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PPC Advertising Financial Calculator & Sensitivity Analysis (Excel XLSX)
Excel (XLSX)
VIDEO DEMO
DESCRIPTION
Get your numbers right before you scale. This template will help you.
This is a sensitivity analysis calculator to help anyone who is doing PPC (pay per click) direct marketing or PPC marketing for affiliate products and services. There are two separate calculators to account for both types.
Some of the final output values include break-even cost per click and expected profit/loss per period and per day for 17 different click amounts. A 12-month forecast and budget are also produced.
The user can enter assumptions for the following for Direct Marketing (this would be useful for someone selling their own products on their own website):
• Total # of clicks landing on website
• Number of Expected Sales from those clicks
• Conversion of Clicks to Sales (auto-calculated)
• Average earnings per sale
• Click interval (drives sensitivity table)
• Days in period
• Break-even CPC (auto-calculated)
• CPC you plan on paying
Based on all of that data, a table will populate that shows the resulting profit/loss based on total click volume and the CPC you plan on paying. If the CPC is less than your break-even CPC, there will be profit and vice versa.
The financial model will then show the resulting total revenue, total cost, and total profit per period and per day based on various total clicks (up to 17 slots). The affiliate marketing model is very similar to the above except there is an extra input to show clicks landing on your advertising site and how many of those clicks will go through to the affiliate product.
This model goes a step further and allows the user to create a 12-month forecast where you also have operating costs and you can select which type of advertising channel you are in (direct or affiliate) as well as the click level per month. This is great for budgeting purposes and sensitivity analysis over time.
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Source: Best Practices in Social Media Strategy, Advertising Excel: PPC Advertising Financial Calculator & Sensitivity Analysis Excel (XLSX) Spreadsheet, Jason Varner | SmartHelping
ABOUT THE AUTHOR
I graduated in 2011 with a Bachelor's degree in Accounting and began my career as a financial analyst at a small chain of auto repair shops. After gaining valuable experience, I launched my own practice specializing in real estate underwriting, later expanding into general business modeling.
I honed my spreadsheet modeling expertise by completing over 400 projects on Upwork with a 100% success
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