Whether you are estimating on the spot or checking a result somebody else gave you, the online marketing conversion calculator is the quickest way to get from visits, visits to leads, total cost, impressions, leads to customers, no. of orders per customer and revenue to cost per mille or thousand (cpm), return on investment (roi) and click-through-rate (ctr).
What Is the Online Marketing Conversion Calculator?
The online marketing conversion calculator takes visits, visits to leads, total cost, impressions, leads to customers, no. of orders per customer and revenue and turns them into cost per mille or thousand (cpm), return on investment (roi) and click-through-rate (ctr).
It is the kind of calculation you would otherwise do on the back of an envelope: mechanical, repeatable and easy to get subtly wrong without noticing.
How the Online Marketing Conversion Figure Is Built
Each result is calculated from the ones before it, so the working is fully visible. That matters when the answer is going to be quoted to somebody else and you need to be able to explain where it came from.
The figures are exactly as good as the assumptions underneath them. Check the rates, the periods and the tax treatment before you rely on the result.
Reading the Result Sensibly
A small change in an input can move the result by much more than you would expect, particularly where the calculation divides by one of the figures you supplied. That is worth understanding before you rely on a figure.
For anything that will be committed to, write the inputs down beside the result. A number you can reproduce is worth far more than one you cannot explain.
A Worked Example
Working through an example, with visits set to 10, visits to leads set to 5, total cost set to 2, the calculator returns cost per mille or thousand (cpm) of 20, and cost per click (cpc) of 0.2, and click-through-rate (ctr) of 0.1. Substitute your own figures and the same steps produce the same kind of answer.
Frequently Asked Questions
What do I need to work out cost per mille or thousand (cpm)?
Enter visits, visits to leads, total cost, impressions, leads to customers, no. of orders per customer and revenue. The calculator then works through the relationship and reports cost per mille or thousand (cpm), return on investment (roi) and click-through-rate (ctr).
What does the online marketing conversion actually calculate?
It takes visits, visits to leads, total cost, impressions, leads to customers, no. of orders per customer and revenue and converts them into cost per mille or thousand (cpm), return on investment (roi) and click-through-rate (ctr) using the standard relationship for this problem. Each step is applied in turn, so every output is traceable back to the numbers you typed in.
How should I enter visits?
Use the value you actually have, in the unit shown next to the field. Enter every value in the same unit system. The calculator assumes the figures you supply are consistent, so it cannot correct a mistake that happens before the calculation starts.
Do I have to fill in every field?
Only the fields a particular result depends on. If you leave one blank, the results that need it simply show a note instead of a number, and everything else still works.
Why does a small change in one value move the answer so much?
That happens when an output depends on a ratio, because dividing by a small number magnifies any change in it. Check the units first, then check whether the value you entered is in the range the relationship was designed for.