Thursday, July 28, 2011

Pay-Per-Click (PPC) Analytics - The Formulas

Here is a list of the top 10 metrics we use to assess if a client's pay-per-click campaign is going to render return on investment or ROI.  In my next posting, I'll share a sample plan using these metrics. 

Cost Per Visitor (C/V)
Revenue Per Visitor (R/V)
Margin Per Visitor (RPV - CPV = MPV)
Advertising-to-Revenue Ratio (CPV/RPV)

Exposures (E)
Click-Thrus (CT)
Click-Thru Rate (Clicks/Exposures) x 100
Branding/View-Thru Rate (BVT)
Cost-Per-Click (CPC)

Cost-Per-Conversion (CPC)

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