PPC Basic Formula

5,521 views

Published on

PPC Basic Formula

Published in: Technology, Design
0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
5,521
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
107
Comments
0
Likes
3
Embeds 0
No embeds

No notes for slide

PPC Basic Formula

  1. 1. PPC(PAY PER CLICK) BASICFORMULASLalitendu Sahoo
  2. 2. Pay Per Click Basic Formula  How to find Impression (Impression refers to when your ad is shown on a search results page after being triggered by a users search query.) (Searches)  Find Impression data based on clicks and CTR data Impression = Clicks / CTR *100 Impressions = ? Clicks: 15 CTR: 0.40% ie. 15 / 0.40% *100 = 3750
  3. 3. Pay Per Click Basic Formula How to find Clicks Find clicks data based on Impression and CTR(Click Through Rate is a measure of the number of clicks received from the number of ad impressions delivered.) Clicks = (Impression * CTR) / 100 Impressions: 20000 Clicks ? CTR: 1.25% ie. 20000 / 1.25% = 160
  4. 4. Pay Per Click Basic Formula How to find leads(people who click from an ad and then complete an inquiry form is considered to be a lead. The advertiser would pay based on the number leads received.) (conversion) Find leads based on leads rate and clicks Leads = (Leads rate * clicks) / 100 Lead Rate: 33.64 Clicks: 156 Leads: ? ie. (33.64% * 156) /100 = 52.47
  5. 5. Pay Per Click Basic Formula How to find CTR (Click Through Rate is a measure of the number of clicks received from the number of ad impressions delivered.) Find CTR based on Impression and clicks CTR = (Clicks / Impression) * 100 Impressions: 8000 Clicks: 170 CTR: ? ie. (170/ 8000) *100 = 2.12%
  6. 6. Pay Per Click Basic Formula How to find Lead Rate Find lead rate based on clicks and leads detail Lead Rate = (leads / clicks) *100 Lead: 5 Click: 18 Lead Rate: ? ie. (5 / 18) * 100 = 27.77%
  7. 7. Pay Per Click Basic Formula How to find Average cost per click Find average cost per click based on Total cost and clicks Average Cost per Click = (Total Cost / Clicks) Total Cost: $1000 Clicks: 250 Average Cost per Click: ? ie. ($1000 / 250) = $4
  8. 8. Pay Per Click Basic Formula How to find Total cost Find total cost based on clicks and average cost per click Total Cost = Clicks * Average cost per click Total Cost: ? Clicks: 15 Average Cost per Click: $2.5 ie. (15 * $2.5) = $37.5
  9. 9. Pay Per Click Basic Formula How to find Total Revenue Find total revenue based on revenue per leads and clicks Total Revenue = Revenue per lead * leads Total Revenue: ? Lead: 5 Revenue per Lead: $20 ie. (20$ * 5) = $100
  10. 10. Pay Per Click Basic Formula How to find Margin$ amount Find margin amount in $ based on Total Revenue and Total cost Margin$ = Total Revenue – Total Cost Margin: ? Total Revenue: 100$ Total Cost: 80$ ie. $100 - $80 = $20
  11. 11. Pay Per Click Basic Formula How to find Margin$ amount Margin %: the profit represented as a percentage from dividing the margin dollar by the total revenue Margin in % = Margin in $ / Total revenue Margin: 20$ Total Revenue: 100$ ie. $20 / $100 = 20%
  12. 12. Pay Per Click Basic Formula Q&A

×