Important Marketing Formulas

Question 1

ACoS (Average Cost of Sale)

Answer 1

ACoS= ad spend/sales

key metric used to measure the performance of Amazon Sponsored Products campaigns. It helps to measure profitability by indicating the ratio of ad spends to targeted sales.

Question 2

What is the ROAS formula?

Answer 2

Gross Revenue/ad spend = ROAS

Example: 50 to 1 ratio

Question 3

Profit Margin formula

Answer 3

Gross Profit / Total Revenue * 100

Question 4

Markup formula

Answer 4

Ad Spend / Total Budget = Markup

Question 5

NGR (Net Gaming Revenue)

Answer 5

Amount Wagered – Winning Payouts – All Bonuses – All Taxes

Represents the real profits an online gambling site makes after the total revenue is cleared of expenses. It is commonly used to analyze business profitability, dividends payments, etc. In essence, NGR measures a gambling establishments net revenue, excluding operating expenses such as:

Player Bonuses (welcome bonus, no-deposit bonus, free spins, cashback, etc.)
Payment system fees
Payments to casino software solutions providers
Payments to partner companies
Licensing fees
Good and services taxes (tax that may be levied on all the operator’s gaming supplies

Question 6

Coversion Rate

Answer 6

Conversions / Clicks * 100

Question 7

ROI

Answer 7

Gross Profit - Marketing Investment / Marketing Investment

Question 8

Percent Change

Answer 8

New Value - Old Value / Old Value

Question 9

Average Order Value

Answer 9

Revenue of all orders combined / total number of orders

Question 10

CTR

Answer 10

clicks / impression * 100

Question 11

Mobile Bid

Answer 11

mobile conversion rate / desktop conversion rate) - 1

Question 12

Revenue

Answer 12

number of sales x sales price or average service price

Question 13

Gross Profit

Answer 13

revenue - COGS / revenue

(cost of goods and services)