Some Quick Starts use advanced logic and add up scores that are displayed on a Results page. In addition to the how-to post with publishing instructions, we’ve created logic templates to make the process of organizing and defining that logic a bit easier. Below you’ll find a guide to the logic template as well as a link to download the logic template itself.
In order to calculate ROI and other key metrics, respondents will enter how much they spend on their PPC ad each month, their conversion rate, their cost-per-click and the average sale.
The example inputs in this logic template show a respondent who spends $10,000 per month on their PPC ad campaign and that sees a conversion rate of 5% for that campaign. This respondent spends $2 per click on their PPC ad and makes an average sale of $500.
After the respondent enters values for their monthly spend, conversion rate, cost-per-click and average sale, they will be taken to another page that shows the respondent their ROI, total clicks, number of sales, total revenue, profit and return on ad spend for their PPC advertising campaign.
The total clicks value is found by dividing the monthly spend by the cost-per-click. This would mean that our example respondent will see 5,000 total clicks based on their monthly spend and cost-per-click.
The number of sales is found by multiplying total clicks and the conversion rate. This would result in our example respondent making 250 sales.
Revenue is found by multiplying the number of sales and the average sale price. Our example respondent will see $125,000 in revenue using out example inputs.
Profit is found by subtracting monthly spend from revenue which results in $115,000 for our example respondent.
Return on ad spend (ROAS) is found by dividing revenue by monthly spend and then multiplying by 100. Using our example inputs, the example respondent would see an ROAS of $1,250.
The final output is our ROI value. ROI is found by dividing profit by monthly spend and then multiplying that value by 100. The ROI for our example respondent is $1,150.
For more information on how to work with the ROI Calculator creative, click here.