PPC Formula Cheat Sheet

PPC formula on blackboard

You can’t manage a PPC account without dabbling in a bit of Maths. So, we’ve created this handy little PPC formula cheat sheet to make things a little speedier for you. It contains 17 of the most commonly used calculations, divided into 6 main categories:

  • Traffic
  • Bidding
  • Conversions
  • Leads
  • eCommerce
  • Video

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PPC-formula-cheat-sheet

1) Click through rate % = clicks divided by impressions, times by 100

2) Avg. cost per click £/$ = ad spend divided by clicks

3) Search impressions share = the number of impressions received divided by the number of impressions you’re eligible to receive.

4) Maximum bid for your CPA target = target CPA times by your conversion rate (can be calculated at Ad Group or Keyword level)

5) Mobile bid modifier % = mobile conversion rate divided by your overall conversion rate, take away 1 and then times by 100

6) Geo/location bid modifier % = geo/location conversion rate divided by your overall conversion rate, take away 1 and then times by 100

7) Cost per conversion £/$ = ad spend divided by number of conversions

8) Click conversion rate % = conversions divided by clicks, times by 100

9) Cost per lead £/$ = ad spend divided by number of leads

10) Lead conversion rate % = number of lead divided by clicks, times by 100

11) Profit margin % = profit margin £/$ divided by total revenue, times by 100

12) Return on ad spend % = total revenue take away ad spend, divided by ad spend, times by 100

13) Revenue per impressions £/$ = total revenue divided by impressions

14) Revenue per clicks £/$ = total revenue divided by clicks

15) Revenue per conversion £/$ = total revenue divided by conversion

16) Video view rate % = total views divided by impressions, times by 100

17) Avg. cost per view £/$ = ad spend divided by total views