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Home Introduction to E-marketing spreadsheet models

The spreadsheets available, in increasing order of sophistication are:

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 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.
Marketing Insights Limited Dave's company site
Dave Chaffey blog Dave blog site giving insights on latest developments and best practice in digital marketing
DISCLAIMER
This spreadsheet is provided in good faith for modelling budgets and performance for E-marketing. Marketing Insights 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 Chaffey (www.davechaffey.com).

Spreadsheet created by Internet marketing author and commentator Dave Chaffey

http://www.davechaffey.com

Prepared by Dave Chaffey 07/16/2024 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% 2.00%

efficiency
characteristics LEADS generated 20,000 250

Lead conversion efficiency 60.00% 40.00%

Number of required OUTCOMES 12,000 100

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 £2 £4

Variable Total visitor acquisition cost £400,000 £50,000
costs Gross profit margin 50.0% 60.0%
Total cost of goods sold £300,000 £1,200
Total variable costs £700,000 £51,200
Other brand and marketing costs £10,000 £20,000
Fixed 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 £810,000 £211,200

Total revenue £600,000 £3,000

E-commerce Profitability -£210,000 -£208,200
Return on Investment -25.9% -98.6%
performance
Revenue per customer £50.00 £30.00
measures Cost of customer acquisition (CPA) £33.33 £500.00
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.
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. Marketing Insights 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)

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

Home
E-channel Traditional channels
REACH of Channel 1,000,000 1,000,000
Drive to traditional Drive to E-channel
Response efficiency 5.0% 1.00% 5.00% 10.0%

RESPONDENTS from Channel 100,000 Unique visitors Offline inbound enquiries 110,000

Web marketing from Channel

Conversion to lead efficiency 10.0% 5.00% 1.00% 20.0%
efficiency
characteristics LEADS generated from Channel 11,100 Online leads Offline leads 27,000

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

OUTCOMES from Channel 2,355 Online sales Offline sales 11,910

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. Marketing Insights 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
creative / costs et % or names visits nities sales
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%
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%
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%
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%
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%
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%
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%
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%

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
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
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

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

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. Marketing Insights 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)

sion to Sale
CPS
(CPA)

£1,250.0
£406.7
£60.0
£80.0
£90.0
£1,300.0
£1,681.8
£388.3

£3.8
£3.0
£3.2

£299.2
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
creative costs % or names visits nities sales
/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%
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%
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%
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%
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%
Aggregators (CPS) £0 £0.0 £0.00 £0 £0 0% 0 1.0% 0 100.0% 0 £0.00 10.0% 0 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%
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%
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%
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%

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
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
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

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

version to Sale Revenue Costs Profitability

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

£50.0 £10,000.00 £7,000 £10,000 £17,000 -£7,000.00 -41.2%

£10.0 £100,000.00 £70,000 £20,000 £90,000 £10,000.00 11.1%
£2.0 £750,000.00 £525,000 £30,000 £555,000 £195,000.00 35.1%
£0.5 £500,000.00 £350,000 £5,000 £355,000 £145,000.00 40.8%
£10.0 £25,000.00 £17,500 £5,000 £22,500 £2,500.00 11.1%
£20.0 £0.00 £0 £0 £0 £0.00 #DIV/0!
£333.3 £1,500.00 £1,050 £10,000 £11,050 -£9,550.00 -86.4%
£100.0 £5,000.00 £3,500 £10,000 £13,500 -£8,500.00 -63.0%
£10.0 £50,000.00 £35,000 £10,000 £45,000 £5,000.00 11.1%
£3.5 £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!
£7.4 £6,750.00 £4,725 £1,000 £5,725 £1,025.00 17.9%
£2.0 £25,000.00 £17,500 £1,000 £18,500 £6,500.00 35.1%
£3.1 £31,750.00 £22,225 £2,000 £24,225 £7,525.00 31.1%
£0.00 #DIV/0!
£3.5 £1,473,250.00 £1,031,275 £102,000 £1,133,275 £339,975.00 30.0%

ther than right.

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
(CPC)
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
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. Marketing Insights Limited cannot be held responsible for the con
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.
DISCLAIMER
This spreadsheet is provided in good faith for modelling e-commerce investments. Marketing Insights Limited cannot be held responsible for the con
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.
 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

clicks this will deliver.

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

me value for simplicity).

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

sales.

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

Home Objective setting worksheet - used 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%

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

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

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

Campaign Profitability -£3,458 -£3,531 £88,450
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.
D. If negative amounts for nSent, CTR or completion are suggested the campaign is unrealistic in terms of input varaibles
DISCLAIMER
e.g. cost
This sent, value
spreadsheet per outcome.
is provided in good faith for modelling e-mail campaigns. Marketing Insights 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)

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