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Being a successful internet marketer or online business owner requires some basic understanding of the metrics used to measure your online performance.

Whether you need a refresher or just learning about online marketing, these calculations will help you understand some of the most common terms, acronyms, and calculations used for measuring your data.

CPA/CPL/CPS

CPA/CPL/CPS

CPA (Cost Per Action)

Calculates your cost per order, lead, download, etc (aka CPL and CPS).

Example: $100 in ads generated 4 orders ($100 spent/4 orders) = $25 CPA.

CPC

CPC

CPC (Cost Per Click)

Calculates the cost per click in advertising.

Example: Spent $100 and received 50 clicks ($100/50 clicks) = = $2.00 average CPC.

CPM

CPM

CPM (Cost Per Thousand)

Calculates the cost per thousand impressions for a website.

Example: Received 15,000 impressions for $20 ($2 in ads / (15,000 impressions/1,000) = $1.30 CPM.
Online CPM Calculator

Conversion Rate

Conversion Rate

CR (Conversion Rate)

Calculates the number of people who made an action (download, order, etc.).

Example: 100 orders from 500 clicks (100 orders/500 clicks) = 20% CR.

Click-Through Rate (CTR)

Click-Through Rate (CTR)

CTR (Click Through Rate)

Calculates the how many people clicked through to view a page.

Example: 100 clicks from 500 impressions (100 clicks/5000 impressions) = 2% CTR.

Return on Investment (ROI)

Return on Investment (ROI)

ROI (Return on Investment)

Calculates how much your spending returns on a percentage basis.

Example: $100 in revenue from $40 in advertising (($100 revenue – $40 in ads) / $40 in ads) = 150% ROI.

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