Google Adwords Formula from Basic to Advanced

Adwords Formula’s:

CTR(Click through rate) = clicks/impressions*100
CPM = Cost/1000 impressions
CPA= Total cost(per acquisition)/total no. of leads
Converion rate = Conversion/Clicks
Total cost = Click * CPC
Adrank = CPC * (Quality Score + Ad-Extension)
Quality Score = depends on – CTR, Landing page, Ad relevance
Actual QS = Sum( (sum of QS * impression)/ sum of impressions)
Actual CPC = (Ad rank below competitor/Quality Score of your) +0.01
ROAS (Return on ad spend) = Revenue(or conversion value)/ad spends
ROI = (Conversion- cost)/cost of ad spend
cost = conversion rate * profit margin
Max CPC = (Avg Conversion Value/desired ROAS)*conversion rate
or
Max CPC = (total conversion/clicks)/desired ROAS
Ad CTR = Clicks / Ad impressions
Ad request CTR = Clicks / Ad requests
Ad request RPM = (Estimated earnings / Number of ad requests) * 1000
Ad RPM = (Estimated earnings / Ad impressions) * 1000
CTR = Clicks / Impressions
Coverage = (Ad requests that returned ads / total ad requests) * 100
Delivery rate = Ad impressions / Ad requests
Drop-off rate = Number of impressions / Matched requests *100
Impression RPM = (Estimated earnings / Impressions) * 1000
Page CTR = Clicks / Page views
Page RPM = (Estimated earnings / Number of page views) * 1000
Query CTR = Clicks / Queries
Query RPM = (Estimated earnings / Number of queries) * 1000
RPM = (Estimated earnings / Number of page views) * 1000
TrueView VTR = TrueView Views / TrueView ad impressions
Conversion ratio = No of conversions/ No of clicks*100
CPA = Total spent/ Total conversions
CR = Total conversions/ Total clicks*100
ROI = Revenue – Cost/ Investment Cost*100
TROAS = Value of the product/ Converted click cost*100
ACPC = Ad rank of the person below you/ Your quality score + $0.01

 

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