Marketing Metrics & Formulas PDF

| Metric | Stands For | Formula | Purpose | |---|---|---|---| | ROI | Return on Investment | $ROI = \frac{Total Revenue - Total Cost}{Total Cost} \times 100$ | Measures the profitability of a campaign relative to its cost. | | CTR | Click-Through Rate | $CTR = \frac{Total Clicks}{Total Impressions}...

| Metric | Stands For | Formula | Purpose | |---|---|---|---| | ROI | Return on Investment | $ROI = \frac{Total Revenue - Total Cost}{Total Cost} \times 100$ | Measures the profitability of a campaign relative to its cost. | | CTR | Click-Through Rate | $CTR = \frac{Total Clicks}{Total Impressions} \times 100$ | Indicates the relevance and engagement of the ad with the audience. | | CR | Conversion Rate | $CR = \frac{Total Conversions (Sales)}{Total Clicks} \times 100$ | Measures how effectively clicks turn into desired actions (sales). | | CPC | Cost Per Click | $CPC = \frac{Total Media Spend}{Total Clicks}$ | Tracks the cost-efficiency of generating website traffic or ad clicks. | | Cost Per Sale/Transaction | Cost Per Sale or Purchase | $Cost Per Sale = \frac{Total Media Spend}{Total Sales (Transactions)}$ | Evaluates the cost-efficiency of acquiring a single sale. | | Profit (Search Ads) | Profit from Search Ads | $Profit = (Transactions \times Margin Per Transaction) - Media Spend$ | Shows the financial success of search ad campaigns. | | CPM | Cost Per Thousand Impressions | $CPM = \frac {Total Media Spend}{Total Impressions} \times 1000$ | Measures the cost of reaching 1,000 people; used in awareness campaigns. | | CPA | Cost Per Acquisition | $CPA = \frac{Total Media Spend}{Total Conversions (Sales)} $ | Assesses the cost-efficiency of acquiring one customer or sale. |