Here are the some Google (Ads) AdWords Formulas that are helpful for you to measure the ROI and Cost through ad words.
| No. | Formula | Explanation |
|---|---|---|
| 1 | CTR (Click Through Rate) | Clicks / Impressions * 100 |
| 2 | CPM (Cost Per Mille) | Cost / 1000 Impressions |
| 3 | CPA (Cost Per Acquisition) | Total Cost / Total Number of Leads |
| 4 | Conversion Rate | Conversions / Clicks |
| 5 | Total Cost | Clicks * CPC (Cost Per Click) |
| 6 | Ad Rank | CPC * (Quality Score + Ad-Extension) |
| 7 | Quality Score | Depends on CTR, Landing Page, Ad Relevance |
| 8 | Actual Quality Score | Sum( (Sum of Quality Score * Impressions) / Sum of Impressions) |
| 9 | Actual CPC (Cost Per Click) | (Ad Rank Below Competitor / Your Quality Score) + 0.01 |
| 10 | ROAS (Return on Ad Spend) | Revenue (or Conversion Value) / Ad Spends |
| 11 | ROI (Return on Investment) | (Revenue – Cost) / Cost of Ad Spend * 100 |
| 12 | Cost | Conversion Rate * Profit Margin |
| 13 | Max CPC (Maximum Cost Per Click) | (Average Conversion Value / Desired ROAS) * Conversion Rate or (Total Conversions / Clicks) / Desired ROAS |
| 14 | Ad CTR (Ad Click Through Rate) | Clicks / Ad Impressions |
| 15 | Ad Request CTR | Clicks / Ad Requests |
| 16 | Ad Request RPM | (Estimated Earnings / Number of Ad Requests) * 1000 |
| 17 | Ad RPM (Ad Revenue Per Mille) | (Estimated Earnings / Ad Impressions) * 1000 |
| 18 | Coverage | (Ad Requests that Returned Ads / Total Ad Requests) * 100 |
| 19 | Delivery Rate | Ad Impressions / Ad Requests |
| 20 | Drop-off Rate | Number of Impressions / Matched Requests * 100 |
| 21 | Impression RPM | (Estimated Earnings / Impressions) * 1000 |
| 22 | Page CTR (Page Click Through Rate) | Clicks / Page Views |
| 23 | Page RPM (Page Revenue Per Mille) | (Estimated Earnings / Number of Page Views) * 1000 |
| 24 | Query CTR (Query Click Through Rate) | Clicks / Queries |
| 25 | Query RPM (Query Revenue Per Mille) | (Estimated Earnings / Number of Queries) * 1000 |
| 26 | RPM (Revenue Per Mille) | (Estimated Earnings / Number of Page Views) * 1000 |
| 27 | TrueView VTR (TrueView View Through Rate) | TrueView Views / TrueView Ad Impressions |
| 28 | Conversion Ratio | Number of Conversions / Number of Clicks * 100 |
| 29 | CPA (Cost Per Acquisition) | Total Spent / Total Conversions |
| 30 | CR (Conversion Rate) | Total Conversions / Total Clicks * 100 |
| 31 | ROI (Return on Investment) | (Revenue – Cost) / Investment Cost * 100 |
| 32 | TROAS (Target Return on Ad Spend) | Value of the Product / Converted Click Cost * 100 |
| 33 | ACPC (Average Cost Per Click) | Ad Rank of the Person Below You / Your Quality Score + $0.01 |
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