How to calculate marketing budgets?

A.k.a. Marketing Profits Calculator

How to calculate marketing budgets?

  1. Make sure you have the right business goal.
     

  2. Then you should get all the needed data, like predicted Impressions, Click-Through Rate (CTR), Cost Per Thousand Impressions (CPM).

    If you want to calculate direct business impact, you should also include Conversion Rate, Average Order Value, Average Margin, and Other Costs.
     

  3. Calculate predicted Marketing Budgets needed for your campaign and use it for planning. 

How to use Profits Calculator?

Media Buying and Planning can take a lot of time and will not always bring the desired results. This is why we created this simple calculator as a starting point for you.

Simply input all the data and you will get not only the recommended budget but also predicted Revenues & Profits.

Results can be sent directly to your e-mail and our e-mail will be included in the CC, so you can easily reply to us and we will get right back to you.

Calculator Metrics Explained

Just in case you would have struggled with any metrics:

  • Predicted Impressions: Expected Impressions over a specified time period. If you can only see # users, multiply it by frequency (recommend to use frequency 3 per day for calculation),
     

  • CTR: Click-through rate, calculated as Click / Impressions. If you can't predict it, use an educated guess.
     

  • CPM: Cost per Thousand Impressions. Media Buying offers you most of the time guaranteed CPMs. If you don't have one, you can use past CPMs for prediction.
     

  • Conversion Rate: You can easily find this information in the analytics tool of your choice, most likely Google Analytics.
     

  • Average Order Value (AOV): Can be calculated as Revenue / # Orders.
     

  • Average Margin: Data needed from ERP or CRM.
     

  • Other Cost: You can include any additional costs

Feel free to contact us with any questions or issues you may experience.

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