SEM Formulas
Below are some Search Engine Marketing formulas which will help you make complicated Advertising calculations easier:
Cost Per Thousand Impressions (CPM) = Cost / Impressions x 1000
Cost Per Click (CPC) = Cost / Clicks
Impressions = Cost / CPM x 1000
Cost = Impressions / 1000 x CPM
Click Thru Rate % = Clicks / Impressions
Effective Cost Per Thousand Impressions (ECPM) = Revenue / Impressions x 1000
ECPC = Revenue / Clicks
Cost Per Acquisition (CPA) = Media Cost to Date / Conversions
Estimated Clicks (CPC) = Media Cost / CPC
Estimated Clicks (CPM) = Impressions x CTR%
Estimated Conversions = Clicks x Conversion Rate (CVR)%
Conversion Rate = Conversions / Clicks
Efficiency% = Click Thru Rate (CTR)% x Conversion Rate (CVR)%
% Campaign Complete to Date = Current Campaign Revenue / Total Campaign Revenue
Return on Ad Spend (ROAS) = Revenue / Media Cost
Return on Investment (ROI) = Revenue / Total Cost (Media + Fees)
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