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Google Ads Calculation Formulas

1. CPC: Cost-per Click
Calculation: Total Spend / Total Number Of Clicks

2. CPM: Cost- Per Thousand Impressions
Calculation: (Total Spend / Total Number Of Impressions) x 1000

3. CTR: Click-through Rate

Calculation: Total Clicks / Total Impressions

4. CPA: Cost Per Acquisition
Calculation: Total Spend / Total Conversions

5. CR: Conversion Rate: (CVR)
Calculation: (Total Conversion / Total Clicks) X 100

6. ROI: Return On Investment
Calculation: (Revenue – Cost) / Investment Cost X 100 (for %)

Cost Per Aquisition (CPA)
Cost / Conversions = CPA
Cost Per Engagement (CPE)
Cost / Engagement = CPE
Return on ad Spend (ROAS)
Revenue / Cost = ROAS
Average Cost of Sale (ACOS)
Cost / Revenue = ACOS
Impressions to conversion percentage
Conversions / Impressions = impressions to conversions %
Revenue per click
Revenue / Clicks = revenue per click
Revenue per impression
Revenue / Impressions = revenue per Impression
Average order value (AOV)
Revenue / Conversions = AOV
Cost per view (CPV formula)
Cost / Views = CPV
 Impression Share
Impressions / total available impressions = Impression Share
Bid based on a CPA target
CVR * CPA Target = maximum CPA bid
Bid based on ROAS target
(CVR * AOV) / ROAS Target = maximum ROAS bid
Bid based on ACOS target
(CVR * AOV) *ACOS Target = maximum ACOS bid
Extra traffic from increasing budget to remove Lost IS (Budget)

Impressions * Lost IS (Budget) = Impressions lost

Impressions lost due to budget * CTR = Clicks lost

Clicks lost due to budget * CPC = money not spent

Clicks lost due to budget * CVR = Conversions lost

Conversions lost * AOV = Revenue lost
Performance if bids are increased to remove Lost IS (Rank)
Impressions * (1 + Impression Share lost due to Rank) = Total available impressions
Old CPC * (1 + Impression Share lost due to Rank) = new CPC
Use New CPC, CVR and AOV to calculate new cost, conversions and revenue
Use ROAS and/or CPA formulas to calculate new CPA and/or ROAS
Project conversions, revenue, CPA and ROAS from clicks, CPC, CVR and AOV

Clicks * CVR = projected Conversions
CPC * Clicks = Projected Cost
Projected Conversions / Projected Cost = projected CPA
Projected Conversions * AOV = projected Revenue
Projected Revenue / Projected Cost = projected ROAS
Projections with an allocated budget
Budget / CPC = Clicks
Clicks * CVR = Conversions
Cost / Conversions = CPA
Conversions * AOV = Revenue
Ad rank
Quality Score * Maximum bid = Ad Rank
New CPC if Quality Score is improved
Current Ad Rank / new Quality Score = New CPC
Project month performance partway through the month
last 7 days cost / 7 = last 7 days daily average cost
Month so far cost + (number of days remaining in month * last week daily average cost) = Monthly projected cost
Monthly CVR change due to seasonality
Current month CVR from last year / last month CVR from last year = percentage difference in CVR
Percentage difference in CVR * Last month CVR = this month’s projected CVR
Bid modifier for device/location/audience/gender/age
(specific segment CVR / Total CVR) /  percentage bid adjustment for specific segment
Convert CPM to price per impression
CPM cost / 1,000 = cost per impression

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