Student | Simulation definitions and calculations

Definitions for acronyms and words that will increase understanding in the simulation. These definitions can also be found under the glossary terms in the guides button at the top of your screen.

Average CPC (Cost Per Click): The average price you paid whenever a user clicked on your ad. 

Max CPC (Cost Per Click): The amount you are willing to pay every time a user clicks your ad.

Default CPC (Cost Per Click): A Default CPC is set for each ad group and is the amount you will bid for a keyword associated with that ad group that has not had its Max CPC customized. 

Revenue: Displayed as currency(USD/$), and calculated in the following manner: (Sales * Retail Price).

Profits: Displayed as currency(USD/$), and is calculated in the following manner: (Revenue - COGS).

Conversions: The total number of units sold.

CTR (Click Through Rate):

PPC Ads - Displayed as a percentage and is calculated in the following manner: (Clicks / Impressions) * 100.

Email - Displayed as: Percentage(%) Calculated in the following manner: (Clicks/Opens).

ROI (Return on Investment): Displayed as a percentage and is calculated in the following matter: (profit - campaign costs/campaign costs)*100.

Ad ROAS (Return on Ad Spend): Displayed as a percentage and is calculated in the following manner: (Ad Profit - (Ad Costs) / Ad Costs))*100.

Impressions: The total amount of times your ad is shown on the search engine results page. 

 

 

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