This calculator measures the ROI (return on investment) of a CPC (cost per click) advertising buy, such as with Google’s or Yahoo!’s search listings.
Total monthly clicks from publisher
Get last month’s number from your Client Activity Report email to calculate last month’s ROI. You may also predict next month’s number to calculate next month’s potential ROI.
Estimated average CPC
CPC (cost per click) is the amount you pay a publisher for each click users make on your search listings. Get this number from your Client Activity Report email.
Your conversion rate is the percentage of visitors who come to your site from the publisher and convert into customers. You must supply this number from your own records. Conversion rates vary by company, but an average rate you can use as a test would be 2-3%. Enter a percent number, not a fraction. For instance, for 7% enter 7, not 0.07.
Average profit per conversion
Profit refers to the amount of money you earn from a sale. For example, if you sell a software package for $100 and it only cost you $10, your profit is $90. You must supply this number from your own records by estimating the average amount of profit you make from each conversion.