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When handling advertising campaigns on such Pay-Per-Click search engines as Google AdWords and Overture, you need tools for correct planning of the campaign expenditures and approximate revenue you will gather.

The program contains four ROI calculators:

Calculators

PPC ROI Calculator

This tool allows calculating ROI of your PPC campaign and plan your expenditures. Enter all necessary information in the following five fields:

• Campaign budget - the total amount of money you are planning to invest in your PPC campaign
• Number of impressions (optional) - if you are paying for displays of your ads (banners, text advertisements) provide the price you pay for each display (impression)
• Number of clicks - enter information on the number of clicks the users will make until the budget is exhausted.
• Number of sales - enter the number of items of your product the customers have bought
• Average profit per sale - enter the average profit you gain as the result of selling of one item of your product

In the lower section of the tab you can view the results of the calculations.

• Impression cost - if you have provided the information on the number of impressions, the program calculates the price of one impression
• Cost per conversion - displays information on how much you need to invest into one product purchase
• Click through rate (CTR) - the per cent ratio between the number of ad impressions and the number of clicks (displayed only if Number of impressions is specified).
• Profit or loss from campaign - the difference between the budget you have invested in the campaign and revenue generated by the campaign.
• Cost per click - the price of a single click on your ad
• Conversion rate - the percentage of visitors to a web site who complete a process designed by the web marketer. For example, if out of 100 visitors who respond to an ad by clicking on it and coming to a landing page, two go on to complete and submit a form, the conversion rate for that program is 2%.
• Revenue generated - the total sum generated by the campaign; the entire amount of income before any deductions are made
• Return on investment (ROI) - an amount expressed in percentage how successful an ad or campaign was in terms of what the returns (generally sales revenue) were for the money expended (invested).

Maximum CPC calculator

This tab allows allows deciding on the maximum price you can set for the click on your advertisement to maintain positive return on investment.

• How many of the visitors coming from PPC search engines actually turn into your customers? - provide average percentage of visitors that turn into customers on your site (conversion rate)
• What is your average profit from one buyer? - provide the average profit you gain from one purchase on your site
• What part of your profit do you want to spend on advertising? - provide the percentage of the profit you are going to invest into your further campaign.
• Your recommended maximum CPC (cost per click) - based on the information you have provided the program will calculate the maximum price you can bid on a PPC search engine. For example, if 10 visitors come to your site and ten percent of them (1 visitor) purchase your product at the price 50 dollars, then the maximum amount you can bid on will be 0.5 dollars. If you exceed this bid you are likely to get negative ROI.

Impressions Calculator

Using this calculator you will be able to find out the effectiveness of your banner or e-mail advertising campaign. Provide the following information in the first five fields:

• Campaign budget - the total amount of money you are planning to invest in your campaign
• Number of impressions or subscribers - enter the number of ad impressions or e-mail subscribers that will view your ad
• Number of visitors to your web site - enter the number of visitors that clicked your ads
• Number of sales - enter the number of product items that have been sold as the result of your campaign
• Average profit per sale - enter the profit you gain by selling one item of your product

In the your results section you can view the following numbers:

• Conversion rate - the percentage of visitors to a web site who purchased your products.
• Profit or loss from campaign - the money, received as the result of the campaign with the money invested in the campaign subtracted.
• Cost per impression or subscriber - the cost you pay for one banner display or one e-mail subscriber
• Cost per web site visitor - the cost you pay for one user clicking on your ad
• Revenue generated - the total amount of money gained as the result of the campaign
• Return on investment (ROI) - an amount expressed in percentage how successful an ad or campaign was in terms of what the returns (generally sales revenue) were for the money expended (invested).

CPM, CTR and CPC Converter

This calculator allows calculating one of the following values - CPM (cost per thousand impressions), CTR (click through rate) and CPC (cost per click) provided two other values are provided. For example, if you want to calculate cost per click in your campaign, you can do this by supplying CPM and CTR in the corresponding fields.

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