Senior Campaign Manager
Make It Rain
Why do we need online marketing metrics?
In todays world of proving online marketing ROI
and hitting performance targets, it’s crucial to
know basic ROI calculations.
Return on Investment (ROI)
(Revenue [Minus] Investment) [Divided] by Investment
(£20,000 - £1,500)/£1,500 = £12.33
ROI shows you how much you get for every £ or $ you spend!
Cost Per Acquisition/Lead (CPA or CPL)
Total Cost of Campaign [Divided] by Number of Leads
£1,500 ÷ 62 = £24.19
CPA / CPL
Cost Per Thousand (CPM)
Cost of an Ad [Multiplied] by 1000 [Divided] by Number
of Circulations (site placements)
£1,500 x 1000 ÷ 250,000 = £6
Conversion Rate (CR)
Number of Goals* [Divided] by Visits
62 ÷ 12,000 x 100 = 0.52%
*Goals can be anything from transactions, email sign-ups, brochure downloads, video
Click-through Rate (CTR)
(Clicks [Divided] by Impressions) [Multiplied] 100
(2,000 ÷ 40,000) x 100 = 5%
Questions or Comments?