Understanding and optimizing online campaigns requires the use of digital marketing algorithms. These digital marketing formulas provide insights for effective marketing by calculating engagement rates in social media and evaluating click-through rates in SEO and SEM. Mohit’s SEO Training, which offers high-quality online courses for job-ready skill development in SEO and performance marketing, uses these algorithms to decipher the complexity of digital marketing. With Mohit’s SEO Training as your guide, discover the power of formulae in the dynamic world of digital marketing.
What Do You Know About Digital Marketing Formulas?
Assume you own a tiny bakery in Mumbai known for its delectable cupcakes. You aim to convert website visitors into customers who buy cupcakes from your bakery.
Conversion Rate Formula: (Total Website Visitors / Number of Cupcake Purchases) x 100
The quantity of cupcake purchases reflects the desired outcome (conversion), while total website visitors represent the audience you’re aiming for. The conversion rate formula is analogous to ensuring you have the correct recipe for converting website visitors into customers.
If 500 people visited your bakery’s website and 50 bought cupcakes, your conversion rate would be (50 / 500) x 100 = 10%. Likewise, this signifies that 10% of website visitors become genuine buyers. A digital marketer can optimize their strategy depending on the conversion rate to increase online sales like a baker modifies ingredients for the perfect cupcake.
The Main Digital Marketing Formulas For Successful Online Business
# 1 Formulas for Social Media Marketing
We will begin with social media marketing. So, here are some examples of Social Media Marketing Formulas:
1. Formula for Engagement Rate: (Engages/Reach) x 100
The Engagement Rate is a metric that displays how well your audience interacts with your material. Likewise, if you received 200 engagements (likes, comments, and shares) on a 5,000-view post, the amount would be (200 / 5000) multiplied by 100 = 4%.
2. CTR: Formula: (Clicks / Impressions) x 100
CTR assesses the effectiveness of your content in generating clicks. Similarly, the CTR for an article with 300 clicks out of 10,000 impressions is (300 / 10000) times 100 = 3%.
3. Conversion Rate: (Clicks / Conversions) multiplied by 100
The number of clicks that resulted in the intended activity is shown in the conversion rate. Likewise, if your ad received 50 conversions (sign-ups, purchases) from 500 clicks, your conversion rate is (50/500) x 100 = 10%.
Ultimately, these estimates help you assess the efficiency of your social media operations.
Also Read: What Are The 5 Ds of Digital Marketing and Their Importance
# 2 Digital Marketing SEO Formulas
Let us use examples to help you understand these SEO Formulas in Digital Marketing:
1. Organic Click-Through Rate (Organic Impressions) x 100
Organic CTR is the percentage of visitors who click on the link after noticing it in search engine results. Similarly, if your page appeared 1,000 times in search results and earned 100 hits, your Organic CTR would be (10% / 1000).
2. Formula for Bounce Rate: (Bounces / Sessions) x 100
The bounce rate is the percentage of visitors who leave after only reading one page. Furthermore, if you have 500 sessions and 100 results in a bounce, your bounce rate is (100 / 500) x 100 = 20%.
3. Density of Keywords: (Number of keyword occurrences / Total words) x 100
Keyword Density measures the frequency of a specific keyword in your content. Similarly, if your post is 800 words long and includes the target term 20 times, your keyword density is (20/800) x 100 = 2.5%.
Likewise, these SEO digital marketing algorithms let you assess the effectiveness of your website’s organic visibility.
# 3 Digital Marketing SEM Formulas
Let’s break down these SEM Formulas in Digital Marketing:
1. CPC (Cost Per Click): Clicks / Cost Formula
The cost per click (CPC) is the average cost of each ad click. Similarly, I spent $500 on a marketing campaign that received 100 clicks. As a result, your CPC will be $500 divided by 100, which is $5.
2. Rate of Click-Through: (Clicks / Impressions) x 100
CTR is the percentage of people who clicked on your ad after seeing it. In addition, if your advertisement received 1,000 impressions and 50 clicks, your CTR would be (50 / 1000) x 100 = 5%.
3. Conversion Rate: (Clicks / Conversions) multiplied by 100
The proportion of clicks that result in a desired activity (such as a purchase or sign-up). And this is what is known as the conversion rate. Likewise, if your ad resulted in ten conversions from 100 clicks, the Conversion Rate is (10 / 100) x 100 = 10%.
Furthermore, these SEM digital marketing formulas let you determine the success of your sponsored advertising activity.
# 4 Formulas for Email Marketing Metrics
Let’s go down the Email Marketing Metrics Formulas below:
1. Open Rate: (Opens * 100 / Delivered)
The Open Rate is the percentage of sent emails that recipients opened. In addition, if you send 1,000 emails and 200 are opened, your open rate is (200/1000) x 100 = 20%.
2. CTR (Click-Through Rate): (Clicks / Opens) x 100
CTR is the % of opened emails that resulted in clicks in email marketing. Similarly, if 40 emails were opened and 40 were clicked, the CTR is (40 / 200) x 100 = 20%.
3. Conversion Rate: (Clicks / Conversions) multiplied by 100
Conversion Rate shows the % of clicks that resulted in the desired action (for example, purchasing). Furthermore, if those 40 clicks resulted in 5 conversions, the Conversion Rate is (5 / 40) x 100 = 12.5%.
This demonstrates how a high CTR offers enticing content, and a high Conversion Rate indicates practical email conversions.
# 5 Formulas for Affiliate Marketing
Let’s break down the Affiliate Marketing formula in simple terms using an example:
1. CTR: (Clicks / Impressions) x 100
CTR determines the efficiency of affiliate links. If your link received 300 clicks out of 10,000 impressions, your CTR would be (300 / 10000) x 100 = 3%.
2. Conversion Rate: (Conversions / Clicks) x 100
Conversion Rate represents the number of clicks that resulted in the desired action. Likewise, the Conversion Rate is (50 / 500) x 100 = 10% if your affiliate link gets 50 conversions from 500 clicks.
3. EPC (Earnings Per Click): (Earnings / Clicks)
The average earnings generated by each click on your affiliate link are calculated by EPC. If you made $200 from 100 clicks, your EPC is $2 per click.
4. Return on Investment (ROI): ((Earnings – Cost) / Cost) x 100
ROI measures your affiliate campaign’s profitability. Likewise, if your earnings are $500 and your costs are $300, your ROI is ((500 – 300) / 300) x 100 = 66.67%.
Understanding these calculations allows you to evaluate the effectiveness and profitability of your affiliate marketing operations.
Things To Avoid While Implementing Digital Marketing Formulas
While you are implementing these formulas in digital marketing, try to avoid some common mistakes as mentioned below:
- Firstly, ignoring analytics means you’re missing out on vital user behaviour data, stifling advances to your digital marketing approach.
- Overlooking mobile optimisation results in a bad user experience, resulting in high bounce rates and less engagement.
- Disregarding your target audience leads to irrelevant content, reducing the efficacy of your efforts.
- Neglecting SEO fundamentals might result in reduced organic traffic and missed possibilities for online visibility.
- Lastly, avoiding social media involvement means passing up opportunities to create relationships and enhance your brand’s online presence.
Mohit Verma is an experienced professional with 9 years of experience in Search Engine Optimization. He has worked with many brands such as Bank of Baroda, 1boxoffice, and Ozonetel. He is on a mission to provide industry focused job oriented SEO and Google Ads Training, so the students/mentees can go and start working from day 1.
