Advertising Campaign ROI Calculator

Impressions per Campaign:

\\[ I_i = \frac{C_i – F_i}{\text{CPI}_i} \\]

Converted Customers:

\\[ N_i = A_i \cdot V_i \cdot E_i \\]

Revenue per Campaign:

\\[ R_i = N_i \cdot \text{CLV} \cdot \min\left(1, \frac{D_i}{12}\right) \\]

ROI per Campaign:

\\[ \text{ROI}_i = \frac{R_i – C_i}{C_i} \cdot 100 \\]

Total Cost:

\\[ C_{\text{total}} = \sum C_i \\]

Total Revenue:

\\[ R_{\text{total}} = \sum R_i \\]

Total ROI:

\\[ \text{ROI}_{\text{total}} = \frac{R_{\text{total}} – C_{\text{total}}}{C_{\text{total}}} \cdot 100 \\]

Effectiveness Score:

\\[ S = \min\left(100 \cdot \frac{\sum (R_i \cdot E_i \cdot A_i / A_{\text{max}})}{C_{\text{max}}}, 100\right) \\]

Where:

• \\( I_i \\): Impressions for campaign \\( i \\) (thousands)
• \\( C_i \\): Total cost of campaign \\( i \\) (USD)
• \\( F_i \\): Fixed cost of campaign \\( i \\) (USD)
• \\( \text{CPI}_i \\): Cost per thousand impressions (USD)
• \\( N_i \\): Number of converted customers
• \\( A_i \\): Reach (audience size)
• \\( V_i \\): Conversion rate (decimal)
• \\( E_i \\): Effectiveness factor (Social Media: 1.0, Print: 0.7, TV: 0.9, Email: 0.8, Billboard: 0.6)
• \\( R_i \\): Revenue for campaign \\( i \\) (USD)
• \\( \text{CLV} \\): Customer lifetime value (USD)
• \\( D_i \\): Campaign duration (months)
• \\( \text{ROI}_i \\): ROI for campaign \\( i \\) (%)
• \\( C_{\text{total}} \\): Total cost (USD)
• \\( R_{\text{total}} \\): Total revenue (USD)
• \\( \text{ROI}_{\text{total}} \\): Total ROI (%)
• \\( S \\): Effectiveness score (%)
• \\( A_{\text{max}} \\): Maximum reference reach (100000)
• \\( C_{\text{max}} \\): Maximum reference cost (100000 USD)

\\[ I_{\text{Social}} = \frac{5000 – 1000}{5} = 800 \ \text{thousand impressions} \\] \\[ N_{\text{Social}} = 10000 \cdot 0.05 \cdot 1.0 = 500 \ \text{customers} \\] \\[ R_{\text{Social}} = 500 \cdot 100 \cdot \min(1, \frac{3}{12}) = 500 \cdot 100 \cdot 0.25 = 12500 \ \text{USD} \\] \\[ \text{ROI}_{\text{Social}} = \frac{12500 – 5000}{5000} \cdot 100 = 150 \ \% \\] \\[ C_{\text{total}} = 5000 \ \text{USD} \\] \\[ R_{\text{total}} = 12500 \ \text{USD} \\] \\[ \text{ROI}_{\text{total}} = \frac{12500 – 5000}{5000} \cdot 100 = 150 \ \% \\] \\[ S = \min\left(100 \cdot \frac{12500 \cdot 1.0 \cdot 10000 / 100000}{100000}, 100\right) = \min(12.5, 100) = 12.5 \ \% \\]

\\[ I_{\text{Social}} = \frac{10000 – 2000}{5} = 1600 \ \text{thousand impressions} \\] \\[ N_{\text{Social}} = 20000 \cdot 0.1 \cdot 1.0 = 2000 \ \text{customers} \\] \\[ R_{\text{Social}} = 2000 \cdot 150 \cdot \min(1, \frac{6}{12}) = 2000 \cdot 150 \cdot 0.5 = 150000 \ \text{USD} \\] \\[ \text{ROI}_{\text{Social}} = \frac{150000 – 10000}{10000} \cdot 100 = 1400 \ \% \\] \\[ I_{\text{Print}} = \frac{8000 – 1500}{10} = 650 \ \text{thousand impressions} \\] \\[ N_{\text{Print}} = 15000 \cdot 0.03 \cdot 0.7 = 315 \ \text{customers} \\] \\[ R_{\text{Print}} = 315 \cdot 150 \cdot \min(1, \frac{4}{12}) = 315 \cdot 150 \cdot 0.3333 \approx 15750 \ \text{USD} \\] \\[ \text{ROI}_{\text{Print}} = \frac{15750 – 8000}{8000} \cdot 100 = 96.875 \ \% \\] \\[ C_{\text{total}} = 10000 + 8000 = 18000 \ \text{USD} \\] \\[ R_{\text{total}} = 150000 + 15750 = 165750 \ \text{USD} \\] \\[ \text{ROI}_{\text{total}} = \frac{165750 – 18000}{18000} \cdot 100 \approx 820.8 \ \% \\] \\[ S = \min\left(100 \cdot \frac{(150000 \cdot 1.0 \cdot 20000 / 100000) + (15750 \cdot 0.7 \cdot 15000 / 100000)}{100000}, 100\right) \approx \min(31.65, 100) = 31.65 \ \% \\]

\\[ I_{\text{Social}} = \frac{20000 – 3000}{5} = 3400 \ \text{thousand impressions} \\] \\[ N_{\text{Social}} = 30000 \cdot 0.15 \cdot 1.0 = 4500 \ \text{customers} \\] \\[ R_{\text{Social}} = 4500 \cdot 200 \cdot \min(1, \frac{6}{12}) = 4500 \cdot 200 \cdot 0.5 = 450000 \ \text{USD} \\] \\[ \text{ROI}_{\text{Social}} = \frac{450000 – 20000}{20000} \cdot 100 = 2150 \ \% \\] \\[ I_{\text{Print}} = \frac{15000 – 2000}{10} = 1300 \ \text{thousand impressions} \\] \\[ N_{\text{Print}} = 20000 \cdot 0.05 \cdot 0.7 = 700 \ \text{customers} \\] \\[ R_{\text{Print}} = 700 \cdot 200 \cdot \min(1, \frac{4}{12}) = 700 \cdot 200 \cdot 0.3333 \approx 46666.67 \ \text{USD} \\] \\[ \text{ROI}_{\text{Print}} = \frac{46666.67 – 15000}{15000} \cdot 100 \approx 211.1 \ \% \\] \\[ I_{\text{TV}} = \frac{10000 – 1500}{8} = 1062.5 \ \text{thousand impressions} \\] \\[ N_{\text{TV}} = 25000 \cdot 0.08 \cdot 0.9 = 1800 \ \text{customers} \\] \\[ R_{\text{TV}} = 1800 \cdot 200 \cdot \min(1, \frac{3}{12}) = 1800 \cdot 200 \cdot 0.25 = 90000 \ \text{USD} \\] \\[ \text{ROI}_{\text{TV}} = \frac{90000 – 10000}{10000} \cdot 100 = 800 \ \% \\] \\[ C_{\text{total}} = 20000 + 15000 + 10000 = 45000 \ \text{USD} \\] \\[ R_{\text{total}} = 450000 + 46666.67 + 90000 = 586666.67 \ \text{USD} \\] \\[ \text{ROI}_{\text{total}} = \frac{586666.67 – 45000}{45000} \cdot 100 \approx 1203.7 \ \% \\] \\[ S = \min\left(100 \cdot \frac{(450000 \cdot 1.0 \cdot 30000 / 100000) + (46666.67 \cdot 0.7 \cdot 20000 / 100000) + (90000 \cdot 0.9 \cdot 25000 / 100000)}{100000}, 100\right) \approx \min(161.83, 100) = 100 \ \% \\]