Marketing Campaign Planning Smart Insights

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ReadMeHomeIntroduction to E-marketing spreadsheet models developed by Dr Dave ChaffeyI 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 InsightsDave's company site offering best practice articles, consultancy and trainingwww.twitter.com/davechaffeyDave uses Twitter for sharing tips and tools across of all digital marketing (esp analytics, search, email marketing and conversion optimisation)1. Media mix model - impressionDefines conversion model for distinct digital media channels based on number of impressions serves and costs/responsiveness of media. Doesn't include profitability2. Media Mix model - Budget E.G.Defines conversion model for distinct digital media channels based on a % budget split between channels and costs/responsiveness of media. Doesn't include profitability3. Media Mix model - VerticalDefines 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.comLatest best practice advice

&FPrepared by Dave Chaffey &D&RPage &PDISCLAIMERThis 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).1. Media mix model - impression3. Media Mix model - Vertical2. Media Mix model - Budget E.G.SmartInsights.comSmart Insightswww.twitter.com/davechaffey

1.Media Mix model - impressionHomeOnline Media Mix model - impression basedSetup/ creative /Mgt costsCPMCPCMedia costsTotal costBudget %Impressions or namesCTRClicks or visitsCROnOpportunitiesCPOCRSnSales% of salesCPS (CPA)External online mediaOnline ads (CPM)20,00010.0$6.25$80,000$100,00012%8,000,0000.2%16,0005.0%800$125.0010.0%804%1,250.0Paid search (CPC)5,00030.5$2.00$300,000$305,00037%10,000,0001.5%150,0005.0%7,500$40.6710.0%75036%406.7Natural search (Fixed)$30,0003.0$0.30$0$30,0004%10,000,0001.0%100,0005.0%5,000$6.0010.0%50024%60.0Affiliates (CPS)20,0004.9$0.82$19,200$39,2005%8,000,0000.6%48,0005.0%2,400$16.3310.0%24011%80.0Aggregators (CPS)20,0006.1$0.76$28,800$48,8006%8,000,0000.8%64,0005.0%3,200$15.2510.0%32015%90.0Sponsorships (Fixed)10,00032.5$6.50$250,000$260,00032%8,000,0000.5%40,0005.0%2,000$130.0010.0%2009%1,300.0E-mail lists (CPM)$5,00080.0$8.41$32,000$37,0005%400,0001.1%4,4005.0%220$168.1810.0%221%1,681.8Total/Average110,00015.6$1.94$710,000$820,000100%52,400,0000.8%422,4005.0%21,120$38.8310.0%2,112100%388.3Internal online mediaIn-house e-mail list/DM$5000.1$0.17$10$510n/a100,0003.0%3,00015.0%450$1.1330%135n/a3.8Own-site ads (other footfall)$5001.0$0.08$1,000$1,500n/a1,000,0002.0%20,00010.0%2,000$0.7525%500n/a3.0Total/Average1,0001.8$0.09$1,010$2,010n/a1,100,0002.1%23,0008.0%2,450$0.8217.0%635n/a3.2Overall total/Average111,00015.4$1.85$711,010$822,010n/a53,500,0000.8%445,4008.6%23,570$34.8818.4%2,747n/a299.2Notes.1. CPM and CPC calculated based on total cost for comparison2. This is not a full ROI or lifetime value model since revnue/profitability/future value not included

CPM:

Cost Per Thousand Impressions servedCPC:

Cost Per ClickMedia costs

In this model, these are calculated based on the combination of CPC, CPM or CPA relevant for the medium.Total cost:

The sum of setup and media costs.Budget %:

% of spend on media in this row.

Note: You have to ensure this column sums to 100%.Impressions or names

This is number of page or ad views purchased, or names in the case of e-mail.CTR:

Clickthrough rateClicks or visits:

The number of visits to the web site.CRO:

Conversion rate to opportunity. An opportunity could be a lead, quote, registration or when an item is added into a shopping basket or the start of the checkout process.nOpportunities:

A lead such as e-mail capture, registration, quote or the start of the shopping basket process.CPO:

Cost per opportunity.CRS:

Conversion rate to salenSales:

The number of sales.% of sales:

This should be compared to % budget to understand relative efficiencies.CPS (CPA):

Cost per sale.

Also known as Cost per Acquisition.Media costsConversion to OpportunityConversion to SaleMedia volume/responseBlue cells = input variables - vary these for 'what-if' analysisOrange cells = output variables (calculated - do not overtype)How to use this spreadsheet1. 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 riskof 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.DISCLAIMERThis 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

2.Media Mix model - Budget E.G.HomeOnline Media Mix model - based on % budget - with example of 'average' clickthrough ratesOverall budget100,000Average order value50.00Gross profit margin30.0%Setup/ creative /Mgt costsCPMCPCMedia costsTotal costBudget %Impressions or namesCTRClicks or visitsCROnOpportunitiesCPOCRSnSales% of salesCPS (CPA)Total revenueCost of goods soldMedia costsTotal costs (inc media)ProfitReturn on InvestmentExternal online mediaOnline ad buys (CPM)010.0$5.00$10,000$10,00010%1,000,0000.2%2,000100.0%2,000$5.0010.0%2001%50.010,000.007,000$10,00017,000-7,000.00-41.2%Ad network (CPC)020.0$1.00$20,000$20,00020%1,000,0002.0%20,000100.0%20,000$1.0010.0%2,0007%10.0100,000.0070,000$20,00090,00010,000.0011.1%Paid search (CPC)04.0$0.20$30,000$30,00030%7,500,0002.0%150,000100.0%150,000$0.2010.0%15,00052%2.0750,000.00525,000$30,000555,000195,000.0035.1%Natural search (Fixed)$00.5$0.05$5,000$5,0005%10,000,0001.0%100,000100.0%100,000$0.0510.0%10,00035%0.5500,000.00350,000$5,000355,000145,000.0040.8%Affiliates (CPS)010.0$1.00$5,000$5,0005%500,0001.0%5,000100.0%5,000$1.0010.0%5002%10.025,000.0017,500$5,00022,5002,500.0011.1%Aggregators (CPS)00.0$0.00$0$00%01.0%0100.0%0$0.0010.0%00%20.00.000$000.000.0%Sponsorships (Fixed)0100.0$33.33$10,000$10,00010%100,0000.3%300100.0%300$33.3310.0%300%333.31,500.001,050$10,00011,050-9,550.00-86.4%Online PR (Fixed)0100.0$10.00$10,000$10,00010%100,0001.0%1,000100.0%1,000$10.0010.0%1000%100.05,000.003,500$10,00013,500-8,500.00-63.0%E-mail lists (CPM)$010.0$1.00$10,000$10,00010%1,000,0001.0%10,000100.0%10,000$1.0010.0%1,0003%10.050,000.0035,000$10,00045,0005,000.0011.1%Total/Average04.7$0.35$100,000$100,000100%21,200,0001.4%288,300100.0%288,300$0.3510.0%28,830100%3.51,441,500.001,009,050$100,0001,109,050332,450.0030.0%0.000.0%Internal online media0.000.0%In-house e-mail list/DM$1,0000.0$0.33$0$1,000n/a100,0003.0%3,00015.0%450$2.2230%135n/a7.46,750.004,725$1,0005,7251,025.0017.9%Own-site ads (other footfall)$1,0000.0$0.05$0$1,000n/a1,000,0002.0%20,00010.0%2,000$0.5025%500n/a2.025,000.0017,500$1,00018,5006,500.0035.1%Total/Average2,0001.8$0.09$0$2,000n/a1,100,0002.1%23,00070.8%2,450$0.8215.8%635n/a3.131,750.0022,225$2,00024,2257,525.0031.1%0.000.0%Overall total/Average2,0004.6$0.33$100,000$102,000n/a22,300,0001.4%311,30059.2%290,750$0.3518.2%29,465n/a3.51,473,250.001,031,275$102,0001,133,275339,975.0030.0%Notes.1. CPM and CPC calculated based on total cost for comparison2. This is not a full ROI or lifetime value model since revenue/profitability/future value not included3. 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

CPM:

Cost Per Thousand Impressions servedCPC:

Cost Per ClickMedia comments

In this model, these are calculated by subtracting the setup costs from the total costs.Total cost:

Calculated by multiplying the budget % by the overall budget.Budget %:

% of spend on media in this row.

Note: You have to ensure this column sums to 100%.Impressions or names

This is number of page or ad views purchased, or names in the case of e-mail.CTR:

Clickthrough rateClicks or visits:

The number of visits to the web site.CRO:

Conversion rate to opportunity. An opportunity could be a lead, quote, registration or when an item is added into a shopping basket or the start of the checkout process.nOpportunities:

A lead such as e-mail capture, registration, quote or the start of the shopping basket process.CPO:

Cost per opportunity.CRS:

Conversion rate to salenSales:

The number of sales.% of sales:

This should be compared to % budget to understand relative efficiencies.CPS (CPA):

Cost per sale.

Also known as Cost per Acquisition.Media costsConversion to OpportunityConversion to SaleMedia volume/responseBlue cells = input variables - vary these for 'what-if' analysisOrange cells = output variables (calculated - do not overtype)How to use this spreadsheet1. 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 riskof 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.CostsCostsRevenueProfitabilityDISCLAIMERThis 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

3.Media Mix model - VerticalHomeOnline Media Mix model - based on % budget - with example of 'average' clickthrough ratesInputOverall budget100,000parameterAverage order value50tableGross profit margin30.0%All digital media channelsFull totalAd buys (CPM)Ad network (CPM)Paid search (CPC)Natural searchAffiliates (CPA)Aggregators (CPA)Sponsorship (Fixed)Email list (CPM)Total or AverageHouse listSite promo bannersTotalExternal and internalSetup/ creative / Mgt costs0000000000000CPM10.010.04.01.810.020.0100.010.04.30.00.00.04.3Media costsCPC5.05.00.200.905.010.033.3100.00.60.00.00.00.6Media costs10,00010,00030,00030,00010,00010,00010,00010,000120,000000120,000Total cost:setup & media10,00010,00030,00030,00010,00010,00010,00010,000120,000000120,000Budget %10%10%30%30%10%10%10%10%120%N/AN/AN/ANAMedia impressionsImpressions or names1,000,0001,000,0007,500,00016,666,6671,000,000500,000100,00010,00027,776,66710,000100,000110,00027,886,667&CTR0.2%0.2%2.0%0.2%0.2%0.2%0.3%1.0%0.7%0.2%0.2%0.2%0.7%ResponseClicks or site visits2,0002,000150,00033,3332,0001,000300100190,73320200220190,953ConversionConversion rate to opportunity100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%toNumber of opportunities2,0002,000150,00033,3332,0001,000300100190,73320200220190,953Opportunity (Lead)Cost per opportunity5.05.00.20.95.010.033.3100.00.60.00.00.00.6ConversionConversion rate to sale100.0%100.0%100.0%100.0%50.0%100.0%100.0%100.0%93.8%100.0%100.0%100.0%93.0%toNumber of sales2,0002,000150,00033,3331,0001,000300100189,73320200220189,953Sales% of sales1.1%1.1%79.1%17.6%0.5%0.5%0.2%0.1%100.0%NANANANACost per sale (CPA)5.05.00.20.910.010.033.3100.00.60.00.00.00.6RevenueTotal revenue100,000100,0007,500,0001,666,66750,00050,00015,0005,0009,486,6671,00010,00011,0009,497,667Cost of goods sold70,00070,0005,250,0001,166,66735,00035,00010,5003,5006,640,6677007,0007,7006,648,367CostsMedia costs10,00010,00030,00030,00010,00010,00010,00010,000120,000000120,000Total costs (inc media)80,00080,0005,280,0001,196,66745,00045,00020,50013,5006,760,6677007,0007,7006,768,367ProfitabilityProfit20,00020,0002,220,000470,0005,0005,000-5,500-8,5002,726,0003003,0003,3002,729,300Return on Investment25.0%25.0%42.0%39.3%11.1%11.1%-26.8%-63.0%40.3%42.9%42.9%42.9%40.3%Note:1. CPM and CPC calculated based on total cost for comparison2. This is not a full ROI or lifetime value model since future lifetime value not included3. 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

CPM:

Cost Per Thousand Impressions servedCPC:

Cost Per ClickMedia comments

In this model, these are calculated by subtracting the setup costs from the total costs.Total cost:

Calculat...