about efficiency - the example shows 2 different scenarios from best case to worst case. Sensitivity analysis of different variables can also be conducted. Need to perform for different media and products! 3. Use to evaluate proposals from different providers - check all cost components are present and compare quotes for each column. 4. Use post-launch to compare actual budget with estimated. Notes. A. Position mouse over cell to read the comment for cells with red triangles. B. This model is based on a single year only. A model integrated over several years is needed for detailed investment appraisal. C. This calculation does not allow for viral effects or reminders which may increase number of respondents - can increase CTR to allow for this. DISCLAIMER D. If negative amounts for nSent, CTR or completion are suggested the campaign is unrealistic in terms of input varaibles e.g. cost This spreadsheet is provided in good faith for modelling e-commerce investments. Smart Insights (Marketing Inteligence) Limited sent, value per outcome. cannot be held responsible for the consequences of any errors in, or misinterpretation of, the spreadsheet models or for any actions taken as a result of using this spreadsheet. Please notify me of formula errors, so that I can update. Thanks.© Marketing Insights Limited 2002 www.marketing-insights.co.uk <Improving performance through marketing intelligence>
  3. 3. E-commerce investment appraisal model 2_Multichannel marketing modelHome Totals E-channel Traditional channels REACH of Channel 1,000,000 1,000,000 2,000,000 Drive to traditional Drive to E-channel Response efficiency 5.0% 1.00% 5.00% 10.0% 10,000 50,000 RESPONDENTS from Channel 100,000 Unique visitors Offline inbound enquiries 110,000 210,000 Web marketing from Channel Conversion to lead efficiency 10.0% 5.00% 1.00% 20.0% efficiency 5,000 1,100 characteristics LEADS generated from Channel 11,100 Online leads Offline leads 27,000 38,100 Conversion to sale efficiency 20.0% 10.00% 0.50% 40.0% 1,110 135 OUTCOMES from Channel 2,355 Online sales Offline sales 11,910 14,265 Average value per outcome £50 £70 Cost of acquisition per respondent £2 £5 Cost of sale per customer £5 £50 Total visitor acquisition cost £200,000 £550,000 Gross profit margin 10.0% 10.0% Total cost of goods sold £105,975 £750,330 Total variable costs £305,975 £1,300,330 Variable Other brand and marketing costs £10,000 £20,000 Fixed costs Site development/maintenance costs £80,000 £100,000 costs Other operational costs £20,000 £40,000 Total fixed costs £110,000 £160,000 Total costs £415,975 £1,460,330 Total revenue £117,750 £833,700 E-commerce Profitability -£298,225 -£626,630 Return on Investment -71.7% -42.9% performance Revenue per customer £50.00 £70.00 measures Cost of customer acquisition (CPA) £84.93 £46.18Blue cells = input variables - vary these for what-if analysisOrange cells = output variables (calculated - do not overtype)How to use this spreadsheet1. Use for objective setting - vary reach and different types of efficiency using goal seeking to calculate required number of outcomes (key objective).2. Use for what-if scenarios for different assumptions about efficiency - the example shows 2 different scenarios from best case to worst case. Sensitivity analysis of different variables can also beconducted.3. Use to evaluate proposals from different providers - check all cost components are present and compare quotes for each column.4. Use post-launch to compare actual budget with estimated.Notes.A. Position mouse over cell to read the comment for cells with red triangles.B. This model is based on a single year only. A model integrated over several years is needed for detailed investment appraisal.C. This calculation does not allow for viral effects or reminders which may increase number of respondents - can increase CTR to allow for this.D. If negative amounts for nSent, CTR or completion are suggested the campaign is unrealistic in terms of input varaibles e.g. cost sent, value per outcome.DISCLAIMERThis spreadsheet is provided in good faith for modelling e-commerce investments. Smart Insights (Marketing Inteligence) Limited cannot be held responsible for the consequences of any errors in,or misinterpretation of, the spreadsheet models or for any actions taken as a result of using this spreadsheet. © Marketing Insights Limited 2002 www.marketing-insights.co.uk <Improving performance through marketing intelligence>
  4. 4. HomeOnline Media Mix model - impression based Media costs Media volume/response Conversion to Opportunity Conversion to Sale Setup/ CPM CPC Media Total cost Budg Impressions CTR Clicks or CRO nOpportu CPO CRS nSales % of CPS creative / costs et % or names visits nities sales (CPA) Mgt costsExternal online mediaOnline ads (CPM) £20,000 £10.0 £6.25 £80,000 £100,000 12% 8,000,000 0.2% 16,000 5.0% 800 £125.00 10.0% 80 4% £1,250.0Paid search (CPC) £5,000 £30.5 £2.00 £300,000 £305,000 37% 10,000,000 1.5% 150,000 5.0% 7,500 £40.67 10.0% 750 36% £406.7Natural search (Fixed) £30,000 £3.0 £0.30 £0 £30,000 4% 10,000,000 1.0% 100,000 5.0% 5,000 £6.00 10.0% 500 24% £60.0Affiliates (CPS) £20,000 £4.9 £0.82 £19,200 £39,200 5% 8,000,000 0.6% 48,000 5.0% 2,400 £16.33 10.0% 240 11% £80.0Aggregators (CPS) £20,000 £6.1 £0.76 £28,800 £48,800 6% 8,000,000 0.8% 64,000 5.0% 3,200 £15.25 10.0% 320 15% £90.0Sponsorships (Fixed) £10,000 £32.5 £6.50 £250,000 £260,000 32% 8,000,000 0.5% 40,000 5.0% 2,000 £130.00 10.0% 200 9% £1,300.0E-mail lists (CPM) £5,000 £80.0 £8.41 £32,000 £37,000 5% 400,000 1.1% 4,400 5.0% 220 £168.18 10.0% 22 1% £1,681.8Total/Average £110,000 £15.6 £1.94 £710,000 £820,000 100% 52,400,000 0.8% 422,400 5.0% 21,120 £38.83 10.0% 2,112 100% £388.3Internal online mediaIn-house e-mail list/DM £500 £0.1 £0.17 £10 £510 n/a 100,000 3.0% 3,000 15.0% 450 £1.13 30% 135 n/a £3.8Own-site ads (other footfall) £500 £1.0 £0.08 £1,000 £1,500 n/a 1,000,000 2.0% 20,000 10.0% 2,000 £0.75 25% 500 n/a £3.0Total/Average £1,000 £1.8 £0.09 £1,010 £2,010 n/a 1,100,000 2.1% 23,000 8.0% 2,450 £0.82 17.0% 635 n/a £3.2Overall total/Average £111,000 £15.4 £1.85 £711,010 £822,010 n/a 53,500,000 0.8% 445,400 8.6% 23,570 £34.88 18.4% 2,747 n/a £299.2Notes.1. CPM and CPC calculated based on total cost for comparison2. This is not a full ROI or lifetime value model since revnue/profitability/future value not includedBlue cells = input variables - vary these for what-if analysisOrange cells = output variables (calculated - do not overtype)How to use this spreadsheet1. First define expected conversion rates to opportunity (lead) and sale for different media (can be set to same value for simplicity).2. Then establish realistic costs for purchasing different media (CPM,CPA,CPC) as appropriate for your market.3. Finally vary the mix of impressions for different media, remembering that there are limits to media that can be purchased (e.g.number of search terms). Vary the impressions to maximise number of sales and minimise CPA while also minimising the riskof purchasing too much of one type of media - a more balanced budget diversifies risk.4. To compare the effectiveness of media look at differences in media for CPS and as % of budget and % of sales.DISCLAIMERThis spreadsheet is provided in good faith for modelling e-commerce investments. Smart Insights (Marketing Inteligence) Limitedcannot be held responsible for the consequences of any errors in, or misinterpretation of, the spreadsheet models or for any actionstaken as a result of using this spreadsheet. Please notify me of formula errors, so that I can update. Thanks.
  5. 5. Home Online Media Mix model - based on % budget - with example of average clickthrough ratesOverall budget £100,000Average order value £50.00Gross profit margin 30.0% Media costs Media volume/response Conversion to Opportunity Conversion to Sale Setup/ CPM CPC Media Total cost Budget Impressions CTR Clicks or CRO nOpportu CPO CRS nSales % of CPS creative costs % or names visits nities sales (CPA) /Mgt costsExternal online mediaOnline ad buys (CPM) £0 £10.0 £5.00 £10,000 £10,000 10% 1,000,000 0.2% 2,000 100.0% 2,000 £5.00 10.0% 200 1% £50.0Ad network (CPC) £0 £20.0 £1.00 £20,000 £20,000 20% 1,000,000 2.0% 20,000 100.0% 20,000 £1.00 10.0% 2,000 7% £10.0Paid search (CPC) £0 £4.0 £0.20 £30,000 £30,000 30% 7,500,000 2.0% 150,000 100.0% 150,000 £0.20 10.0% 15,000 52% £2.0Natural search (Fixed) £0 £0.5 £0.05 £5,000 £5,000 5% 10,000,000 1.0% 100,000 100.0% 100,000 £0.05 10.0% 10,000 35% £0.5Affiliates (CPS) £0 £10.0 £1.00 £5,000 £5,000 5% 500,000 1.0% 5,000 100.0% 5,000 £1.00 10.0% 500 2% £10.0Aggregators (CPS) £0 £0.0 £0.00 £0 £0 0% 0 1.0% 0 100.0% 0 £0.00 10.0% 0 0% £20.0Sponsorships (Fixed) £0 £100.0 £33.33 £10,000 £10,000 10% 100,000 0.3% 300 100.0% 300 £33.33 10.0% 30 0% £333.3Online PR (Fixed) £0 £100.0 £10.00 £10,000 £10,000 10% 100,000 1.0% 1,000 100.0% 1,000 £10.00 10.0% 100 0% £100.0E-mail lists (CPM) £0 £10.0 £1.00 £10,000 £10,000 10% 1,000,000 1.0% 10,000 100.0% 10,000 £1.00 10.0% 1,000 3% £10.0Total/Average £0 £4.7 £0.35 £100,000 £100,000 100% 21,200,000 1.4% 288,300 100.0% 288,300 £0.35 10.0% 28,830 100% £3.5Internal online mediaIn-house e-mail list/DM £1,000 £0.0 £0.33 £0 £1,000 n/a 100,000 3.0% 3,000 15.0% 450 £2.22 30% 135 n/a £7.4Own-site ads (other footfall) £1,000 £0.0 £0.05 £0 £1,000 n/a 1,000,000 2.0% 20,000 10.0% 2,000 £0.50 25% 500 n/a £2.0Total/Average £2,000 £1.8 £0.09 £0 £2,000 n/a 1,100,000 2.1% 23,000 70.8% 2,450 £0.82 15.8% 635 n/a £3.1Overall total/Average £2,000 £4.6 £0.33 £100,000 £102,000 n/a 22,300,000 1.4% 311,300 59.2% 290,750 £0.35 18.2% 29,465 n/a £3.5Notes.1. CPM and CPC calculated based on total cost for comparison2. This is not a full ROI or lifetime value model since revenue/profitability/future value not included3. For SEO, budget is automatically placed into setup/creative costs and you have to estimate the number of clicks this will deliver.4. For affiliate marketing, work back from Cost per sale to calculate sales, opportunities and clicks, so changing clickthrough and conversion rates impacts cells to left rather than right.5. The blue cells indicate the main control parameters for each media which are important to improving cost effectivenessBlue cells = input variables - vary these for what-if analysisOrange cells = output variables (calculated - do not overtype)How to use this spreadsheet1. First define expected conversion rates to opportunity (lead) and sale for different media (can be set to same value for simplicity).2. Then establish realistic costs for purchasing different media (CPM,CPA,CPC) as appropriate for your market.3. Finally vary the mix of impressions for different media, remembering that there are limits to media that can be purchased (e.g. number ofsearch terms). Vary the impressions to maximise number of sales and minimise CPA while also minimising the riskof purchasing too much of one type of media - a more balanced budget diversifies risk.4. To compare the effectiveness of media look at differences in media for CPS and as % of budget and % of sales.DISCLAIMERThis spreadsheet is provided in good faith for modelling e-commerce investments. Smart Insights (Marketing Inteligence) Limited cannot beheld responsible for the consequences of any errors in, or misinterpretation of, the spreadsheet models or for any actions taken as a resultof using this spreadsheet. Please notify me of formula errors, so that I can update. Thanks.
  6. 6. Source: Dave Chaffey (www.davechaffey.com)
  7. 7. Costs Revenue Costs ProfitabilityTotal revenue Cost of goods Media Total costs Profit Return on sold costs (inc media) Investment £10,000.00 £7,000 £10,000 £17,000 -£7,000.00 -41.2% £100,000.00 £70,000 £20,000 £90,000 £10,000.00 11.1% £750,000.00 £525,000 £30,000 £555,000 £195,000.00 35.1% £500,000.00 £350,000 £5,000 £355,000 £145,000.00 40.8% £25,000.00 £17,500 £5,000 £22,500 £2,500.00 11.1% £0.00 £0 £0 £0 £0.00 #DIV/0! £1,500.00 £1,050 £10,000 £11,050 -£9,550.00 -86.4% £5,000.00 £3,500 £10,000 £13,500 -£8,500.00 -63.0% £50,000.00 £35,000 £10,000 £45,000 £5,000.00 11.1% £1,441,500.00 £1,009,050 £100,000 £1,109,050 £332,450.00 30.0% £0.00 #DIV/0! £0.00 #DIV/0! £6,750.00 £4,725 £1,000 £5,725 £1,025.00 17.9% £25,000.00 £17,500 £1,000 £18,500 £6,500.00 35.1% £31,750.00 £22,225 £2,000 £24,225 £7,525.00 31.1% £0.00 #DIV/0! £1,473,250.00 £1,031,275 £102,000 £1,133,275 £339,975.00 30.0%
  8. 8. Home Online Media Mix model - based on % budget - with example of average clickthrough rates Input Overall budget £100,000 Blue cells = input variables - vary these for what-if analysis parameter Average order value £50 table Gross profit margin 30.0% Orange cells = output variables (calculated - do not overtype) Advertising Search Partners All digital media channels Ad buys Ad network Paid search Natural Affiliates Aggregators Sponsorship Email list Total or (CPM) (CPM) (CPC) search (CPA) (CPA) (Fixed) (CPM) Average Setup/ creative / Mgt costs £0 £0 £0 £0 £0 £0 £0 £0 £0 CPM £10.0 £10.0 £4.0 £0.4 £10.0 £20.0 £100.0 £10.0 £2.8 Media costs CPC £5.0 £5.0 £0.20 £0.20 £5.0 £10.0 £33.3 £100.0 £0.5 Media costs £10,000 £10,000 £30,000 £10,000 £10,000 £10,000 £10,000 £10,000 £100,000 Total cost:setup & media £10,000 £10,000 £30,000 £10,000 £10,000 £10,000 £10,000 £10,000 £100,000 Budget % 10% 10% 30% 10% 10% 10% 10% 10% 100% Media impressions Impressions or names 1,000,000 1,000,000 7,500,000 25,000,000 1,000,000 500,000 100,000 10,000 36,110,000 & CTR 0.2% 0.2% 2.0% 0.2% 0.2% 0.2% 0.3% 1.0% 0.6% Response Clicks or site visits 2,000 2,000 150,000 50,000 2,000 1,000 300 100 207,400 Conversion Conversion rate to opportunity 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% to Number of opportunities 2,000 2,000 150,000 50,000 2,000 1,000 300 100 207,400 Opportunity (Lead) Cost per opportunity £5.0 £5.0 £0.2 £0.2 £5.0 £10.0 £33.3 £100.0 £0.5 Conversion Conversion rate to sale 100.0% 100.0% 100.0% 100.0% 50.0% 100.0% 100.0% 100.0% 93.8% to Number of sales 2,000 2,000 150,000 50,000 1,000 1,000 300 100 206,400 Sales % of sales 1.0% 1.0% 72.7% 24.2% 0.5% 0.5% 0.1% 0.0% 100.0% Cost per sale (CPA) £5.0 £5.0 £0.2 £0.2 £10.0 £10.0 £33.3 £100.0 £0.5 Revenue Total revenue £100,000 £100,000 £7,500,000 £2,500,000 £50,000 £50,000 £15,000 £5,000 £10,320,000 Cost of goods sold £70,000 £70,000 £5,250,000 £1,750,000 £35,000 £35,000 £10,500 £3,500 £7,224,000 Costs Media costs £10,000 £10,000 £30,000 £10,000 £10,000 £10,000 £10,000 £10,000 £100,000 Total costs (inc media) £80,000 £80,000 £5,280,000 £1,760,000 £45,000 £45,000 £20,500 £13,500 £7,324,000 Profitability Profit £20,000 £20,000 £2,220,000 £740,000 £5,000 £5,000 -£5,500 -£8,500 £2,996,000 Return on Investment 25.0% 25.0% 42.0% 42.0% 11.1% 11.1% -26.8% -63.0% 40.9% Note: 1. CPM and CPC calculated based on total cost for comparison 2. This is not a full ROI or lifetime value model since future lifetime value not included 3. For SEO, budget is automatically placed into setup/creative costs and you have to estimate the number of clicks this will deliver. 4. For affiliate marketing, work back from Cost per sale to calculate sales, opportunities and clicks, so changing clickthrough and conversion rates im 5. The blue cells indicate the main control parameters for each media which are important to improving cost effectiveness Source: Dave Chaffey (www.davechaffey.com) How to use this spreadsheet 1. First define expected conversion rates to opportunity (lead) and sale for different media (can be set to same value for simplicity). 2. Then establish realistic costs for purchasing different media (CPM,CPA,CPC) as appropriate for your market. 3. Finally vary the mix of impressions for different media, remembering that there are limits to media that can be purchased (e.g. number of search te sales and minimise CPA while also minimising the risk of purchasing too much of one type of media - a more balanced budget diversifies risk. 4. To compare the effectiveness of media look at differences in media for CPS and as % of budget and % of sales. DISCLAIMER This spreadsheet is provided in good faith for modelling e-commerce investments. Smart Insights (Marketing Inteligence) Limited cannot be held res misinterpretation of, the spreadsheet models or for any actions taken as a result of using this spreadsheet. Please notify me of formula errors, so tha
  9. 9. DISCLAIMERThis spreadsheet is provided in good faith for modelling e-commerce investments. Smart Insights (Marketing Inteligence) Limited cannot be held resmisinterpretation of, the spreadsheet models or for any actions taken as a result of using this spreadsheet. Please notify me of formula errors, so tha
  10. 10. Costs Internal Full total House list Site promo Total External and banners internal £0 £0 £0 £0 £0.0 £0.0 £0.0 £2.8 £0.0 £0.0 £0.0 £0.5 £0 £0 £0 £100,000 £0 £0 £0 £100,000 N/A N/A N/A NA 10,000 100,000 110,000 36,220,000 0.2% 0.2% 0.2% 0.6% 20 200 220 207,620 100.0% 100.0% 100.0% 100.0% 20 200 220 207,620 £0.0 £0.0 £0.0 £0.5 100.0% 100.0% 100.0% 93.0% 20 200 220 206,620 NA NA NA NA £0.0 £0.0 £0.0 £0.5 £1,000 £10,000 £11,000 £10,331,000 £700 £7,000 £7,700 £7,231,700 £0 £0 £0 £100,000 £700 £7,000 £7,700 £7,331,700 £300 £3,000 £3,300 £2,999,300 42.9% 42.9% 42.9% 40.9% Conversion to Sale Revenue Costs Profitabilityf clicks this will deliver. ing clickthrough and conversion rates impacts cells to left rather than right.me value for simplicity).ket.n be purchased (e.g. number of search terms). Vary the impressions to maximise number of sales.g Inteligence) Limited cannot be held responsible for the consequences of any errors in, orPlease notify me of formula errors, so that I can update. Thanks.
  11. 11. g Inteligence) Limited cannot be held responsible for the consequences of any errors in, orPlease notify me of formula errors, so that I can update. Thanks.
  12. 12. E-mail Campaign calculator created to support E-marketing training workshops 6_ E_mail objective settingfrom CIM and Dave Chaffeys Total E-mail Marketing bookHome Objective setting worksheet - use to assess Return on Investment for different campaigns. Model See Chapter 3 of Dave Chaffeys Total E-mail Marketing for more details on E-marketing campaign planning E-mail campaign spreadsheet designed by Dave Chaffey of Marketing Insights (www.marketing-insights.co.uk) Best case Worst case Campaign 3 Number of e-mails SENT from list 10,000 10,000 10,000 Deliverability (%) 90.0% 80.0% 100.0% Number E-mails DELIVERED 9,000 8,000 10,000 Open Rate (%) 30.00% 20.00% 100.00% Number E-mail OPENED 2,700 1,600 10,000 E-mailcampaign Clickthrough rate % (CTR) 10.0% 8.0% 100.0%response details Number recipients who CLICKTHROUGH to landing page 270 128 10,000 Form completion % 20.0% 10.0% 100.0% Number of completed RESPONSES 54 13 10,000 Outcome conversion % 25.0% 22.5% 100.0% Number of required OUTCOMES 14 3 10,000 Average value per outcome £10.00 £10.00 £10.00 List rental (per thousand) £150 £150 £150 Cost per e-mail sent £0.050 £0.050 £0.050 Variable Fulfillment cost per response e.g.offers and response management £0.800 £0.800 £0.800 Total list cost £1,500 £1,500 £1,500 costs Total sending cost £500 £500 £500 Total fulfillment cost £43 £10 £8,000 E-mail creative £500 £500 £500 Fixed Landing page / microsite creative £800 £800 £800 costs Set-up cost for sending list and/or fixed fulfillment costs £250 £250 £250 Total cost £3,593 £3,560 £11,550 Total revenue £135 £29 £100,000Campaign Profitability -£3,458 -£3,531 £88,450 Return on Investment -96.2% -99.2% 765.8% success Cost per click (CPC) £13.31 £27.81 £1.16measures Cost per response (CPA) £66.54 £278.14 £1.16 Revenue per response £2.50 £2.25 £10.00Blue cells = input variables - vary these for what-ifanalysisOrange cells = output variables (calculated - do notovertype)How to use this spreadsheet1. Use for objective setting - vary number sent, CTR and completion rate to achieve the required number or responses ortarget profitability.2. Use for what-if scenarios for different response rates - the example shown shows 3 different scenarios from best case toworst case.3. Use to evaluate proposals from different providers - check all cost components are present and compare quotes foreach column.4. Use post campaign to compare campaign success across different campaigns.Notes.A. Position mouse over cell to read the comment for cells with red triangles.B. This sheet uses a simplification of all measures. Click on response details tab at bottom for more detailed stages ofcampaign. Margin is not built into this model.C. This calculation does not allow for viral effects or reminders which may increase number of respondents - can increaseDISCLAIMERfor this.CTR to allowThis spreadsheet is provided in good faithcompletion are suggested the campaignInsights (Marketing Inteligence) LimitedD. If negative amounts for nSent, CTR or for modelling e-mail campaigns. Smart is unrealistic in terms of input varaiblescannot be held value per outcome. consequences of any errors in, or misinterpretation of, the spreadsheet models or fore.g. cost sent, responsible for theany actions taken as a result of using this spreadsheet. Please notify me of formula errors, so that I can update. Thanks. © Marketing Insights Limited 2002-2003 www.marketing-insights.co.uk >>Improving performance through marketing intelligence>>
  13. 13. 7_ Ad revenue modelHome Ad revenue worksheet - for site owners (especially publishers, portals and affiliates) to assess potential ad revenue for site based on number of page views and different types of ads in different containers. Assumes same number of ad units run of site, but a version could be created readily for each site section. Ad Unit or Container type Measure Site Pages served 1,000,000 CPM (Cost Per Thousand) £10 % Inventory served 20% Avg. Clickthrough (CTR %) 0.10% Display Ad units served per page 2 advertising (CPM) Clicks - CPM ads 400 Revenue - display ads £4,000 Earnings per 100 clicks (EPC) £1,000.0 eCPM - display ads £4.00 % Inventory served 100% Avg. Clickthrough (CTR %) 0.30% Fixed Ad units served 1 1 Run-of-site Clicks - fixed 3,000 Sponsorship Revenue - fixed sponsorship* £3,000 Earnings per 100 clicks (EPC) £100.0 eCPM - fixed £3.00 % Inventory served 100% Avg. Clickthrough (CTR %) 1.00% Avg. Cost Per Click £0.30 Text ad Ad units served per page 1 advertising (CPC) Clicks - CPC ads 10,000 Revenue - CPC ads £3,000 Earnings per 100 clicks (EPC) £30.0 eCPM - CPC ads £3 % Inventory served 100% Avg. Clickthrough (CTR %) 0.50% Ad units served per page 1 Clicks - Affiliates 5,000 Affiliates Desination conversion rate (%) 3% Commission Average order value £100 (and PPV) Commission % 10% Revenue - affiliates £1,500 Earnings per 100 clicks (EPC) £30.0 eCPM - affiliates £1.50 Clicks - total 18,400 Overall metrics for site Revenue - total £11,500 Earnings per 100 clicks (EPC) - total £62.50 eCPM - total £11.50 Blue cells = input variables - vary these for what-if analysis Orange cells = output variables (calculated - do not overtype) DISCLAIMER This spreadsheet is provided in good faith for modelling e-commerce investments. Smart Insights (Marketing Inteligence) Limited cannot be held responsible for the consequences of any errors in, or misinterpretation of, the spreadsheet models or Ad revenue model as a result of using this spreadsheet. for any actions taken Some guidelines on applying this model, which is available on the other worksheet: 1. This model asssumes there are the same ad unit types throughout the site - additional columns could be created for different page types or site sections. 2. Use the % inventory to roughly adjust the presence of the ad units throughout the site (set to 100% if run-of-site) or if all the inventory cant be sold in a given time period. 3. Set ad units of each type on the page. Bear in mind that position of individual placements will drastically affect CTR. So for a more accurate model, additional rows could be created for ad units above the fold or within article copy, which will have a higher CTR. 4. I have set the CTRs to a typical average for different media, although beware since these are averages. 5. Earnings per thousand pages served (eCPM) should be reviewed to compare value generated by pages for different ad units / media deals.smart-insights-e-marketing-planning-models-v1-06-110616221337-phpapp01.xls 06/17/2011
  14. 14. Home Incremental profiltability model - gives a simple way of assessing potential returns when investing in new promotion methods, new functionality, or conversion optimisation across the whole customer lifecycle. Use for top- level annual planning. Performance measure Worst case Best case Acquisition Current unique visitors to site or section per year 1,000,000 1,000,000 Potential incremental visitors 1.00% 2.00% Cost of increasing visitors (Year 1) £4,000 £20,000 Potential incremental visits 10,000 20,000 Potential future visits total 1,010,000 1,020,000 Conversion Current conversion rate 2.00% 2.00% Incremental conversion rate change 20.00% 5.00% Cost of improving conversion (Year 1) £20,000 £20,000 New conversion rate 2.40% 2.10% Current sales 20,000 20,000 Potential incremental leads or sales (from conversion) 4,000 1,000 Potential future sales total (from visits and conversion) 24,240 21,420 Sales value Current average order value £50 £50 Potential incremental average order value 10.00% 0.00% Cost of improving AOV (Year 1) £10,000 £10,000 New AOV £55.00 £50.00 Current revenue £1,000,000 £1,000,000 Potential incremental revenue (from AOV) £100,000 £0 Potential future revenue total (from visits, conv and AOV) £1,333,200 £1,071,000 Returns Current returns rate 10.00% 10.00% Potential incremental returns change 5.00% 3.00% Cost of improving returns rate £5,000 £5,000 New returns rate 9.50% 9.70% Current revenue (with returns) £900,000 £900,000 Potential incremental revenue (with reduced returns) £905,000 £903,000 Potential future revenue total (with all improvements above) £1,206,546 £967,113 Channel profitability Margin 15% 15% Current site profit £135,000 £135,000 Future site profit £180,982 £145,067 Change in profit (%) 34% 7% Incremental profit £45,982 £10,067 Total initiative costs £39,000 £55,000 Return on investment 18% -82% A high-level model for assessing potential increases in return from enhancing different parts of the sales cycle, for an e-commerce site.
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