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Most Frequently Asked Formula's In PPC Interview

CPC: Cost-per Click
Total Spend / Total Number Of Clicks

CPM: Cost- Per Thousand Impressions
 (Total Spend / Total Number Of Impressions) x 1000

CTR: Click-through Rate
Total Clicks / Total Impressions

CPA: Cost Per Acquisition
Total Spend / Total Conversions

CR: Conversion Rate:
(Total Conversion / Total Clicks) X 100

ROI: Return On Investment
(Revenue - Cost) / Investment Cost X 100 (for %)

Keyword Maximum Cost Per Click
Break even CPC = Value of each sale * Conversion rate / 100

Maximum Profitability
Maximum profit attainable = (Value of each sale – Minimum CPC) * Conversion rate * Monthly budget / Minimum CPC

Return On Investment (ROI)
ROI = (Value of each sale * Number of sales / Advertising cost) – 1

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  1. its very helpful for all PPC formulae ...I really appreciate this informational blog.

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Digital Marketing Terminologies Which is Generally Used in Corporate Industry

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301 Redirect – A 301 redirect automatically causes one url to redirect to another and tells the Web (and search engines) that this redirect is permanent, as opposed to a temporary (302) redirect. 301 redirects are generally preferable for Search Engine Optimization purposes and are therefore often referred to as search engine friendly redirects.
404 Server Code – The 404 or Not Found error message is a standard response code indicating that the client was able to communicate with a given server, but the server could not find what was requested.
Above the Fold – The part of the page you can see without scrolling down or over. The exact amount of space will vary by viewer because of screen settings. You often pay a premium for advertisement placements above the fold, which will add to the costs of internet marketing services, but may also add to results.
AdCenter – Bing Ads powers paid search results on Microsoft’s bing, Yahoo! (as of November 2010), and othe…