369139628.

xls

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.

Smart Insights Dave's company site offering best practice articles, consultancy and training
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. Media mix model - impression
2. Media Mix model - Budget E.G.
3. Media Mix model - Vertical
Defines conversion model for distinct digital media channels based on number of impressions serves and
costs/responsiveness of media. Doesn't include profitability
Defines conversion model for distinct digital media channels based on a % budget split between channels and
costs/responsiveness of media. Doesn't include profitability
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.

SmartInsights.com Latest best practice advice

DISCLAIMER
This spreadsheet is provided in good faith for modelling budgets and performance for digital marketing. Smart Insights (Marketing
Intelligence) 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 ask questions or let me know if you believe there are formula
errors, so that we can update.

Download and use this spreadsheet is subject to the usage terms defined on Smart Insights.

Thanks, Dave Chaffey (www.smartinsights.com).

Prepared by Dave Chaffey 10/19/2017 Page 1

Home
Online Media Mix model - impression based

Media costs Media volume/response Conversion to Opportunity Conversion to Sale

Setup/ CPM CPC Media Total cost Budg Impressions CTR Clicks or CRO nOpportu CPO CRS nSales % of CPS
creative / costs et % or names visits nities sales (CPA)
Mgt costs
External online media
Online 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% 1,250.0
Paid 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% 406.7
Natural 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% 60.0
Affiliates (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% 80.0
Aggregators (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% 90.0
Sponsorships (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% 1,300.0
E-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% 1,681.8
Total/Average 110,000 15.6 1.94 710,000 820,000 100% 52,400,000 0.8% 422,400 5.0% 21,120 38.83 10.0% 2,112 100% 388.3

Internal online media

In-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 3.8
Own-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 3.0
Total/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 comparison
2. This is not a full ROI or lifetime value model since revnue/profitability/future value not included

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

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

How to use this spreadsheet

1. 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 risk
of 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.

DISCLAIMER
This spreadsheet is provided in good faith for modelling budgets and performance for digital marketing. Smart Insights (Marketing
Intelligence) 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 ask questions or let me know if you believe there are
formula errors, so that we can update.

Download and use this spreadsheet is subject to the usage terms defined on Smart Insights.

Thanks, Dave Chaffey (www.smartinsights.com).

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

Overall budget 100,000

Average order value 50.00
Gross profit margin 30.0%

Media costs Media volume/response Conversion to Opportunity Conversion to Sale

Setup/ CPM CPC Media Total cost Budget Impressions CTR Clicks or CRO nOpportu CPO CRS nSales % of CPS
creative costs % or names visits nities sales (CPA)
/Mgt costs
External online media
Online 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% 50.0
Ad 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% 10.0
Paid 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% 2.0
Natural 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% 0.5
Affiliates (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% 10.0
Aggregators (CPS) 0 0.0 0.00 0 0 0% 0 1.0% 0 100.0% 0 0.00 10.0% 0 0% 20.0
Sponsorships (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% 333.3
Online 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% 100.0
E-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% 10.0
Total/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 media

In-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 7.4
Own-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 2.0
Total/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 3.5
Notes.
1. CPM and CPC calculated based on total cost for comparison
2. This is not a full ROI or lifetime value model since revenue/profitability/future value not included
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.
5. The blue cells indicate the main control parameters for each media which are important to improving cost effectiveness

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

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

How to use this spreadsheet

1. 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 risk
of 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.

DISCLAIMER
This spreadsheet is provided in good faith for modelling budgets and performance for digital marketing. Smart Insights (Marketing
Intelligence) 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 ask questions or let me know if you believe there are formula errors, so
that we can update.

Download and use this spreadsheet is subject to the usage terms defined on Smart Insights.

Thanks, Dave Chaffey (www.smartinsights.com).

Intelligence) 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 ask questions or let me know if you believe there are formula errors, so
that we can update.

Download and use this spreadsheet is subject to the usage terms defined on Smart Insights.

Thanks, Dave Chaffey (www.smartinsights.com).

 Costs

Revenue Costs Profitability

Total revenue Cost of Media Total costs Profit Return on
goods sold costs (inc media) Investment

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%
Home Online Media Mix model - based on % budget - with example of 'average' clickthrough rates
Input Overall budget 100,000 Blue cells = input variables - vary these for 'what-if' analysis
parameter Average order value 50
table Gross profit margin 30.0% Orange cells = output variables (calculated - do not overtype)

Advertising Search Partners All digital

media
channels
Ad buys Ad network Paid Natural Affiliates Aggregators Sponsorship Email list Total or
(CPM) (CPM) search search (CPA) (CPA) (Fixed) (CPM) Average
Setup/ creative / Mgt costs 0 0 (CPC) 0 0 0 0 0 0 0
CPM 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 0.5
Media costs 10,000 10,000 30,000 10,000 10,000 10,000 10,000 10,000 100,000
Total cost:setup & media 10,000 10,000 30,000 10,000 10,000 10,000 10,000 10,000 100,000
Budget % 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 1,000 300 100 207,400
Conversion 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 1,000 300 100 207,400
Opportunity (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 10,320,000
Cost 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 10,000 100,000
Total 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 2,996,000
Return 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 comparison
2. This is not a full ROI or lifetime value model since future lifetime value not included
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 im
5. The blue cells indicate the main control parameters for each media which are important to improving cost effectiveness

How to use this spreadsheet

1. 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 te
and minimise CPA while also minimising the risk
of 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.

DISCLAIMER
This spreadsheet is provided in good faith for modelling budgets and performance for digital marketing. Smart Insights (Marketing Intelligence) Limit
any errors in, or misinterpretation of, the spreadsheet models or for any actions taken as a result of using this spreadsheet. Please ask questions or
we can update.

Download and use this spreadsheet is subject to the usage terms defined on Smart Insights.
DISCLAIMER
This spreadsheet is provided in good faith for modelling budgets and performance for digital marketing. Smart Insights (Marketing Intelligence) Limit
any errors in, or misinterpretation of, the spreadsheet models or for any actions taken as a result of using this spreadsheet. Please ask questions or
we can update.

Download and use this spreadsheet is subject to the usage terms defined on Smart Insights.

Thanks, Dave Chaffey (www.smartinsights.com).

 Costs

Internal Full total

House list Site promo Total External and

banners internal
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 NA
10,000 100,000 110,000 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%

Revenue Costs Profitability

clicks this will deliver.

ng clickthrough and conversion rates impacts cells to left rather than right.

me value for simplicity).

ket.
n be purchased (e.g. number of search terms). Vary the impressions to maximise number of sales

sales.

rt Insights (Marketing Intelligence) Limited cannot be held responsible for the consequences of
s spreadsheet. Please ask questions or let me know if you believe there are formula errors, so that
rt Insights (Marketing Intelligence) Limited cannot be held responsible for the consequences of
s spreadsheet. Please ask questions or let me know if you believe there are formula errors, so that