Re: CPA, CPM...

From: Jim Sterne <jsterne_at_targeting.com>
Date: Fri 23 Nov 2001 08:10:38 -0500

At 12:55 PM 11/20/01, Amanda Vega wrote:
>We took the conversions (actual purchase
>of product) and subtracted that amount from the total
>spent on each campaign, and then came up with the
>perecent above what we paid, as our ROI. (We also
>subtracted the monthly fees the client pays to us and
>the cost of the third party ad server to determine
>ROI.) Our client makes 706% more than he spends on
>all of his online ads. Is that what you wanted?

That's what I wanted, Amanda.

I always wonder whether people calculate
their ROI purely on the cost of the
promotion, or whether they're looking at
the net return after subtracting the cost
of manufacture, shipping, and pro-rated
customer service.

Thanks!


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Jim Sterne Target Marketing of Santa Barbara
jsterne@targeting.com http://www.targeting.com
Author, Speaker, Consultant +1 805-965-3184
Web Marketing, Customer Service & E-Metrics Consulting
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Received on Fri Nov 23 2001 - 07:10:38 CST