58254254.

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.Web marketing model
2.Multichannel marketing model
3.Media mix model - impression
4.Media Mix model - Budget E.G.
5.Media Mix model - Vertical
A simple model at the level of whole site showing conversion of audiences into leads and outcomes. Includes profitability.
Similar to first model, this enables top-level comparison of referrals between online and offline channels.
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.

6. E-mail objective setting
7. Ad revenue model
8. Incremental profitability model
A simple model for email campaigns for modelling worst and best case campaign response based on intermediate response
stages including delivery, open, clickthrough, form response and final conversion from lead to sale.
Designed for site owners to help them forecast revenue based on pages served with different types of ad units including
affiliate (CPA), impresssion-based (CPM) or cost-per-click units on each page (assumes same across site)
A simple way of assessing potential improvements to site returns for an e-commerce site across the customer lifecycle

Digital Marketing benchmarking A separate spreadsheet for assessing the digital marketing capabilities of an organisation as part of strategy development.

DISCLAIMER
This spreadsheet is provided in good faith for modelling budgets and performance for E-marketing. Smart Insights (Marketing Inteligence) 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 notify me of formula errors, so that I can update. Thanks, Dave

Spreadsheet created by Internet marketing author and commentator Dave Chaffey of Smart Insights
Sign up for the latest alerts on digital marketing best practice at:
www.smartinsights.com

Prepared by Dave Chaffey 05/14/2011 Page 1

 E-commerce investment appraisal model 1.Web marketing model

Home Web marketing model - A simplifed version of the Objective setting spreadsheet, but without the 'What if' models
See Chapter 4 of Dave Chaffey's Total E-mail Marketing for more details on customer acquisition using the web and e-mail
E-mail campaign spreadsheet designed by Dave Chaffey of Marketing Insights (www.marketing-insights.co.uk)
Model Scenario 1 Scenario 2
REACH of web site 1,000,000 250,000

Attraction effciency 20.00% 5.00%

Web site VISITORS 200,000 12,500

Web marketing Site conversion efficiency 10.00% 5.00%

efficiency
20,000 625
characteristics LEADS generated
C
Lead conversion efficiency 60.00% 40.00%

Number of required OUTCOMES 12,000 250

Offline sales multiplier 1.0 1.0

Repeat customer multiplier 1.0 1.0
Average value per outcome £50 £30

Cost of acquisition per visitor (Average Cost per click, CPC) £0.30 £2.00
Variable Total visitor acquisition cost £60,000 £25,000
Gross profit margin 15.0% 20.0%
costs Total cost of goods sold £510,000 £6,000
Total variable costs £570,000 £31,000
Other brand and marketing costs £2,000 £2,000
Fixed Site development/maintenance costs £10,000 £20,000
costs Other operational costs £5,000 £10,000
Total fixed costs £17,000 £32,000
Total costs £587,000 £63,000

Total revenue £600,000 £7,500

Profitability £13,000 -£55,500
E-commerce
Return on Investment 2.2% -88.1%
performance Revenue per customer £50.00 £30.00
measures Cost of customer acquisition (CPA) £5.00 £100.00
Blue cells = input variables - vary these for 'what-if' analysis
Orange cells = output variables (calculated - do not overtype)
How to use this spreadsheet
1. Use for objective setting - vary reach and different types of efficiency using goal seeking to calculate required number of
outcomes (key objective).
2. Use for what-if scenarios for different assumptions about efficiency - the example shows 2 different scenarios from best case to
worst case. Sensitivity analysis of different variables can also be conducted. Need to perform for different media and products!
3. Use to evaluate proposals from different providers - check all cost components are present and compare quotes for each
column.
4. Use post-launch to compare actual budget with estimated.

Notes.
A. Position mouse over cell to read the comment for cells with red triangles.
B. This model is based on a single year only. A model integrated over several years is needed for detailed investment appraisal.
C. This calculation does not allow for viral effects or reminders which may increase number of respondents - can increase CTR to
allow for this.
DISCLAIMER
D. If spreadsheet
This negative amounts for nSent,
is provided CTRfaith
in good or completion aree-commerce
for modelling suggested the campaign is
investments. unrealistic
Smart Insightsin (Marketing
terms of input varaiblesLimited
Inteligence) e.g. cost
sent, value
cannot per responsible
be held outcome. 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 notify me of formula errors, so that I can update. Thanks.

© Marketing Insights Limited 2002 www.marketing-insights.co.uk <Improving performance through marketing intelligence>
 E-commerce investment appraisal model 2.Multichannel marketing model

Home Totals
E-channel Traditional channels
REACH of Channel 1,000,000 1,000,000 2,000,000
Drive to traditional Drive to E-channel
Response efficiency 5.0% 1.00% 5.00% 10.0%
10,000 50,000
RESPONDENTS from Channel 100,000 Unique visitors Offline inbound enquiries 110,000 210,000

Web marketing Conversion to lead efficiency

from Channel 10.0% 5.00% 1.00% 20.0%
efficiency 5,000 1,100
11,100 Online leads Offline leads 27,000 38,100
characteristics LEADS generated from Channel

Conversion to sale efficiency 20.0% 10.00% 0.50% 40.0%

1,110 135
OUTCOMES from Channel 2,355 Online sales Offline sales 11,910 14,265

Average value per outcome £50 £70

Cost of acquisition per respondent £2 £5

Cost of sale per customer £5 £50

Total visitor acquisition cost £200,000 £550,000

Gross profit margin 10.0% 10.0%
Total cost of goods sold £105,975 £750,330
Total variable costs £305,975 £1,300,330
Variable Other brand and marketing costs £10,000 £20,000
Fixed
costs Site development/maintenance costs £80,000 £100,000
costs Other operational costs £20,000 £40,000
Total fixed costs £110,000 £160,000
Total costs £415,975 £1,460,330

Total revenue £117,750 £833,700

E-commerce Profitability -£298,225 -£626,630
Return on Investment -71.7% -42.9%
performance Revenue per customer £50.00 £70.00
measures Cost of customer acquisition (CPA) £84.93 £46.18
Blue cells = input variables - vary these for 'what-if' analysis
Orange cells = output variables (calculated - do not overtype)
How to use this spreadsheet
1. Use for objective setting - vary reach and different types of efficiency using goal seeking to calculate required number of outcomes (key objective).
2. Use for what-if scenarios for different assumptions about efficiency - the example shows 2 different scenarios from best case to worst case. Sensitivity analysis of different variables can also be
conducted.
3. Use to evaluate proposals from different providers - check all cost components are present and compare quotes for each column.
4. Use post-launch to compare actual budget with estimated.

Notes.
A. Position mouse over cell to read the comment for cells with red triangles.
B. This model is based on a single year only. A model integrated over several years is needed for detailed investment appraisal.
C. This calculation does not allow for viral effects or reminders which may increase number of respondents - can increase CTR to allow for this.
D. If negative amounts for nSent, CTR or completion are suggested the campaign is unrealistic in terms of input varaibles e.g. cost sent, value per outcome.

DISCLAIMER
This spreadsheet is provided in good faith for modelling e-commerce investments. Smart Insights (Marketing Inteligence) 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.

© Marketing Insights Limited 2002 www.marketing-insights.co.uk <Improving performance through marketing intelligence>
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 footfall) £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 e-commerce investments. Smart Insights (Marketing Inteligence) 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 notify me of formula errors, so that I can update. Thanks.
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 e-commerce investments. Smart Insights (Marketing Inteligence) 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 notify me of formula errors, so that I can update. Thanks.
Source: Dave Chaffey (www.davechaffey.com)
 Costs

Revenue Costs Profitability

Total revenue Cost of goods Media Total costs Profit Return on
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 search Natural Affiliates Aggregators Sponsorship Email list Total or
(CPM) (CPM) (CPC) search (CPA) (CPA) (Fixed) (CPM) Average
Setup/ creative / Mgt costs £0 £0 £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
Source: Dave Chaffey (www.davechaffey.com)
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
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 e-commerce investments. Smart Insights (Marketing Inteligence) Limited cannot be held res
misinterpretation of, the spreadsheet models or for any actions taken as a result of using this spreadsheet. Please notify me of formula errors, so tha
This spreadsheet is provided in good faith for modelling e-commerce investments. Smart Insights (Marketing Inteligence) Limited cannot be held res
misinterpretation of, the spreadsheet models or for any actions taken as a result of using this spreadsheet. Please notify me of formula errors, so tha
 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%
Conversion to Sale
Revenue Costs Profitability

f clicks this will deliver.

ing 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.

g Inteligence) Limited cannot be held responsible for the consequences of any errors in, or
Please notify me of formula errors, so that I can update. Thanks.
g Inteligence) Limited cannot be held responsible for the consequences of any errors in, or
Please notify me of formula errors, so that I can update. Thanks.
E-mail Campaign calculator created to support E-marketing training workshops from CIM and Dave Chaffey's Total E-mail Marketing book 6. E-mail objective setting

Home Objective setting worksheet - use to assess Return on Investment for different campaigns. Model
See Chapter 3 of Dave Chaffey's Total E-mail Marketing for more details on E-marketing campaign planning
E-mail campaign spreadsheet designed by Dave Chaffey of Marketing Insights (www.marketing-insights.co.uk)

Best case Worst case Campaign 3

Number of e-mails SENT from list 10,000 10,000 10,000

Deliverability (%) 90.0% 80.0% 100.0%

Number E-mails DELIVERED 9,000 8,000 10,000

Open Rate (%) 30.00% 20.00% 100.00%

Number E-mail OPENED 2,700 1,600 10,000

E-mail
campaign Clickthrough rate % (CTR) 10.0% 8.0% 100.0%
response
Number recipients who CLICKTHROUGH to landing page 270 128 10,000
details
Form completion % 20.0% 10.0% 100.0%

Number of completed RESPONSES 54 13 10,000

Outcome conversion % 25.0% 22.5% 100.0%

Number of required OUTCOMES 14 3 10,000

Average value per outcome £10.00 £10.00 £10.00

List rental (per thousand) £150 £150 £150

Cost per e-mail sent £0.050 £0.050 £0.050
Variable Fulfillment cost per response e.g.offers and response management £0.800 £0.800 £0.800
Total list cost £1,500 £1,500 £1,500
costs Total sending cost £500 £500 £500
Total fulfillment cost £43 £10 £8,000
E-mail creative £500 £500 £500
Fixed Landing page / microsite creative £800 £800 £800
costs Set-up cost for sending list and/or fixed fulfillment costs £250 £250 £250
Total cost £3,593 £3,560 £11,550

Total revenue £135 £29 £100,000

Profitability -£3,458 -£3,531 £88,450
Campaign
Return on Investment -96.2% -99.2% 765.8%
success Cost per click (CPC) £13.31 £27.81 £1.16
measures Cost per response (CPA) £66.54 £278.14 £1.16
Revenue per response £2.50 £2.25 £10.00
Blue cells = input variables - vary these for 'what-if'
analysis
Orange cells = output variables (calculated - do not
overtype)
How to use this spreadsheet
1. Use for objective setting - vary 'number sent', CTR and completion rate to achieve the required number or responses or
target profitability.
2. Use for what-if scenarios for different response rates - the example shown shows 3 different scenarios from best case to
worst case.
3. Use to evaluate proposals from different providers - check all cost components are present and compare quotes for
each column.
4. Use post campaign to compare campaign success across different campaigns.

Notes.
A. Position mouse over cell to read the comment for cells with red triangles.
B. This sheet uses a simplification of all measures. Click on response details tab at bottom for more detailed stages of
campaign. Margin is not built into this model.
C. This calculation does not allow for viral effects or reminders which may increase number of respondents - can increase
CTR to allow for this.
DISCLAIMER
D. If spreadsheet
This negative amounts for nSent,
is provided CTRfaith
in good or completion aree-mail
for modelling suggested the campaign
campaigns. is unrealistic
Smart Insights in terms
(Marketing of input varaibles
Inteligence) Limited
e.g. cost
cannot besent,
heldvalue per outcome.
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 notify me of formula errors, so that I can update. Thanks.

© Marketing Insights Limited 2002-2003 www.marketing-insights.co.uk >>Improving performance through marketing intelligence>>
 7. Ad revenue model

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Ad revenue worksheet - for site owners (especially publishers, portals and affiliates) to assess potential ad revenue for
site based on number of page views and different types of ads in different containers. Assumes same number of ad units
run of site, but a version could be created readily for each site section.

Ad Unit or Container type Measure Site

Pages served 1,000,000
CPM (Cost Per Thousand) £10
% Inventory served 20%
Avg. Clickthrough (CTR %) 0.10%
Display Ad units served per page 2
advertising (CPM) Clicks - CPM ads 400
Revenue - display ads £4,000
Earnings per 100 clicks (EPC) £1,000.0
eCPM - display ads £4.00
% Inventory served 100%
Avg. Clickthrough (CTR %) 0.30%
Fixed Ad units served 1 1
Run-of-site Clicks - fixed 3,000
Sponsorship Revenue - fixed sponsorship* £3,000
Earnings per 100 clicks (EPC) £100.0
eCPM - fixed £3.00
% Inventory served 100%
Avg. Clickthrough (CTR %) 1.00%
Avg. Cost Per Click £0.30
Text ad Ad units served per page 1
advertising (CPC) Clicks - CPC ads 10,000
Revenue - CPC ads £3,000
Earnings per 100 clicks (EPC) £30.0
eCPM - CPC ads £3
% Inventory served 100%
Avg. Clickthrough (CTR %) 0.50%
Ad units served per page 1
Clicks - Affiliates 5,000
Affiliates Desination conversion rate (%) 3%
Commission Average order value £100
(and PPV) Commission % 10%
Revenue - affiliates £1,500
Earnings per 100 clicks (EPC) £30.0
eCPM - affiliates £1.50
Clicks - total 18,400
Overall metrics for site Revenue - total £11,500
Earnings per 100 clicks (EPC) - total £62.50
eCPM - total £11.50

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

Orange cells = output variables (calculated - do not overtype)
DISCLAIMER
This spreadsheet is provided in good faith for modelling e-commerce investments.
Smart Insights (Marketing Inteligence) 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.
Ad revenue model
Some guidelines on applying this model, which is available on the other worksheet:
1. This model asssumes there are the same ad unit types throughout the site - additional columns could be created for different page types or site sections.
2. Use the % inventory to roughly adjust the presence of the ad units throughout the site (set to 100% if run-of-site) or if all the inventory can't be sold in a given time period.
3. Set ad units of each type on the page. Bear in mind that position of individual placements will drastically affect CTR.
So for a more accurate model, additional rows could be created for ad units above the fold or within article copy, which will have a higher CTR.
4. I have set the CTRs to a typical average for different media, although beware since these are averages.
5. Earnings per thousand pages served (eCPM) should be reviewed to compare value generated by pages for different ad units / media deals.

58254254.xls 05/14/2011
Home

Incremental profiltability model - gives a simple way of assessing potential returns when investing in new
promotion methods, new functionality, or conversion optimisation across the whole customer lifecycle. Use for top-
level annual planning.
Performance measure Worst case Best case
Acquisition Current unique visitors to site or section per year 1,000,000 1,000,000
Potential incremental visitors 1.00% 2.00%
Cost of increasing visitors (Year 1) £4,000 £20,000
Potential incremental visits 10,000 20,000
Potential future visits total 1,010,000 1,020,000
Conversion Current conversion rate 2.00% 2.00%
Incremental conversion rate change 20.00% 5.00%
Cost of improving conversion (Year 1) £20,000 £20,000
New conversion rate 2.40% 2.10%
Current sales 20,000 20,000
Potential incremental leads or sales (from conversion) 4,000 1,000
Potential future sales total (from visits and conversion) 24,240 21,420
Sales value Current average order value £50 £50
Potential incremental average order value 10.00% 0.00%
Cost of improving AOV (Year 1) £10,000 £10,000
New AOV £55.00 £50.00
Current revenue £1,000,000 £1,000,000
Potential incremental revenue (from AOV) £100,000 £0
Potential future revenue total (from visits, conv and AOV) £1,333,200 £1,071,000
Returns Current returns rate 10.00% 10.00%
Potential incremental returns change 5.00% 3.00%
Cost of improving returns rate £5,000 £5,000
New returns rate 9.50% 9.70%
Current revenue (with returns) £900,000 £900,000
Potential incremental revenue (with reduced returns) £905,000 £903,000
Potential future revenue total (with all improvements above) £1,206,546 £967,113
Channel profitability Margin 15% 15%
Current site profit £135,000 £135,000
Future site profit £180,982 £145,067
Change in profit (%) 34% 7%
Incremental profit £45,982 £10,067
Total initiative costs £39,000 £55,000
Return on investment 18% -82%

A high-level model for assessing potential increases in return from enhancing different parts of the sales cycle, for an e-commerce site.