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Old 08-25-2005, 02:16 AM   #1 (permalink)
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Is there any formula to drive CTR and CPC for Keywords?

Hello SEO Professionals,


Help me out in finding the CTR and CPC for the two keywords on MSN (Overture Account), Is there any particular formula to drive this out.


Keyword Searches Clicks CTR Cost CPC
Halo 2 110,547 16797 ? $11,208 ?
xbox 50,264 11971 ? $5,179 ?


a. What is the clickthrough rate (CTR) for the keyword, Halo 2?
Please illustrate the formula used to derive your answer.


b. What is the formula used to determine cost per click (CPC)? What
is the CPC for the keyword, Xbox? Please illustrate the formula used to
derive your answer.


c. How many sales would it take to drive a $10 cost per sale for
the keyword, Halo 2, at the given spend level?


i. What would be the click conversion rate (CCR) for this keyword?
Please illustrate the formula used to derive your answer.


ii. If the CPS increases to $25.00, and the CCR remains the same,
what is your new max CPC? Please illustrate the formula used to derive
your answer.


iii. What is the estimated # of sales if the CCR increases by .75%
and the CPS decreases to $9.00? Please illustrate the formula used to
derive your answer.


iv. What is the ROI based on a $2,708 profit? Please illustrate the
formula used to derive your answer.
Please help me in such a case...please let me know about any thing u
need to understand.
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Old 08-25-2005, 02:18 AM   #2 (permalink)
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Correct visiblisy for the data is given below as this is not clear in previous one.

Keyword Searches Clicks CTR Cost CPC
Halo 2 110,547 16797 ? $11,208 ?
xbox 50,264 11971 ? $5,179 ?
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Old 08-25-2005, 08:47 AM   #3 (permalink)
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For Click Through Rate (CTR), divide the number of clicks by the number of impressions, and express as a percentage.

For Cost Per Click (CPC), divide the media buy by the number of clicks, and express as a currency.



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Old 08-25-2005, 12:50 PM   #4 (permalink)
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I worked out the formula and feeling good to share with you all...

Its just like algebraic equation or mathematical stuff like thing...
If you want to take out the CPC of any Keyword then taking the example
of above data for Halo 2..

Keyword Searches Clicks CTR Cost CPC
Halo 2 110,547 16797 ? $11,208 ?

CPC (cost per click)= Total Cost/Total Clicks= 11,208/16797=66.72

CTR (Click Through Rate)= (Clicks/ Searches) X 100 = 15.19%
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Old 08-25-2005, 12:55 PM   #5 (permalink)
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Thanks Brian,

This forum again proved the quality tread and solutions Bcoz i posted the same thing at two three places and even in Google group also which i was supposing a group of experts but sorry to say that most of the people there are just argument's on the writing on other saying and no doubt few experts are there but In V7n I got the exact solution again...

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Old 08-25-2005, 03:13 PM   #6 (permalink)
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You're welcome!


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Old 08-26-2005, 05:12 AM   #7 (permalink)
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What would be the solution for the rest of the questions! can any one...


ii. If the CPS increases to $25.00, and the CCR remains the same,
what is your new max CPC? Please illustrate the formula used to derive
your answer.


iii. What is the estimated # of sales if the CCR increases by .75%
and the CPS decreases to $9.00? Please illustrate the formula used to
derive your answer.


iv. What is the ROI based on a $2,708 profit? Please illustrate the
formula used to derive your answer.
Please help me in such a case...please let me know about any thing u
need to understand.
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