What could this ad spend return?
What these numbers mean
- Clicks a month
- 800
- Enquiries a month
- 32
- Cost per enquiry
- £62.50
Value a month
£12,800
Clicks are the spend divided by the cost per click. Enquiries are those clicks times the conversion rate. Each enquiry is treated as a sale, because the close rate is 100%.
Over a year, if this month held, that is £153,600 of value against £24,000 of spend.
Management fees and landing-page work are in this sum only when you include them in the spend.
Return on the spend is 540%. Value back for each pound of spend is 6.4×. That is arithmetic on your figures.
- Paid search
Campaigns run against cost per enquiry, with the landing page and the follow-up treated as part of the same job.
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Use this before you raise a paid search budget. Clicks are the monthly spend divided by the cost per click. Enquiries are those clicks times the conversion rate, and the value is what you say each one is worth. If that value is an enquiry rather than a sale, lower the close rate.
The service behind a live account is paid search. The page those clicks land on is conversion optimisation. For organic visits, use the SEO ROI calculator.
How to read the result
£2,000 a month at £2.50 a click is 800 clicks. At a 4% conversion rate that is 32 enquiries. At £400 each, and a close rate of 100%, the month is worth £12,800. Each pound of spend comes back as £6.40 of value, which is a 540% return on the spend. Those are the figures the sliders start on. Replace them with the account you actually have.
The year view simply multiplies that month by twelve. It holds only while the cost per click, the conversion rate and the value stay where you set them.
What to put in the boxes
- Spend is the media budget for the month. Add management fees and landing-page work if you want them inside the return.
- Cost per click is the average you are paying, or the average you are willing to test.
- The conversion rate is enquiries or sales divided by clicks, from the account or from the landing page.
- The value is what one of those results is worth to the business.
- The close rate stays at 100% when that value is already a sale. Lower it when the click produces an enquiry and only some of those become customers.
If the question is organic visits rather than paid clicks, the SEO ROI calculator uses the same kind of sum from visits.