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Online Marketing Metrics (ROI Calculations)

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Lauren C. Jones
Lauren C. Jones

Online marketing metrics describes key basic marketing ROI calculations every marketer should know such as CPA, CPL, CPM etc; with some practical examples.

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ONLINE MARKETING METRICS Lauren Jones 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 E.g. (£20,000 - £1,500)/£1,500 = £12.33 Revenue Investment Investment ROI 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 E.g. £1,500 ÷ 62 = £24.19 Cost CPA / CPL Leads
Cost Per Thousand (CPM) Cost of an Ad [Multiplied] by 1000 [Divided] by Number of Circulations (site placements) E.g. £1,500 x 1000 ÷ 250,000 = £6 Cost Circulations CPM
Conversion Rate (CR) Number of Goals* [Divided] by Visits E.g. 62 ÷ 12,000 x 100 = 0.52% Visits CR Goals *Goals can be anything from transactions, email sign-ups, brochure downloads, video views etc.
Click-through Rate (CTR) (Clicks [Divided] by Impressions) [Multiplied] 100 E.g. (2,000 ÷ 40,000) x 100 = 5% Clicks Impressions CTR
Thank You! Questions or Comments? Lauren Jones Twitter: @Lauren_Reports Email: lauren@make-it-rain.co.uk Web: http://lauren-jones.co.uk

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Online Marketing Metrics (ROI Calculations)

  • 2. 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.
  • 3. Return on Investment (ROI) (Revenue [Minus] Investment) [Divided] by Investment E.g. (£20,000 - £1,500)/£1,500 = £12.33 Revenue Investment Investment ROI ROI shows you how much you get for every £ or $ you spend!
  • 4. Cost Per Acquisition/Lead (CPA or CPL) Total Cost of Campaign [Divided] by Number of Leads E.g. £1,500 ÷ 62 = £24.19 Cost CPA / CPL Leads
  • 5. Cost Per Thousand (CPM) Cost of an Ad [Multiplied] by 1000 [Divided] by Number of Circulations (site placements) E.g. £1,500 x 1000 ÷ 250,000 = £6 Cost Circulations CPM
  • 6. Conversion Rate (CR) Number of Goals* [Divided] by Visits E.g. 62 ÷ 12,000 x 100 = 0.52% Visits CR Goals *Goals can be anything from transactions, email sign-ups, brochure downloads, video views etc.
  • 7. Click-through Rate (CTR) (Clicks [Divided] by Impressions) [Multiplied] 100 E.g. (2,000 ÷ 40,000) x 100 = 5% Clicks Impressions CTR
  • 8. Thank You! Questions or Comments? Lauren Jones Twitter: @Lauren_Reports Email: lauren@make-it-rain.co.uk Web: http://lauren-jones.co.uk