General Formulas used in Digital Marketing

Several formulas and metrics in digital marketing help track performance, optimize strategies, and measure ROI. Here’s a list of the most common ones, grouped by area:

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🧮 General Performance Metrics

1. ROI (Return on Investment):

   $$ROI = \frac{{\text{Net Profit}}}{{\text{Total Investment}}} \times 100$$

2. ROAS (Return on Ad Spend):

   $$ROAS = \frac{{\text{Revenue from Ads}}}{{\text{Cost of Ads}}}$$

3. CPA (Cost Per Acquisition):

   $$CPA = \frac{{\text{Total Cost of Campaign}}}{{\text{Number of Conversions}}}$$

4. CPC (Cost Per Click):

   $$CPC = \frac{{\text{Total Ad Spend}}}{{\text{Number of Clicks}}}$$

5. CPM (Cost Per Mille/Thousand Impressions):

   $$CPM = \frac{{\text{Total Ad Spend}}}{{\text{Total Impressions}}} \times 1000$$

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📈 Website & SEO Metrics

1. CTR (Click-Through Rate):

   $$CTR = \frac{{\text{Clicks}}}{{\text{Impressions}}} \times 100$$

2. Bounce Rate:

   $$\text{Bounce Rate} = \frac{{\text{Single-Page Visits}}}{{\text{Total Visits}}} \times 100$$

3. Conversion Rate:

   $$\text{Conversion Rate} = \frac{{\text{Conversions}}}{{\text{Visitors}}} \times 100$$

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📣 Email Marketing Metrics

1. Open Rate:

   $$\text{Open Rate} = \frac{{\text{Emails Opened}}}{{\text{Emails Sent - Bounces}}} \times 100$$

2. Click-to-Open Rate (CTOR):

   $$CTOR = \frac{{\text{Clicks}}}{{\text{Opens}}} \times 100$$

3. Unsubscribe Rate:

   $$\text{Unsubscribe Rate} = \frac{{\text{Unsubscribes}}}{{\text{Emails Sent}}} \times 100$$

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📱 Social Media Metrics

1. Engagement Rate (per post):

   $$\text{Engagement Rate} = \frac{{\text{Likes + Comments + Shares}}}{{\text{Total Followers}}} \times 100$$

2. Follower Growth Rate:

   $$\text{Growth Rate} = \frac{{\text{New Followers}}}{{\text{Total Followers}}} \times 100$$

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📦 E-commerce Metrics

1. Customer Lifetime Value (CLV or LTV):

   $$CLV = \text{Average Purchase Value} \times \text{Purchase Frequency} \times \text{Customer Lifespan}$$

2. Cart Abandonment Rate:

   $$\text{Abandonment Rate} = \frac{{\text{Carts Created - Completed Sales}}}{{\text{Carts Created}}} \times 100$$

3. Average Order Value (AOV):

   $$AOV = \frac{{\text{Total Revenue}}}{{\text{Number of Orders}}}$$

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