The ROI calculator

IBP offers you four calculators that allow you to quickly find out if a pay per click (PPC) campaign is worth your money. Click the ROI Calculators link in IBP's main window to start the calculators:

Enter your campaign data in the edit fields and IBP will automatically return the results. The cost per conversion edit field has four post decimal positions to make the results more accurate.

IBP offers the following calculators:

PPC ROI Calculator:

The PPC ROI Calculator calculates the return-on-investment for your pay per click advertising campaigns. In relation to search engine advertising, the term ROI refers to sales generated as the direct result of a PPC search engine marketing campaign.

Maximum CPC Calculator:

This calculator helps you to find out how much you can pay per click so that you still get a positive return. CPC is short for cost-per-click.

CPC (cost per click) is used in advertising where the advertiser agrees to pay a set price each time the ad viewer clicks his advertisement. For example, if the CPC is $0.30 and the advertiser gets 10 clicks on a day, he'll pay $3.00 for it. CPC is used by pay per click search engines such as Overture, where you can bid for specific search terms and pay per click.

Impressions Calculator:

The Impressions Calculator helps you to find out if advertising on a web site was worthwhile to you.  The number of impressions is the number of times an ad is displayed.

CPM, CTR and CPC converter:

This calculator helps you to calculate the CPM (cost per thousand impressions), the CTR (click through rate) and the CPC (cost per click) of a campaign.

CPM (cost per thousand impressions) is used in advertising where the advertiser agrees to pay a set price for 1000 banner impressions or page views. For example, if a web site offers banner advertising for $12 CPM, and the advertisement is displayed 5000 times, then the advertiser pays $60. The abbreviation for "cost per thousand" is CPM because the letter "M" stands for the Roman numeral for 1000.

The click-through rate is an advertising term that determines the success of an advertisement. It usually describes the number of times a link is clicked on a web page compared to the number of times that page is displayed. For example, if a web page gets 2000 visitors and 250 people click on a banner, that banner has a click-through rate of 0.125 (250 / 2000).