Online marketing metrics describes key basic marketing ROI calculations every marketer should know such as CPA, CPL, CPM etc; with some practical examples.

1. ONLINE
MARKETING
METRICS
Lauren Jones
Senior Campaign Manager
Make It Rain

2. Why do we need online marketing metrics?
In todays world of proving online marketing ROI
and hitting performance targets, it’s crucial to
know basic ROI calculations.

3. Return on Investment (ROI)
(Revenue [Minus] Investment) [Divided] by Investment
E.g.
(£20,000 - £1,500)/£1,500 = £12.33
Revenue
Investment
Investment
ROI
ROI shows you how much you get for every £ or $ you spend!

4. Cost Per Acquisition/Lead (CPA or CPL)
Total Cost of Campaign [Divided] by Number of Leads
E.g.
£1,500 ÷ 62 = £24.19
Cost
CPA / CPL
Leads

5. Cost Per Thousand (CPM)
Cost of an Ad [Multiplied] by 1000 [Divided] by Number
of Circulations (site placements)
E.g.
£1,500 x 1000 ÷ 250,000 = £6
Cost
Circulations
CPM

6. Conversion Rate (CR)
Number of Goals* [Divided] by Visits
E.g.
62 ÷ 12,000 x 100 = 0.52%
Visits
CR
Goals
*Goals can be anything from transactions, email sign-ups, brochure downloads, video
views etc.

7. Click-through Rate (CTR)
(Clicks [Divided] by Impressions) [Multiplied] 100
E.g.
(2,000 ÷ 40,000) x 100 = 5%
Clicks
Impressions
CTR

8. Thank You!
Questions or Comments?
Lauren Jones
Twitter:
@Lauren_Reports
Email:
lauren@make-it-rain.co.uk
Web:
http://lauren-jones.co.uk