Scribd Logo
Upload

Welcome to Scribd!

  • 287 views

    PPC Basic Formula

    Uploaded by

    Lalitendu Sahoo
    The document discusses basic formulas for calculating key metrics in pay per click (PPC) advertising campaigns. It provides formulas for calculating impressions, clicks, leads, click-through rate (CTR), lead rate, average cost per click, total cost, total revenue, margin amount in dollars, and margin percentage based on data for various metrics like clicks, impressions, leads, costs, and revenues. The document is intended as a guide for understanding basic PPC metrics and calculations.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd

    PPC Basic Formula

    Uploaded by

    Lalitendu Sahoo
    287 views12 pages
    The document discusses basic formulas for calculating key metrics in pay per click (PPC) advertising campaigns. It provides formulas for calculating impressions, clicks, leads, click-through rate (CTR), lead rate, average cost per click, total cost, total revenue, margin amount in dollars, and margin percentage based on data for various metrics like clicks, impressions, leads, costs, and revenues. The document is intended as a guide for understanding basic PPC metrics and calculations.

    Original Description:

    Pay Per Click Basic Formula. Lalit.

    Original Title

    Ppc Basic Formula

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses basic formulas for calculating key metrics in pay per click (PPC) advertising campaigns. It provides formulas for calculating impressions, clicks, leads, click-through rate (CTR), lead rate, average cost per click, total cost, total revenue, margin amount in dollars, and margin percentage based on data for various metrics like clicks, impressions, leads, costs, and revenues. The document is intended as a guide for understanding basic PPC metrics and calculations.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    287 views12 pages

    PPC Basic Formula

    Uploaded by

    Lalitendu Sahoo
    The document discusses basic formulas for calculating key metrics in pay per click (PPC) advertising campaigns. It provides formulas for calculating impressions, clicks, leads, click-through rate (CTR), lead rate, average cost per click, total cost, total revenue, margin amount in dollars, and margin percentage based on data for various metrics like clicks, impressions, leads, costs, and revenues. The document is intended as a guide for understanding basic PPC metrics and calculations.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 12
    At a glance
    Powered by AI
    The key takeaways are formulas for calculating various pay per click metrics like impressions, clicks, leads, CTR, costs and revenues based on other available metrics.

    You calculate impressions by dividing clicks by CTR and multiplying by 100. For example, if clicks are 15 and CTR is 0.4%, impressions would be 3750.

    You calculate clicks by multiplying impressions by CTR and dividing by 100. For example, if impressions are 20000 and CTR is 1.25%, clicks would be 160.

    PPC(PAY PER CLICK) BASIC FORMULAS

    Lalitendu Sahoo

    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 user's 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

    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

    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

    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%

    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%

    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

    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

    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

    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

    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%

    Pay Per Click Basic Formula

    Q&A

    You might also like