Marketing Math Worksheet - Lesson 1

April 12, 2013

Our whole business is driven by a fairly simple math equation. The CPC, cost per click, has to be lower then the EPC, earnings per click. Sure there’s some moving parts in between that change that but at the core that’s what it’s all about.


First thing we have to do is figure out what our click cost is. Some systems you buy on a CPC. But some systems you buy on a PPV or a CPM. CPM is cost per 1k impressions, and impression is an ad view. If you buy on a CPM you need to get it into a CPC format so that’s the equation we’ll start with.

To get a CPC from a CPM we have to know the CTR, click thru rate, the ad. Click thru rate is usually presented as a %. Depending on the source CTR’s will vary.

CTR% to decimal
.1% = .001 in decimal.

You just slide the decimal point 2 spaces to the left. So you try a few



.3% .003
1.3% .013
50% .5
.003% .00003
.4% .004

Pretty easy huh J


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