Digital Marketing Math: All the Formulas You Need to Know on One Page

Digital marketing math can help you improve your email marketing
campaigns and online marketing initiatives. By getting a good
handle on your analytics and email metrics, you can improve your
digital marketing campaigns using real data instead of
guesswork.

Math not your thing? Don’t worry.

Digital marketing math is relatively simple and we’re here to
help.

Basics of digital marketing math

Even with the most important digital marketing math formulas on
this page, you don’t need advanced math skills to use them.

Most of the time, these metrics will be calculated for you by
various analytic programs and software services. For online
advertising and analytics for your own website, you’ll probably
use Google Analytics.

For email campaigns, Campaign Monitor offers a full suite of
detailed
analytics
:


For email campaigns, Campaign Monitor offers a full suite of detailed analytics

Image Source: Campaign
Monitor
 

So, while you don’t need to calculate all these metrics
yourself, understanding how they’re calculated can help you
better understand what they actually mean. Let’s be honest, even
the most experienced digital marketers often have a fuzzy grasp on
the numbers.

So, understanding how these analytics are calculated can help
you be much more effective as a digital marketer.

Common digital marketing math formulas

Here are some of the most common and helpful digital marketing
math formulas. We have grouped these marketing math formulas into
four categories: online advertising, website analytics, email
marketing, and customer engagement/buzz.

Remember the basic operands:

+ add
– subtract
* multiply
/ divide

1. Online advertising digital marketing formulas Cost per
impression (CPM)

COST / 1000 IMPRESSIONS

An impression is how many times an advertisement is displayed on
a web page or search engine. It does not include clicks. You might
get a ton of impressions with few clicks. So, depending on where
you’re advertising, it might be more affordable to pay per click
vs. by impression.

Cost per view

COST / VIEW

Cost per view is like cost per impression but relates more to
video ads (e.g. YouTube ads).

Click-through rate

CLICKS / IMPRESSIONS

This calculation actually tells you whether your online
advertisement is working. The more clicks you have per impression,
the better. To improve your ad CTR, improve your ad design and/or
better target the delivery to the proper segments.

Conversions per impression

CONVERSIONS / IMPRESSIONS

This metric tells you how many actual sales you get per
impression.

Conversion rate

CONVERSIONS / CLICKS

This tells you how many conversions you’re getting per click.
This is a crucial metric.

Revenue per click (RPC)

REVENUE / CLICKS

Understanding how much money you bring in for each click helps
you plan your ad spends accordingly. Higher revenue per clicks
would justify perhaps investing in an ad campaign even if the
click-through rate wasn’t that high, as long as those few clicks
convert.

2. Marketing math for website analytics Page views per
session

# OF PAGE VIEWS / 1 SESSION

How engaged are people with your website? A session refers to a
single time your customer or prospect spends looking at your
website.

Percentage of new browsing sessions

# NEW BROWSING SESSIONS / # TOTAL BROWSING
SESSIONS

You might want to calculate this metric if you want to know
about your new customer growth. If your ads are bringing back the
same people over and over again (and they aren’t buying anything
new), that’s not a good thing.

Average time spent on a landing page

TOTAL TIME SPENT BY ALL VISITORS / TOTAL #
VISITS

Are your landing pages actually engaging your customers? Or are
they causing a high bounce rate?

By finding out how much time is spent on your landing page—the
page you’re directing customers to—you can get an idea of
what’s working. Of course, actual conversions count, too.

Bounce rate (per page)

VISITORS LEAVING AFTER VIEWING ONE PAGE / TOTAL
VISITORS

There are two main ways to calculate bounce rate. One is based
on whether your visitor stays on your website (by clicking another
internal link).

The other (which you need Google Analytics or some other
software for) calculates how much time is spent on a page.

Exit rate

USERS LEAVING SITE / TOTAL # USERS VISITING
PAGE

This calculation is related to the bounce rate, but it’s not
quite the same. This metric informs which pages are more likely to
encourage exits from the website.

Buy per detail rate

# PRODUCTS PURCHASED / TOTAL PRODUCT DESCRIPTION VIEWS
FOR THAT PRODUCT

Are your visitors spending a lot of time looking at product
descriptions before purchasing? This metric can tell you whether
your customers are looking for that specific information.

Cart per detail rate

# PRODUCTS ADDED TO CART / TOTAL PRODUCT DESCRIPTION
VIEWS

Similar to the above metric, this formula tells you about the
time spent researching before an item is placed into the shopping
cart.

Cart abandonment rate

1 – (# PEOPLE WHO START CHECKOUT / # PEOPLE WHO ADDED
TO CART)

Are people adding things to their shopping cart and then
quitting? If this number is too high, two things might be
happening: One, your shopping cart system is too complicated. Two,
your pricing or shipping isn’t transparent enough.


Are people adding things to your shopping cart and then quitting? If this number is too high, two things might be happening: One, your shopping cart system is too complicated. Two, your pricing or shipping isn’t transparent enough.

Image Source:
Pixabay

Items per purchase

# ITEMS / # PURCHASES

Get a better idea of how to bundle and tailor purchases with the
items per purchase metric.

3. Email analytics and digital marketing math

Email marketing metrics can help you craft and improve your drip
marketing campaigns and email newsletters. Use some of the
following with your online marketing initiatives. Remember,
Campaign Monitor does all this work for you:

Email metrics are multiplied by 100 to get a percentage.

Bounce rate

BOUNCES / EMAILS SENT X 100

If your emails are bouncing too much, you need to clean up your
list.

Email open rate

TRACKED OPENS / TOTAL DELIVERED (NON-BONCE) X
100

How many people are actually opening your emails? If they
aren’t, you might want to work on your subject lines.

Email click-through rate

CLICKS / EMAILS SENT X 100

You want people to click on the links in your emails. Shoot for
an email click-through rate of 4%, depending on your industry
average.

Email CTOR (click-to-open) rate

CLICKS / OPENED EMAILS x 100

The CTOR rate is an even more important metric than the
click-through rate. It tells you how effective your emails actually
are once they’re read.

Email conversion rate

CONVERSIONS / EMAILS DELIVERED X 100

Ultimately, you want your email marketing messages to turn into
sales. Find out how you’re doing with by measuring your email
conversion rates.

4. Customer engagement and social media analytics

With customer engagement and social media analytics, you may
need to set up your own spreadsheets and keep track of things
manually. If you really don’t want to bother with the digital
marketing math, you can use programs like Buffer,
which calculate many social media metrics for you. Plus, you can
integrate with Campaign Monitor via
Zapier
.


With customer engagement and social media analytics, you may need to set up your own spreadsheets and keep track of things manually.

Image Source:
Pixabay

Engagement rate

ENGAGED USERS / REACHED USERS * 100

Engaged users are users that interact with your social media
posts in some manner, such as liking or commenting.

Social media buzz market share

SOCIAL MEDIA USERS TALKING ABOUT YOUR BRAND / SOCIAL
MEDIA USERS TALKING IN YOUR INDUSTRY

This might be a little challenging to calculate, but with some
research, you might get an idea of what your company’s actual
“buzz” is.

Average likes per social media post

ADD UP LIKES PER X POSTS / X POSTS

How many likes are you getting for each social media post? If
you hear crickets, then you should investigate why your content
isn’t connecting with your audience.

Average shares per social media post

ADD UP SHARES PER X POSTS / X POSTS

Likes are important, but shares are even better. Are your posts
being shared?

Following/follower ratio

# FOLLOWING / # FOLLOWERS

You can use this metric to inform how many people you’re
following vs. how many are following you.

Negative feedback rate

HIDDEN-DOWNVOTED-REPORTING AS SPAM / REACHED
USERS

If people are downvoting or reporting your posts as spam on a
regular basis on social media platforms, you’re in some serious
trouble. Rethink your content marketing strategy.

Wrap up

To summarize, digital marketing math can help you see what
you’re doing right and doing wrong with your online advertising
campaigns. You’ll want to track your metrics in four basic
areas:

  • online advertising
  • website analytics
  • email marketing
  • customer engagement/social media buzz

The more you know, the more you can improve your digital
outreach.

Campaign Monitor provides all the email metrics you need
for your digital marketing. Contact us for more
information.

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Digital Marketing Math: All the Formulas You Need to Know on One
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Digital Marketing Math: All the Formulas You Need to Know on One Page