document.xls

Prepared by Dave Chaffey 04/07/2023 Page 1

Home Introduction to E-marketing spreadsheet models developed by Dr Dave Chaffey

I have developed these spreadsheets to help marketers plan their returns from digital marketing campaigns by developing more specific goals.

I hope you find them useful. If You have any comments or suggestions please contact me at the sites below.

Dave's company site offering best practice articles, consultancy and training

A simple model at the level of whole site showing conversion of audiences into leads and outcomes. Includes profitability.

Similar to first model, this enables top-level comparison of referrals between online and offline channels.

A simple way of assessing potential improvements to site returns for an e-commerce site across the customer lifecycle

A separate spreadsheet for assessing the digital marketing capabilities of an organisation as part of strategy development.

Smart Insights

www.twitter.com/davechaffey Dave uses Twitter for sharing tips and tools across of all digital marketing (esp analytics, search, email marketing and conversion optimisation)

1.Web marketing model

2.Multichannel marketing model

3.Media mix model - impression Defines conversion model for distinct digital media channels based on number of impressions serves and costs/responsiveness of media. Doesn't include profitability

4.Media Mix model - Budget E.G. Defines conversion model for distinct digital media channels based on a % budget split between channels and costs/responsiveness of media. Doesn't include profitability

5.Media Mix model - Vertical Defines conversion model for distinct digital media channels based on a % budget split between channels and costs/responsiveness of media. Also include profitability, so typically best for using as starting point in assignments where margin and revenue per sale (average order value) given.

6. E-mail objective setting A simple model for email campaigns for modelling worst and best case campaign response based on intermediate response stages including delivery, open, clickthrough, form response and final conversion from lead to sale.

7. Ad revenue model Designed for site owners to help them forecast revenue based on pages served with different types of ad units including affiliate (CPA), impresssion-based (CPM) or cost-per-click units on each page (assumes same across site)

8. Incremental profitability model

Digital Marketing benchmarking

DISCLAIMERThis spreadsheet is provided in good faith for modelling budgets and performance for E-marketing. Smart Insights (Marketing Inteligence) Limited cannot be held responsible for the consequences of any errors in, or misinterpretation of, the spreadsheet models or for any actions taken as a result of using this spreadsheet. Please notify me of formula errors, so that I can update. Thanks, Dave

document.xls

Prepared by Dave Chaffey 04/07/2023 Page 2

Spreadsheet created by Internet marketing author and commentator Dave Chaffey of Smart Insights

Sign up for the latest alerts on digital marketing best practice at:

www.smartinsights.com

E-commerce investment appraisal model 1.Web marketing model

© Marketing Insights Limited 2002 www.marketing-insights.co.uk <Improving performance through marketing intelligence>

Model Scenario 1 Scenario 21,000,000 250,000

Attraction effciency 20.00% 5.00%

200,000 12,500

Site conversion efficiency 10.00% 5.00%

20,000 625C

Lead conversion efficiency 60.00% 40.00%

12,000 250

Offline sales multiplier 1.0 1.0Repeat customer multiplier 1.0 1.0Average value per outcome £50 £30

Cost of acquisition per visitor (Average Cost per click, CPC) £0.30 £2.00Total visitor acquisition cost £60,000 £25,000Gross profit margin 15.0% 20.0%Total cost of goods sold £510,000 £6,000Total variable costs £570,000 £31,000Other brand and marketing costs £2,000 £2,000Site development/maintenance costs £10,000 £20,000Other operational costs £5,000 £10,000Total fixed costs £17,000 £32,000Total costs £587,000 £63,000

Total revenue £600,000 £7,500Profitability £13,000 -£55,500Return on Investment 2.2% -88.1%Revenue per customer £50.00 £30.00Cost of customer acquisition (CPA) £5.00 £100.00

Home

REACH of web site

Web site VISITORS

Number of required OUTCOMES

Blue cells = input variables - vary these for 'what-if' analysis

How to use this spreadsheet1. Use for objective setting - vary reach and different types of efficiency using goal seeking to calculate required number of outcomes (key objective). 2. Use for what-if scenarios for different assumptions about efficiency - the example shows 2 different scenarios from best case to worst case. Sensitivity analysis of different variables can also be conducted. Need to perform for different media and products!3. Use to evaluate proposals from different providers - check all cost components are present and compare quotes for each column.4. Use post-launch to compare actual budget with estimated.

Notes. A. Position mouse over cell to read the comment for cells with red triangles. B. This model is based on a single year only. A model integrated over several years is needed for detailed investment appraisal.C. This calculation does not allow for viral effects or reminders which may increase number of respondents - can increase CTR to allow for this.D. If negative amounts for nSent, CTR or completion are suggested the campaign is unrealistic in terms of input varaibles e.g. cost sent, value per outcome.

Web marketingefficiency

characteristics

E-commerce performance

measures

Orange cells = output variables (calculated - do not overtype)

DISCLAIMERThis spreadsheet is provided in good faith for modelling e-commerce investments. Smart Insights (Marketing Inteligence) Limited cannot be held responsible for the consequences of any errors in, or misinterpretation of, the spreadsheet models or for any actions taken as a result of using this spreadsheet. Please notify me of formula errors, so that I can update. Thanks.

Variablecosts

Fixedcosts

LEADS generated

Web marketing model - A simplifed version of the Objective setting spreadsheet, but without the 'What if' modelsSee Chapter 4 of Dave Chaffey's Total E-mail Marketing for more details on customer acquisition using the web and e-mailE-mail campaign spreadsheet designed by Dave Chaffey of Marketing Insights (www.marketing-insights.co.uk)

E-commerce investment appraisal model 2.Multichannel marketing model

© Marketing Insights Limited 2002 www.marketing-insights.co.uk <Improving performance through marketing intelligence>

TotalsE-channel Traditional channels

1,000,000 1,000,000 2,000,000Drive to traditional Drive to E-channel

Response efficiency 5.0% 1.00% 5.00% 10.0%10,000 50,000

100,000 Unique visitors Offline inbound enquiries 110,000 210,000

Conversion to lead efficiency 10.0% 5.00% 1.00% 20.0%5,000 1,100

11,100 Online leads Offline leads 27,000 38,100

Conversion to sale efficiency 20.0% 10.00% 0.50% 40.0%1,110 135

2,355 Online sales Offline sales 11,910 14,265

Average value per outcome £50 £70

Cost of acquisition per respondent £2 £5Cost of sale per customer £5 £50

Total visitor acquisition cost £200,000 £550,000Gross profit margin 10.0% 10.0%Total cost of goods sold £105,975 £750,330Total variable costs £305,975 £1,300,330Other brand and marketing costs £10,000 £20,000Site development/maintenance costs £80,000 £100,000Other operational costs £20,000 £40,000Total fixed costs £110,000 £160,000Total costs £415,975 £1,460,330

Total revenue £117,750 £833,700Profitability -£298,225 -£626,630Return on Investment -71.7% -42.9%Revenue per customer £50.00 £70.00Cost of customer acquisition (CPA) £84.93 £46.18

Home

REACH of Channel

RESPONDENTS from Channel

from Channel

OUTCOMES from Channel

Blue cells = input variables - vary these for 'what-if' analysis

How to use this spreadsheet1. Use for objective setting - vary reach and different types of efficiency using goal seeking to calculate required number of outcomes (key objective). 2. Use for what-if scenarios for different assumptions about efficiency - the example shows 2 different scenarios from best case to worst case. Sensitivity analysis of different variables can also be conducted.3. Use to evaluate proposals from different providers - check all cost components are present and compare quotes for each column.4. Use post-launch to compare actual budget with estimated.

Notes. A. Position mouse over cell to read the comment for cells with red triangles. B. This model is based on a single year only. A model integrated over several years is needed for detailed investment appraisal.C. This calculation does not allow for viral effects or reminders which may increase number of respondents - can increase CTR to allow for this.D. If negative amounts for nSent, CTR or completion are suggested the campaign is unrealistic in terms of input varaibles e.g. cost sent, value per outcome.

Web marketingefficiency

characteristics

E-commerce performance

measures

Orange cells = output variables (calculated - do not overtype)

DISCLAIMERThis spreadsheet is provided in good faith for modelling e-commerce investments. Smart Insights (Marketing Inteligence) Limited cannot be held responsible for the consequences of any errors in, or misinterpretation of, the spreadsheet models or for any actions taken as a result of using this spreadsheet.

VariablecostsFixedcosts

LEADS generated from Channel

Online Media Mix model - impression based

CPM CPC Total cost CTR CRO CPO CRS nSales

External online mediaOnline ads (CPM) £20,000 £10.0 £6.25 £80,000 £100,000 12% 8,000,000 0.2% 16,000 5.0% 800 £125.00 10.0% 80 4% £1,250.0Paid search (CPC) £5,000 £30.5 £2.00 £300,000 £305,000 37% 10,000,000 1.5% 150,000 5.0% 7,500 £40.67 10.0% 750 36% £406.7Natural search (Fixed) £30,000 £3.0 £0.30 £0 £30,000 4% 10,000,000 1.0% 100,000 5.0% 5,000 £6.00 10.0% 500 24% £60.0Affiliates (CPS) £20,000 £4.9 £0.82 £19,200 £39,200 5% 8,000,000 0.6% 48,000 5.0% 2,400 £16.33 10.0% 240 11% £80.0Aggregators (CPS) £20,000 £6.1 £0.76 £28,800 £48,800 6% 8,000,000 0.8% 64,000 5.0% 3,200 £15.25 10.0% 320 15% £90.0Sponsorships (Fixed) £10,000 £32.5 £6.50 £250,000 £260,000 32% 8,000,000 0.5% 40,000 5.0% 2,000 £130.00 10.0% 200 9% £1,300.0E-mail lists (CPM) £5,000 £80.0 £8.41 £32,000 £37,000 5% 400,000 1.1% 4,400 5.0% 220 £168.18 10.0% 22 1% £1,681.8Total/Average £110,000 £15.6 £1.94 £710,000 £820,000 ### 52,400,000 0.8% 422,400 5.0% 21,120 £38.83 10.0% 2,112 100% £388.3

Internal online mediaIn-house e-mail list/DM £500 £0.1 £0.17 £10 £510 n/a 100,000 3.0% 3,000 15.0% 450 £1.13 30% 135 n/a £3.8Own-site ads (other footfal £500 £1.0 £0.08 £1,000 £1,500 n/a 1,000,000 2.0% 20,000 10.0% 2,000 £0.75 25% 500 n/a £3.0Total/Average £1,000 £1.8 £0.09 £1,010 £2,010 n/a 1,100,000 2.1% 23,000 8.0% 2,450 £0.82 17.0% 635 n/a £3.2

Overall total/Average £111,000 £15.4 £1.85 £711,010 £822,010 n/a 53,500,000 0.8% 445,400 8.6% 23,570 £34.88 18.4% 2,747 n/a £299.2

Notes. 1. CPM and CPC calculated based on total cost for comparison2. This is not a full ROI or lifetime value model since revnue/profitability/future value not included

Home

Setup/ creative /Mgt costs

Media costs

Budget %

Impressions or names

Clicks or visits

nOpportunities

% of sales

CPS (CPA)

Media costs Conversion to Opportunity Conversion to SaleMedia volume/response

DISCLAIMERThis spreadsheet is provided in good faith for modelling e-commerce investments. Smart Insights (Marketing Inteligence) Limited cannot be held responsible for the consequences of any errors in, or misinterpretation of, the spreadsheet models or for any actions taken as a result of using this spreadsheet. Please notify me of formula errors, so that I can update. Thanks.

Blue cells = input variables - vary these for 'what-if' analysis

Orange cells = output variables (calculated - do not overtype)

How to use this spreadsheet1. First define expected conversion rates to opportunity (lead) and sale for different media (can be set to same value for simplicity).2. Then establish realistic costs for purchasing different media (CPM,CPA,CPC) as appropriate for your market.3. Finally vary the mix of impressions for different media, remembering that there are limits to media that can be purchased (e.g. number of search terms). Vary the impressions to maximise number of sales and minimise CPA while also minimising the riskof purchasing too much of one type of media - a more balanced budget diversifies risk.4. To compare the effectiveness of media look at differences in media for CPS and as % of budget and % of sales.

Online Media Mix model - based on % budget - with example of 'average' clickthrough rates

Overall budget £100,000Average order value £50.00Gross profit margin 30.0%

CPM CPC Total cost CTR CRO CPO CRS nSales

External online mediaOnline ad buys (CPM) £0 £10.0 £5.00 £10,000 £10,000 10% 1,000,000 0.2% 2,000 100.0% 2,000 £5.00 10.0% 200 1% £50.0Ad network (CPC) £0 £20.0 £1.00 £20,000 £20,000 20% 1,000,000 2.0% 20,000 100.0% 20,000 £1.00 10.0% 2,000 7% £10.0Paid search (CPC) £0 £4.0 £0.20 £30,000 £30,000 30% 7,500,000 2.0% 150,000 100.0% 150,000 £0.20 10.0% 15,000 52% £2.0Natural search (Fixed) £0 £0.5 £0.05 £5,000 £5,000 5% 10,000,000 1.0% 100,000 100.0% 100,000 £0.05 10.0% 10,000 35% £0.5Affiliates (CPS) £0 £10.0 £1.00 £5,000 £5,000 5% 500,000 1.0% 5,000 100.0% 5,000 £1.00 10.0% 500 2% £10.0Aggregators (CPS) £0 £0.0 £0.00 £0 £0 0% 0 1.0% 0 100.0% 0 £0.00 10.0% 0 0% £20.0Sponsorships (Fixed) £0 £100.0 £33.33 £10,000 £10,000 10% 100,000 0.3% 300 100.0% 300 £33.33 10.0% 30 0% £333.3Online PR (Fixed) £0 £100.0 £10.00 £10,000 £10,000 10% 100,000 1.0% 1,000 100.0% 1,000 £10.00 10.0% 100 0% £100.0E-mail lists (CPM) £0 £10.0 £1.00 £10,000 £10,000 10% 1,000,000 1.0% 10,000 100.0% 10,000 £1.00 10.0% 1,000 3% £10.0Total/Average £0 £4.7 £0.35 £100,000 £100,000 100% 21,200,000 1.4% 288,300 100.0% 288,300 £0.35 10.0% 28,830 100% £3.5

Internal online mediaIn-house e-mail list/DM £1,000 £0.0 £0.33 £0 £1,000 n/a 100,000 3.0% 3,000 15.0% 450 £2.22 30% 135 n/a £7.4Own-site ads (other footfall £1,000 £0.0 £0.05 £0 £1,000 n/a 1,000,000 2.0% 20,000 10.0% 2,000 £0.50 25% 500 n/a £2.0Total/Average £2,000 £1.8 £0.09 £0 £2,000 n/a 1,100,000 2.1% 23,000 70.8% 2,450 £0.82 15.8% 635 n/a £3.1

Overall total/Average £2,000 £4.6 £0.33 £100,000 £102,000 n/a 22,300,000 1.4% 311,300 59.2% 290,750 £0.35 18.2% 29,465 n/a £3.5Notes. 1. CPM and CPC calculated based on total cost for comparison2. This is not a full ROI or lifetime value model since revenue/profitability/future value not included3. For SEO, budget is automatically placed into setup/creative costs and you have to estimate the number of clicks this will deliver.4. For affiliate marketing, work back from Cost per sale to calculate sales, opportunities and clicks, so changing clickthrough and conversion rates impacts cells to left rather than right.5. The blue cells indicate the main control parameters for each media which are important to improving cost effectiveness

Home

Setup/ creative /Mgt costs

Media costs

Budget %

Impressions or names

Clicks or visits

nOpportunities

% of sales

CPS (CPA)

Media costs Conversion to Opportunity Conversion to SaleMedia volume/response

DISCLAIMERThis spreadsheet is provided in good faith for modelling e-commerce investments. Smart Insights (Marketing Inteligence) Limited cannot be held responsible for the consequences of any errors in, or misinterpretation of, the spreadsheet models or for any actions taken as a result of using this spreadsheet. Please notify me of formula errors, so that I can update. Thanks.

Blue cells = input variables - vary these for 'what-if' analysis

Orange cells = output variables (calculated - do not overtype)

How to use this spreadsheet1. First define expected conversion rates to opportunity (lead) and sale for different media (can be set to same value for simplicity).2. Then establish realistic costs for purchasing different media (CPM,CPA,CPC) as appropriate for your market.3. Finally vary the mix of impressions for different media, remembering that there are limits to media that can be purchased (e.g. number of search terms). Vary the impressions to maximise number of sales and minimise CPA while also minimising the riskof purchasing too much of one type of media - a more balanced budget diversifies risk.4. To compare the effectiveness of media look at differences in media for CPS and as % of budget and % of sales.

Source: Dave Chaffey (www.davechaffey.com)

DISCLAIMERThis spreadsheet is provided in good faith for modelling e-commerce investments. Smart Insights (Marketing Inteligence) Limited cannot be held responsible for the consequences of any errors in, or misinterpretation of, the spreadsheet models or for any actions taken as a result of using this spreadsheet. Please notify me of formula errors, so that I can update. Thanks.

Total revenue Profit

£10,000.00 £7,000 £10,000 £17,000 -£7,000.00 -41.2%£100,000.00 £70,000 £20,000 £90,000 £10,000.00 11.1%£750,000.00 £525,000 £30,000 £555,000 £195,000.00 35.1%£500,000.00 £350,000 £5,000 £355,000 £145,000.00 40.8%£25,000.00 £17,500 £5,000 £22,500 £2,500.00 11.1%

£0.00 £0 £0 £0 £0.00 #DIV/0!£1,500.00 £1,050 £10,000 £11,050 -£9,550.00 -86.4%£5,000.00 £3,500 £10,000 £13,500 -£8,500.00 -63.0%

£50,000.00 £35,000 £10,000 £45,000 £5,000.00 11.1%£1,441,500.00 £1,009,050 £100,000 £1,109,050 £332,450.00 30.0%

£0.00 #DIV/0!£0.00 #DIV/0!

£6,750.00 £4,725 £1,000 £5,725 £1,025.00 17.9%£25,000.00 £17,500 £1,000 £18,500 £6,500.00 35.1%£31,750.00 £22,225 £2,000 £24,225 £7,525.00 31.1%

£0.00 #DIV/0!£1,473,250.00 £1,031,275 £102,000 £1,133,275 £339,975.00 30.0%

Cost of goods sold

Media costs

Total costs (inc media)

Return on Investment

Costs

Costs

Revenue Profitability

Online Media Mix model - based on % budget - with example of 'average' clickthrough ratesInput Overall budget £100,000

parameter Average order value £50table Gross profit margin 30.0%

Setup/ creative / Mgt costs £0 £0 £0 £0 £0 £0 £0 £0 £0CPM £10.0 £10.0 £4.0 £0.4 £10.0 £20.0 £100.0 £10.0 £2.8

Media costs CPC £5.0 £5.0 £0.20 £0.20 £5.0 £10.0 £33.3 £100.0 £0.5Media costs £10,000 £10,000 £30,000 £10,000 £10,000 £10,000 £10,000 £10,000 £100,000Total cost:setup & media £10,000 £10,000 £30,000 £10,000 £10,000 £10,000 £10,000 £10,000 £100,000Budget % 10% 10% 30% 10% 10% 10% 10% 10% 100%

Media impressions Impressions or names 1,000,000 1,000,000 7,500,000 25,000,000 1,000,000 500,000 100,000 10,000 36,110,000& CTR 0.2% 0.2% 2.0% 0.2% 0.2% 0.2% 0.3% 1.0% 0.6%

Response Clicks or site visits 2,000 2,000 150,000 50,000 2,000 1,000 300 100 207,400Conversion Conversion rate to opportunity 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

to Number of opportunities 2,000 2,000 150,000 50,000 2,000 1,000 300 100 207,400Opportunity (Lead) Cost per opportunity £5.0 £5.0 £0.2 £0.2 £5.0 £10.0 £33.3 £100.0 £0.5

Conversion Conversion rate to sale 100.0% 100.0% 100.0% 100.0% 50.0% 100.0% 100.0% 100.0% 93.8%to Number of sales 2,000 2,000 150,000 50,000 1,000 1,000 300 100 206,400

Sales % of sales 1.0% 1.0% 72.7% 24.2% 0.5% 0.5% 0.1% 0.0% 100.0%Cost per sale (CPA) £5.0 £5.0 £0.2 £0.2 £10.0 £10.0 £33.3 £100.0 £0.5

Revenue Total revenue £100,000 £100,000 £7,500,000 £2,500,000 £50,000 £50,000 £15,000 £5,000 £10,320,000Cost of goods sold £70,000 £70,000 £5,250,000 £1,750,000 £35,000 £35,000 £10,500 £3,500 £7,224,000

Costs Media costs £10,000 £10,000 £30,000 £10,000 £10,000 £10,000 £10,000 £10,000 £100,000Total costs (inc media) £80,000 £80,000 £5,280,000 £1,760,000 £45,000 £45,000 £20,500 £13,500 £7,324,000

Profitability Profit £20,000 £20,000 £2,220,000 £740,000 £5,000 £5,000 -£5,500 -£8,500 £2,996,000Return on Investment 25.0% 25.0% 42.0% 42.0% 11.1% 11.1% -26.8% -63.0% 40.9%

Note:1. CPM and CPC calculated based on total cost for comparison2. This is not a full ROI or lifetime value model since future lifetime value not included3. For SEO, budget is automatically placed into setup/creative costs and you have to estimate the number of clicks this will deliver.4. For affiliate marketing, work back from Cost per sale to calculate sales, opportunities and clicks, so changing clickthrough and conversion rates impacts cells to left rather than right.5. The blue cells indicate the main control parameters for each media which are important to improving cost effectiveness

Home

All digital media channels

Ad buys (CPM)

Ad network (CPM)

Paid search (CPC)

Natural search

Affiliates (CPA)

Aggregators (CPA)

Sponsorship (Fixed)

Email list (CPM)

Total or Average

Source: Dave Chaffey (www.davechaffey.com)

Search

DISCLAIMERThis spreadsheet is provided in good faith for modelling e-commerce investments. Smart Insights (Marketing Inteligence) Limited cannot be held responsible for the consequences of any errors in, or misinterpretation of, the spreadsheet models or for any actions taken as a result of using this spreadsheet. Please notify me of formula errors, so that I can update. Thanks.

How to use this spreadsheet1. First define expected conversion rates to opportunity (lead) and sale for different media (can be set to same value for simplicity).2. Then establish realistic costs for purchasing different media (CPM,CPA,CPC) as appropriate for your market.3. Finally vary the mix of impressions for different media, remembering that there are limits to media that can be purchased (e.g. number of search terms). Vary the impressions to maximise number of sales and minimise CPA while also minimising the riskof purchasing too much of one type of media - a more balanced budget diversifies risk.4. To compare the effectiveness of media look at differences in media for CPS and as % of budget and % of sales.

Advertising Partners

Blue cells = input variables - vary these for 'what-if' analysis

Orange cells = output variables (calculated - do not overtype)

DISCLAIMERThis spreadsheet is provided in good faith for modelling e-commerce investments. Smart Insights (Marketing Inteligence) Limited cannot be held responsible for the consequences of any errors in, or misinterpretation of, the spreadsheet models or for any actions taken as a result of using this spreadsheet. Please notify me of formula errors, so that I can update. Thanks.

Full total

House list Total

£0 £0 £0 £0£0.0 £0.0 £0.0 £2.8£0.0 £0.0 £0.0 £0.5

£0 £0 £0 £100,000£0 £0 £0 £100,000

N/A N/A N/A NA10,000 100,000 110,000 36,220,000

0.2% 0.2% 0.2% 0.6%20 200 220 207,620

100.0% 100.0% 100.0% 100.0%

20 200 220 207,620£0.0 £0.0 £0.0 £0.5

100.0% 100.0% 100.0% 93.0%20 200 220 206,620

NA NA NA NA£0.0 £0.0 £0.0 £0.5

£1,000 £10,000 £11,000 £10,331,000£700 £7,000 £7,700 £7,231,700

£0 £0 £0 £100,000£700 £7,000 £7,700 £7,331,700£300 £3,000 £3,300 £2,999,300

42.9% 42.9% 42.9% 40.9%

3. For SEO, budget is automatically placed into setup/creative costs and you have to estimate the number of clicks this will deliver.4. For affiliate marketing, work back from Cost per sale to calculate sales, opportunities and clicks, so changing clickthrough and conversion rates impacts cells to left rather than right.

Site promo banners

External and internal

Conversion to Sale

DISCLAIMERThis spreadsheet is provided in good faith for modelling e-commerce investments. Smart Insights (Marketing Inteligence) Limited cannot be held responsible for the consequences of any errors in, or misinterpretation of, the spreadsheet models or for any actions taken as a result of using this spreadsheet. Please notify me of formula errors, so that I can update. Thanks.

How to use this spreadsheet1. First define expected conversion rates to opportunity (lead) and sale for different media (can be set to same value for simplicity).2. Then establish realistic costs for purchasing different media (CPM,CPA,CPC) as appropriate for your market.3. Finally vary the mix of impressions for different media, remembering that there are limits to media that can be purchased (e.g. number of search terms). Vary the impressions to maximise number of sales and minimise CPA while also minimising the riskof purchasing too much of one type of media - a more balanced budget diversifies risk.4. To compare the effectiveness of media look at differences in media for CPS and as % of budget and % of sales.

Costs

Costs

Revenue Profitability

Internal

Blue cells = input variables - vary these for 'what-if' analysis

Orange cells = output variables (calculated - do not overtype)

DISCLAIMERThis spreadsheet is provided in good faith for modelling e-commerce investments. Smart Insights (Marketing Inteligence) Limited cannot be held responsible for the consequences of any errors in, or misinterpretation of, the spreadsheet models or for any actions taken as a result of using this spreadsheet. Please notify me of formula errors, so that I can update. Thanks.

E-mail Campaign calculator created to support E-marketing training workshops from CIM and Dave Chaffey's Total E-mail Marketing book

6. E-mail objective setting

© Marketing Insights Limited 2002-2003 www.marketing-insights.co.uk >>Improving performance through marketing intelligence>>

Model

Best case Worst case Campaign 310,000 10,000 10,000

Deliverability (%) 90.0% 80.0% 100.0%

9,000 8,000 10,000

Open Rate (%) 30.00% 20.00% 100.00%

2,700 1,600 10,000

Clickthrough rate % (CTR) 10.0% 8.0% 100.0%

270 128 10,000

Form completion % 20.0% 10.0% 100.0%

54 13 10,000

Outcome conversion % 25.0% 22.5% 100.0%

14 3 10,000

Average value per outcome £10.00 £10.00 £10.00

List rental (per thousand) £150 £150 £150Cost per e-mail sent £0.050 £0.050 £0.050Fulfillment cost per response e.g.offers and response management £0.800 £0.800 £0.800Total list cost £1,500 £1,500 £1,500Total sending cost £500 £500 £500Total fulfillment cost £43 £10 £8,000E-mail creative £500 £500 £500Landing page / microsite creative £800 £800 £800Set-up cost for sending list and/or fixed fulfillment costs £250 £250 £250Total cost £3,593 £3,560 £11,550

Total revenue £135 £29 £100,000Profitability -£3,458 -£3,531 £88,450Return on Investment -96.2% -99.2% 765.8%Cost per click (CPC) £13.31 £27.81 £1.16Cost per response (CPA) £66.54 £278.14 £1.16Revenue per response £2.50 £2.25 £10.00

Home

Number of e-mails SENT from list

Number recipients who CLICKTHROUGH to landing page

Number of completed RESPONSES

Blue cells = input variables - vary these for 'what-if' analysis

How to use this spreadsheet1. Use for objective setting - vary 'number sent', CTR and completion rate to achieve the required number or responses or target profitability.2. Use for what-if scenarios for different response rates - the example shown shows 3 different scenarios from best case to worst case.3. Use to evaluate proposals from different providers - check all cost components are present and compare quotes for each column.4. Use post campaign to compare campaign success across different campaigns.

Notes. A. Position mouse over cell to read the comment for cells with red triangles. B. This sheet uses a simplification of all measures. Click on response details tab at bottom for more detailed stages of campaign. Margin is not built into this model.C. This calculation does not allow for viral effects or reminders which may increase number of respondents - can increase CTR to allow for this.D. If negative amounts for nSent, CTR or completion are suggested the campaign is unrealistic in terms of input varaibles e.g. cost sent, value per outcome.

E-mailcampaignresponsedetails

Campaign success

measures

Orange cells = output variables (calculated - do not overtype)

DISCLAIMERThis spreadsheet is provided in good faith for modelling e-mail campaigns. Smart Insights (Marketing Inteligence) Limited cannot be held responsible for the consequences of any errors in, or misinterpretation of, the spreadsheet models or for any actions taken as a result of using this spreadsheet. Please notify me of formula errors, so that I can update. Thanks.

Variablecosts

Fixedcosts

Number of required OUTCOMES

Objective setting worksheet - use to assess Return on Investment for different campaigns.See Chapter 3 of Dave Chaffey's Total E-mail Marketing for more details on E-marketing campaign planningE-mail campaign spreadsheet designed by Dave Chaffey of Marketing Insights (www.marketing-insights.co.uk)

Number E-mails DELIVERED

Number E-mail OPENED

7. Ad revenue model

document.xls 04/07/2023

Ad Unit or Container type Measure Site

Pages served 1,000,000

CPM (Cost Per Thousand) £10

% Inventory served 20%

Avg. Clickthrough (CTR %) 0.10%

Display Ad units served per page 2

advertising (CPM) Clicks - CPM ads 400

Revenue - display ads £4,000

Earnings per 100 clicks (EPC) £1,000.0

eCPM - display ads £4.00

% Inventory served 100%

Avg. Clickthrough (CTR %) 0.30%

Fixed Ad units served 1 1

Run-of-site Clicks - fixed 3,000

Sponsorship Revenue - fixed sponsorship* £3,000

Earnings per 100 clicks (EPC) £100.0

eCPM - fixed £3.00

% Inventory served 100%

Avg. Clickthrough (CTR %) 1.00%

Avg. Cost Per Click £0.30

Text ad Ad units served per page 1

advertising (CPC) Clicks - CPC ads 10,000

Revenue - CPC ads £3,000

Earnings per 100 clicks (EPC) £30.0

eCPM - CPC ads £3

% Inventory served 100%

Avg. Clickthrough (CTR %) 0.50%

Ad units served per page 1

Clicks - Affiliates 5,000

Affiliates Desination conversion rate (%) 3%

Commission Average order value £100

(and PPV) Commission % 10%

Revenue - affiliates £1,500

Earnings per 100 clicks (EPC) £30.0

eCPM - affiliates £1.50

Clicks - total 18,400

Overall metrics for site Revenue - total £11,500

Earnings per 100 clicks (EPC) - total £62.50

eCPM - total £11.50

Ad revenue modelSome guidelines on applying this model, which is available on the other worksheet:

1. This model asssumes there are the same ad unit types throughout the site - additional columns could be created for different page types or site sections.

2. Use the % inventory to roughly adjust the presence of the ad units throughout the site (set to 100% if run-of-site) or if all the inventory can't be sold in a given time period.

3. Set ad units of each type on the page. Bear in mind that position of individual placements will drastically affect CTR.

So for a more accurate model, additional rows could be created for ad units above the fold or within article copy, which will have a higher CTR.

4. I have set the CTRs to a typical average for different media, although beware since these are averages.

5. Earnings per thousand pages served (eCPM) should be reviewed to compare value generated by pages for different ad units / media deals.

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DISCLAIMERThis spreadsheet is provided in good faith for modelling e-commerce investments. Smart Insights (Marketing Inteligence) Limited cannot be held responsible for the consequences of any errors in, or misinterpretation of, the spreadsheet models or for any actions taken as a result of using this spreadsheet.

Blue cells = input variables - vary these for 'what-if' analysis

Orange cells = output variables (calculated - do not overtype)

Ad revenue worksheet - for site owners (especially publishers, portals and affiliates) to assess potential ad revenue for site based on number of page views and different types of ads in different containers. Assumes same number of ad units run of site, but a version could be created readily for each site section.

Performance measure Worst case Best caseAcquisition Current unique visitors to site or section per year 1,000,000 1,000,000

Potential incremental visitors 1.00% 2.00%Cost of increasing visitors (Year 1) £4,000 £20,000Potential incremental visits 10,000 20,000Potential future visits total 1,010,000 1,020,000

Conversion Current conversion rate 2.00% 2.00%Incremental conversion rate change 20.00% 5.00%Cost of improving conversion (Year 1) £20,000 £20,000New conversion rate 2.40% 2.10%Current sales 20,000 20,000Potential incremental leads or sales (from conversion) 4,000 1,000Potential future sales total (from visits and conversion) 24,240 21,420

Sales value Current average order value £50 £50Potential incremental average order value 10.00% 0.00%Cost of improving AOV (Year 1) £10,000 £10,000New AOV £55.00 £50.00Current revenue £1,000,000 £1,000,000Potential incremental revenue (from AOV) £100,000 £0Potential future revenue total (from visits, conv and AOV) £1,333,200 £1,071,000

Returns Current returns rate 10.00% 10.00%Potential incremental returns change 5.00% 3.00%Cost of improving returns rate £5,000 £5,000New returns rate 9.50% 9.70%Current revenue (with returns) £900,000 £900,000Potential incremental revenue (with reduced returns) £905,000 £903,000Potential future revenue total (with all improvements abo £1,206,546 £967,113

Channel profitability Margin 15% 15%Current site profit £135,000 £135,000Future site profit £180,982 £145,067Change in profit (%) 34% 7%Incremental profit £45,982 £10,067Total initiative costs £39,000 £55,000Return on investment 18% -82%

A high-level model for assessing potential increases in return from enhancing different parts of the sales cycle, for an e-commerce site.

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Incremental profiltability model - gives a simple way of assessing potential returns when investing in new promotion methods, new functionality, or conversion optimisation across the whole customer lifecycle. Use for top-level annual planning.