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TERMINOLOGY
Total monthly impressions from your CPM advertising
This section of the tool lets you put in last month's number to calculate last month's ROI. You can also project next month's number to calculate next month's potential ROI.
Estimated average CPM
Reach measures the number of users. Reach is typically expressed as the percentage of all Internet users who visit a given site. Alexa expresses reach as the number of users per million. The three-month changes are determined by comparing a site's current reach with its values from three month ago.
Click-through rate
Your click-through rate is the percentage of actual click-throughs per number of impressions. For example, if you pay for 5,000 impressions and get 50 click-throughs, your click-through rate would be 1%. Enter a percent number, not a fraction. For instance, for 10% enter 10, not 0.10.
Conversion Rate
Your conversion rate is the percentage of visitors who come to your site from a banner or button and convert into customers, for instance, by making a purchase. Conversion rates vary by company, but an average conversion rate you can use as a test would be 2-3%. Enter a percent number, not a fraction. For instance, for 10% enter 10, not 0.10.
Average profit per conversion
Profit refers to the amount of money you earn from a sale. For example, if you sell a software package for $100 and it only cost you $10, your profit is $90. You must supply this number from your own records by estimating the average amount of profit you make from each conversion.
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