Display Advertising Campaign ROI calculator; generates the expected return on investment from an CPM-based display advertising campaign. Models conversion and sale of an affiliate offer (or house product, if you are running them).Select one of the examples below to see the calculator in action!
| Campaign | |
|---|---|
| Audience | 400000 |
| CPM Bid | $2.50 |
| Banner CTR | 0.10% |
| Landing Page Traffic | 40000 |
| LP Convert % | 4.00% |
| Merchant Clicks | 1600 |
| Merch Convert % | 4.00% |
| Buyers | 64 |
| Cost Per Sale | $15.62 |
| Payout Per Sale | $20.00 |
| Commission | $1280 |
| Ad Budget | $1000 |
| Campaign Profit | $280 |
| Campaign ROI | 28% |
This CPM campaign ROI calculator analyzes the expected return on investment from a display ad campaign. Many high-end web publishers are able to offer marketers a large inventory of display advertising priced using the CPM model. This calculator analyzes the typical CPM campaign process to estimate how much traffic you will get and what you expected return on investment will look like. The CPM calculator is ideal for running what-if scenarios - estimating the impact of moving one of the elements of the model higher or lower. This amount is compared with your ad budget to assess if you were able to turn a profit. If you have already run a CPM campaign and are analyzing the results, check out our marketing roi calculator.
The traffic source is modeled using an advertising budget, the expected average cost per thousand banner impressions (CPM), and the expected banner click through rate (CTR). We divide the cost per impression into the budget to get a total audience size; we multiple the total audience by the click through rate to get the volume of expected visitors to our offer landing page. This is shown as landing page traffic.
We modeled traffic conversion rate as a multi-step process. Visitors arrive at the landing page, where they admire your offer in reverent bliss. As a result of your keen marketing insight and people skills, a certain percentage of this audience elects to continue on to the merchant's order page. Once at the merchant, some of these visitors make a purchase. We are then paid a commission.
The CPM campaign ROI calculator analyzes this data and creates a report which summarizes your CPM campaign profit and return on investment. This describes your expected return from the campaign.
The more observant members of the audience are raising their hand at this point to point out various other sources of complexity in the process. We run affiliate offers as well and here are some suggested solutions.