Online marketing conversion calculator
About this calculator?
This online marketing conversion calculator allows for the evaluation of the whole process of internet marketing and sales, from ad views to actual purchases and ROI. It may be used to test a marketing funnel and determine whether a new internet business can be lucrative.
Marketing funnel
An online ad can look amazing, however, most clients will most likely not look at it again. With the introduction of adblockers, they may never see it at all. Only a small percentage of people will click on the advertisement, but that does not imply that a marketing campaign will attract all of them. The vast majority of users will abandon a website and never return. Some will show interest in products/services and become prospective clients. However, it is not the end of the funnel; not all of them will opt to purchase a business’s products/services and become real clients.
Costs of internet marketing
Advertising on the internet is not free. Therefore, a substantial amount of investment may be required on advertising that appear on many websites at the same time. Deducing how much to pay per click or per client at each step of a marketing campaign can allow a business to better prepare an effective advertising strategy.
ROI
ROI is the process of attributing profit and revenue growth to the impact of marketing activities. A business can quantify the extent to which marketing initiatives, either holistically or on a campaign-by-campaign basis, contribute to revenue development by calculating return on marketing investment. Marketing ROI is commonly used to justify marketing expenditures and budget allocations for current and future campaigns and projects.
LTV
Calculating a client’s LTV is one technique to evaluate acquisition strategy and predict marketing expenses. LTV is an estimated forecast of the revenue associated to a long-term customer-product relationship. LTV can help to establish marketing expenditures and guarantees that they chase the most effective users by giving a running estimate of how much a given customer is likely to spend on that app.
The end-goal.
The end-goal of utilising this calculator is to allow you to rapidly assess how effective a particular marketing campaign is by assessing the number of funds invested in attracting visits, capturing leads and converting to clients. In turn, you will be able to determine the efficiency per each visit, lead and client gained whilst calculating the ROI and the assumption of how much a client could spend within your business.
Necessary terms.
Impressions: This is the number of users who saw an advertisement campaign but did not interact with it, such as clicking, downloading, or installing.
Visits: This is when a user visits a site from an external domain.
CTR: An abbreviation of ‘Click-Through Rate’ referring to the measurement of whether an ad was clicked on, representing the percentage of people who saw the ad and clicked on it.
Leads: This is a contact with a potential client/customer. Can also be called a ‘prospect’.
Clients: This is an individual or business that is an actual or prospective purchaser of services.
Visit to lead: This is when a user visiting a site connects/contacts an individual or business in regards to services/products.
Leads to clients: This is when the lead converts to purchasing a service.
CPM: An abbreviation of ‘Cost Per Mille’ referring to the cost of thousand impressions. Can also be called ‘Cost Per Thousand’ (CPT).
CPC: An abbreviation of ‘Cost Per Click’ referring to the cost an advertiser pays each time a website visitor clicks on an advert. Can also be called ‘Pay Per Click’ (PPC).
Cost per lead: This is the investment made to gain one lead.
Cost per client: This is the total cost of an advertisement campaign required to gain one customer.
Gain or loss: This is the indication of whether a marketing campaign has been profitable or unprofitable in generating revenue from the total cost of the marketing campaign.
ROI: An abbreviation of ‘Return On Investment’ referring to the percentage value that indicates how profitable a business is.
Revenue per click: This is how much funds were spent on a click.
Revenue per lead: This is how much funds were spent on a lead.
Revenue per customer: This is how much funds were spent on a customer.
Number of orders per customer: This is the total number of orders that one client makes for the whole time they are a client.
Customer LTV: An abbreviation of ‘Lifetime Value’ referring to how much a client will spend in a business in total.
Total revenue: This is the total gain assuming that each client will return to a business multiple times to make the total number of orders.
The formula.
Click-Through Rate
Click-Through Rate: CTR
Visits: VS
Impressions: IS
CTR = (VS / IS) * 100
Visit To Leads
Visit To Leads: VTL
Leads: LS
Visits: VS
VTL = ((LS / 100) / (VS / 100)) * 100
Leads To Client
Leads To Client: LTC
Clients: CS
Leads: LS
LTC = ((CS / 100) / (LS / 100)) * 100
Cost Per Mille
Cost Per Mille: CPM
Total Cost: TC
Impressions: IS
CPM = TC / IS
Cost Per Client
Cost Per Client: CPC
Total Cost: TC
Visits: VS
CPC = TC / VS
Cost Per Lead
Cost Per Lead: CPL
Total Cost: TC
Leads: LS
CPL = TC / LS
Cost Per Client
Cost Per Client: CPC
Total Cost: TC
Clients: CS
CPC = TC / CS
Gain Or Loss
Gain Or Loss: GOL
Revenue: RE
Total Cost: TC
GOL = RE - TC
Return Of Investment
Return Of Investment: ROI
Revenue: RE
Total Cost: TC
ROI = ((RE - TC) / TC) * 100
Revenue Per Click
Revenue Per Click: RPC
Revenue: RE
Visits: VS
RPC = RE / VS
Revenue Per Lead
Revenue Per Lead: RPL
Revenue: RE
Leads: LS
RPL = RE / LS
Revenue Per Client
Revenue Per Client: RPC
Revenue: RE
Clients: CS
RPC = RE / CS
Customer LifeTime Value
Customer LifeTime Value: CLTV
Revenue Per Client: RPC
Number Of Orders Per Client: NOOPC
CLTV = RPC * NOOPC
Total Revenue
Total Revenue: TR
Number Of Orders Per Client: NOOPC
Revenue: RE
TR = NOOPC * RE
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