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