Digital Marketing & Analytics

Advertising metrics, social-media analytics and customer-value formulas

Digital Marketing & Analytics formulas help you measure how well campaigns perform, how audiences respond, and how much value customers bring over time. From click-through rate and CPM to CAC, CLV, and ROAS, these formulas are useful for students revising analytics, exam preparation, and professionals making smarter decisions in real marketing work. They turn raw data into clear insights that improve spending, growth, and strategy.

Click-Through Rate

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

Percentage of ad viewers who click on the ad.

Cost Per Mille (CPM)

CPM = \frac{\text{Cost}}{\text{Impressions}} \times 1000

Cost to reach 1 000 viewers with an ad.

Cost Per Click

CPC = \frac{\text{Total Cost}}{\text{Clicks}}

Average price paid for each click on an ad.

Cost Per Acquisition

CPA = \frac{\text{Total Cost}}{\text{Conversions}}

Average cost to acquire one paying customer or conversion.

Return on Ad Spend

NEWIntermediate

ROAS = \frac{\text{Revenue from Ads}}{\text{Ad Spend}}

Revenue generated for every currency unit spent on advertising.

Conversion Rate

CR = \frac{\text{Conversions}}{\text{Visitors}} \times 100

Percentage of visitors who complete a desired action.

Bounce Rate

BR = \frac{\text{Single-page sessions}}{\text{Total sessions}} \times 100

Percentage of visits where the user left after viewing only one page.

Engagement Rate

ER = \frac{\text{Likes} + \text{Comments} + \text{Shares}}{\text{Followers}} \times 100

How actively an audience interacts with content on social media.

Customer Acquisition Cost

NEWIntermediate

CAC = \frac{\text{Sales \& Marketing Cost}}{\text{New Customers}}

Total cost of acquiring one new customer including all sales and marketing expenses.

Customer Lifetime Value

NEWIntermediate

LTV = ARPU \times \frac{1}{\text{Churn Rate}}

Predicted total revenue a single customer will generate over their relationship with a business.

LTV-to-CAC Ratio

NEWIntermediate

\text{Ratio} = \frac{LTV}{CAC}

Compares customer value against acquisition cost to assess marketing efficiency.

Viral Coefficient

NEWIntermediate

K = i \times c

Average number of new users each existing user brings in through referrals.

Churn Rate

\text{Churn} = \frac{\text{Customers Lost}}{\text{Customers at Start}} \times 100

Percentage of customers who stop using a product in a given period.

Average Revenue Per User

ARPU = \frac{\text{Total Revenue}}{\text{Total Users}}

Mean revenue generated per active user in a period.

Net Promoter Score

NPS = \%\text{Promoters} - \%\text{Detractors}

Measures customer loyalty by subtracting the share of critics from the share of advocates.