This calculator
measures your ROI (return on investment) if you
are using the CPM (cost per thousand)
impressions advertising model common to most
banner and button ad campaigns.
Total monthly impressions from your CPM
advertising
This section of the tool lets you put in last
month's number to calculate last month's ROI.
You can also project next month's number to
calculate next month's potential ROI.
Estimated average CPM
Here you can put in last month's number to
calculate last month's ROI. You can also project
next month's number to calculate next month's
potential ROI.
Click-through rate
Your click-through rate is the percentage of
actual click-throughs per number of impressions.
For example, if you pay for 5,000 impressions
and get 50 click-throughs, your click-through
rate would be 1%. Enter a percent number, not a
fraction. For instance, for 10% enter 10, not
0.10.
Conversion Rate
Your conversion rate is the percentage of
visitors who come to your site from a banner or
button and convert into customers, for instance,
by making a purchase. Conversion rates vary by
company, but an average conversion rate you can
use as a test would be 2-3%. Enter a percent
number, not a fraction. For instance, for 10%
enter 10, not 0.10.
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.
