8 PPC Formulas That Will Ease Your Life

8 PPC Formulas That Will Ease Your Life

Learn some Math they say, it would be useful they say.

And it is, especially for Amazon PPC calculations.

Here are 8 formulas that will ease your life!

Click-through-rate (CTR) = (Total Clicks/Total Impressions) x 100

• this metric shows how engaging your ad is for a specific keyword.

Conversion rate (CVR) = (Total Conversions/Total Clicks) x 100

• how many of your ads successfully lead to sales

Advertising Cost of Sales (ACoS) = (Total Ad Spend/Total Sales Revenue) x 100

• the cost of your ads

Total Advertising Cost of Sales (TACoS) = Total Ad Sales/Total Revenue Sales) x 100

• your total ad spend compared to the total revenue you get (including organic sales)

Return on Ad Spend (RoAS) = Total Sales/Total Ad Spend

• the revenue you earned for each $ spent on advertising

Cost Per Acquisition (or Cost Per Sale) (CPA) = Total Ad Spend/Total Conversions. We can separate 2 different types of CPA.

• when talking about PPC ONLY - CPA measures the ad spent for 1 PPC sale (including organic sales)
  
  
• the general metric measures the total ad spend for 1 sale.

Cost-Per-Click (CPC) = Total Ad Spend/Total Clicks

• how much would you pay when customers click on your ad.
  
  

Breakeven ACoS = Cost of Goods Sold + Advertising Cost per Sale/Sale price

• the ACOS percentage at which the business is not making a profit or a loss (working on 0).

AMZ Bees, FZE LLC