Digital Marketing Formulas

20 Essential formulas MUST be known by digital marketing managers to enhance any digital campaign and achieved the campaign objective successfully.
 

• CTR(Click Through Rate) = Clicks/Impressions X 100
   
• CPM = Cost/1000 Impressions
   
• CPA= Total Cost(Per Acquisition)/Total No. Of Leads
   
• Conversion Rate = Conversion/Clicks
   
• Total Cost = Click * CPC
   
• Adrank = CPC * (Quality Score + Ad-Extension)
   
• Quality Score = Depends On – CTR, Landing Page, Ad Relevance
   
• Actual QS = Sum( (Sum Of QS * Impression)/ Sum Of Impressions)
   
• Actual CPC = (Ad Rank Below Competitor/Quality Score Of Your) +0.01
   
• ROAS (Return On Ad Spend) = Revenue(Or Conversion Value)/Ad Spends
   
• ROI = (Conversion- Cost)/Cost Of Ad Spend
   
• Cost = Conversion Rate * Profit Margin
   
• Max CPC = (Avg Conversion Value/Desired ROAS)*Conversion Rate
   
• Max CPC = (Total Conversion/Clicks)/Desired ROAS
   
• Ad CTR = Clicks / Ad Impressions
   
• Ad Request CTR = Clicks / Ad Requests
   
• Ad Request RPM = (Estimated Earnings / Number Of Ad Requests) * 1000
   
• Ad RPM = (Estimated Earnings / Ad Impressions) * 1000
   
• CTR = Clicks / Impressions
   
• Coverage = (Ad Requests That Returned Ads / Total Ad Requests) * 100