Google Ads Forumla – Lets Learn Some Formulas

Google Ad uses various formula to measure the results of a Ad campaign, here I have mentioned some formulas that can be used by marketers to measure their Media Campaigns,

Click-Through Rate (CTR)

CTR = (Clicks / Impressions) x 100%

Conversion Rate (CR)

CR = (Conversions / Clicks) x 100

Cost-Per-Click (CPC)

CPC = Total Cost / Number of Clicks

Cost Per Acquisition (CPA)

CPA = Cost/No of Acquisition

Return on Ad Spend (ROAS) 

ROAS = (Revenue from conversions / Total ad spend) x 100

Ad Spend

Ad Spend = Cost of Advertising

Impressions

Impressions = No of times Ad is shown

Conversions

Conversions = No of desired actions taken by users ( Purchase, form fills or app downloads)

Quality Score

Quality Score = (Relevance of ad to the keyword + Relevance of ad to the landing page) / Ad relevance to the search query

Cost Per Impression (CPM)

CPM = (Cost/Impressions) x 100

Cost Per Thousand Impression (CPM)

CPM = (Cost/Impressions) x 1000

Ad Click Through Conversion Rate (CTCR)

CTCR = (Conversions/Adclicks) x 100

Click Conversion Rate (CCR)

CCR = (Conversions/clicks) x 100

Cost per Lead (CPL)

CPL = Total Cost / Number of Leads

Lifetime Value (LTV)

LTV = (Average Revenue per User x Gross Margin) / (1 – Retention Rate)

Return on Investment (ROI) 

ROI = (Revenue – Cost) / Cost x 100

Search Impression Share

Search Impression Share = No of impressions your ad received / Estimated no of impressions you are eligible to receive) x 100

Cost Per View (CPV)

CPV = Cost/Views

Bounce Rate

Bounce Rate = (Bounces / Sessions) x 100