In a previous blog post, we discussed some digital marketing terms & definitions. With that background knowledge, you’re ready to dive into some of the essential formulas for digital marketers. Don’t worry – we’ll keep it simple! These are formulas you need to know in order to successfully pass your Google Adwords exams & better understand Google Analytics as well.
There aren’t many formulas (this isn’t physics), but the key formulas in digital marketing are absolutely crucial. Here is a quick cheat sheet to five formulas everyone in digital marketing should know:
CPC | Cost Per Click | Cost/Clicks |
CTR | Click-Through Rate | Clicks/Impressions |
Conversion Rate | Conversion Rate | Conversion/Clicks |
Return On Investment | ROI | (Gain from Investment – Cost of Investment) / Cost of Investment |
Percent Change | % Change | (Old – New) / Old |