As social media advertisers and marketers, you are going to be asked to provide data that shows the performance of your campaigns. It’s your responsibility to take this data and provide answers to the following:
- How does this ad performance stack up to others in our industry?
- What can we do to improve this ad?
- Was this a good return on investment?
Use the tool below to help you calculate the cost-per-click (CPC) and cost-per-thousand (CPM) for your ad campaign.
Cost Per Click (CPC) and Cost Per Thousand (CPM)
Cost Per Click (CPC)
Cost per click (CPC) is a paid advertising term where an advertiser pays a cost to a publisher for every click on an ad. CPC is also called pay per click (PPC).
How Is CPC Calculated?
The actual formula for cost per click is:
Cost per click (CPC) = advertising cost / number of clicks
Cost Per Mille or Cost Per Thousand (CMP)
CPM (cost per mille) is a paid advertising option where companies pay a price for every 1,000 impressions an ad receives. An “impression” refers to when someone sees a campaign on social media, the search engines or another marketing platform.
How Is CPM Calculated?
The actual formula for cost per mille is:
Cost per mille (CPM) = 1000 x advertising cost / impressions
CPC and CPM Calculator
Marketing Conversion and ROI
The online marketing conversion calculator below is a tool that lets you analyze the whole process of internet marketing and sales, from ad views to actual sales and return on investment. You can use it to simulate your marketing funnel and decide whether the online business you just set up will be profitable.
Return on investment (ROI)
Proving your ROI for organic social media can be tough, but paid social can be quite easy–especially when you can track sales. The third section of the online marketing conversion calculator below helps you determine whether you did in fact see a return on your investment. Simply type in the revenue you made in total on your products, and this calculator will help you calculate all of the statistics.
- Revenue: money you made on your online sales. It is not equal to the income (net profit) – you don’t have to subtract the costs of setting up the ad.
- ROI: return on investment, a percentage value that tells you how profitable your business is. The higher the ROI, the better. If it’s a negative value… Well, it seems like you need to rethink your business, as you are currently losing money!
- Revenue per click / per lead / per customer: these values are self-explanatory. They are a good measure of how profitable this business is compared to others.
How is ROI Calculated?
The actual formula for return on investment is:
ROI = [(Total Income – Investments) / Investments] x 100
Social Ad Campaign Return on Investment Calculator
Social Ad Conversion & Revenue Calculator