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PPC Basic Formula

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.

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Lalitendu Sahoo
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478 views12 pages

PPC Basic Formula

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.

Uploaded by

Lalitendu Sahoo
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

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

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