This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here: http://flevy.com/browse/business-document/digital-marketing-planning-spreadsheet-1056 DESCRIPTION The spreadsheet model is designed to help you develop a budget model for campaigns or annual planning. It enables you to performa a "what-if" analysis for varying investment in digital media to see the impact on leads, sales and return on investment.

1. Home
Online Media Mix model - impression based
Setup/
creative
/Mgt
costs
CPM CPC Media
costs
Total cost Budg
et %
Impressions
or names
CTR Clicks or
visits
CRO nOpportu
nities
CPO CRS nSales % of
sales
CPS
(CPA)
External online media
Online ads (CPM) £20,000 £10.0 £6.25 £80,000 £100,000 12% 8,000,000 0.2% 16,000 5.0% 800 £125.00 10.0% 80 4% £1,250.0
Paid search (CPC) £5,000 £30.5 £2.00 £300,000 £305,000 37% 10,000,000 1.5% 150,000 5.0% 7,500 £40.67 10.0% 750 36% £406.7
Natural search (Fixed) £30,000 £3.0 £0.30 £0 £30,000 4% 10,000,000 1.0% 100,000 5.0% 5,000 £6.00 10.0% 500 24% £60.0
Affiliates (CPS) £20,000 £4.9 £0.82 £19,200 £39,200 5% 8,000,000 0.6% 48,000 5.0% 2,400 £16.33 10.0% 240 11% £80.0
Aggregators (CPS) £20,000 £6.1 £0.76 £28,800 £48,800 6% 8,000,000 0.8% 64,000 5.0% 3,200 £15.25 10.0% 320 15% £90.0
Sponsorships (Fixed) £10,000 £32.5 £6.50 £250,000 £260,000 32% 8,000,000 0.5% 40,000 5.0% 2,000 £130.00 10.0% 200 9% £1,300.0
E-mail lists (CPM) £5,000 £80.0 £8.41 £32,000 £37,000 5% 400,000 1.1% 4,400 5.0% 220 £168.18 10.0% 22 1% £1,681.8
Total/Average £110,000 £15.6 £1.94 £710,000 £820,000 100% 52,400,000 0.8% 422,400 5.0% 21,120 £38.83 10.0% 2,112 100% £388.3
Internal online media
In-house e-mail list/DM £500 £0.1 £0.17 £10 £510 n/a 100,000 3.0% 3,000 15.0% 450 £1.13 30% 135 n/a £3.8
Own-site ads (other footfall) £500 £1.0 £0.08 £1,000 £1,500 n/a 1,000,000 2.0% 20,000 10.0% 2,000 £0.75 25% 500 n/a £3.0
Total/Average £1,000 £1.8 £0.09 £1,010 £2,010 n/a 1,100,000 2.1% 23,000 8.0% 2,450 £0.82 17.0% 635 n/a £3.2
Overall total/Average £111,000 £15.4 £1.85 £711,010 £822,010 n/a 53,500,000 0.8% 445,400 8.6% 23,570 £34.88 18.4% 2,747 n/a £299.2
Notes.
1. CPM and CPC calculated based on total cost for comparison
2. This is not a full ROI or lifetime value model since revnue/profitability/future value not included
Media costs Conversion to Opportunity Conversion to SaleMedia volume/response
Blue cells = input variables - vary these for 'what-if' analysis
Orange cells = output variables (calculated - do not overtype)
How to use this spreadsheet
1. First define expected conversion rates to opportunity (lead) and sale for different media (can be set to same value for simplicity).
2. Then establish realistic costs for purchasing different media (CPM,CPA,CPC) as appropriate for your market.
3. Finally vary the mix of impressions for different media, remembering that there are limits to media that can be purchased (e.g.
number of search terms). Vary the impressions to maximise number of sales and minimise CPA while also minimising the risk
of purchasing too much of one type of media - a more balanced budget diversifies risk.
4. To compare the effectiveness of media look at differences in media for CPS and as % of budget and % of sales.

2. Home Online Media Mix model - based on % budget - with example of 'average' clickthrough rates
Overall budget £100,000
Average order value £50.00
Gross profit margin 30.0%
Setup/
creative
/Mgt costs
CPM CPC Media
costs
Total cost Budget
%
Impressions
or names
CTR Clicks or
visits
CRO nOpportu
nities
CPO CRS nSales % of
sales
CPS
(CPA)
Total revenue Cost of
goods sold
Media
costs
Total costs
(inc media)
Profit Return on
Investment
External online media
Online ad buys (CPM) £0 £10.0 £5.00 £10,000 £10,000 10% 1,000,000 0.2% 2,000 100.0% 2,000 £5.00 10.0% 200 1% £50.0 £10,000.00 £7,000 £10,000 £17,000 -£7,000.00 -41.2%
Ad network (CPC) £0 £20.0 £1.00 £20,000 £20,000 20% 1,000,000 2.0% 20,000 100.0% 20,000 £1.00 10.0% 2,000 7% £10.0 £100,000.00 £70,000 £20,000 £90,000 £10,000.00 11.1%
Paid search (CPC) £0 £4.0 £0.20 £30,000 £30,000 30% 7,500,000 2.0% 150,000 100.0% 150,000 £0.20 10.0% 15,000 52% £2.0 £750,000.00 £525,000 £30,000 £555,000 £195,000.00 35.1%
Natural search (Fixed) £0 £0.5 £0.05 £5,000 £5,000 5% 10,000,000 1.0% 100,000 100.0% 100,000 £0.05 10.0% 10,000 35% £0.5 £500,000.00 £350,000 £5,000 £355,000 £145,000.00 40.8%
Affiliates (CPS) £0 £10.0 £1.00 £5,000 £5,000 5% 500,000 1.0% 5,000 100.0% 5,000 £1.00 10.0% 500 2% £10.0 £25,000.00 £17,500 £5,000 £22,500 £2,500.00 11.1%
Aggregators (CPS) £0 £0.0 £0.00 £0 £0 0% 0 1.0% 0 100.0% 0 £0.00 10.0% 0 0% £20.0 £0.00 £0 £0 £0 £0.00 #DIV/0!
Sponsorships (Fixed) £0 £100.0 £33.33 £10,000 £10,000 10% 100,000 0.3% 300 100.0% 300 £33.33 10.0% 30 0% £333.3 £1,500.00 £1,050 £10,000 £11,050 -£9,550.00 -86.4%
Online PR (Fixed) £0 £100.0 £10.00 £10,000 £10,000 10% 100,000 1.0% 1,000 100.0% 1,000 £10.00 10.0% 100 0% £100.0 £5,000.00 £3,500 £10,000 £13,500 -£8,500.00 -63.0%
E-mail lists (CPM) £0 £10.0 £1.00 £10,000 £10,000 10% 1,000,000 1.0% 10,000 100.0% 10,000 £1.00 10.0% 1,000 3% £10.0 £50,000.00 £35,000 £10,000 £45,000 £5,000.00 11.1%
Total/Average £0 £4.7 £0.35 £100,000 £100,000 100% 21,200,000 1.4% 288,300 100.0% 288,300 £0.35 10.0% 28,830 100% £3.5 £1,441,500.00 £1,009,050 £100,000 £1,109,050 £332,450.00 30.0%
£0.00 #DIV/0!
Internal online media £0.00 #DIV/0!
In-house e-mail list/DM £1,000 £0.0 £0.33 £0 £1,000 n/a 100,000 3.0% 3,000 15.0% 450 £2.22 30% 135 n/a £7.4 £6,750.00 £4,725 £1,000 £5,725 £1,025.00 17.9%
Own-site ads (other footfall) £1,000 £0.0 £0.05 £0 £1,000 n/a 1,000,000 2.0% 20,000 10.0% 2,000 £0.50 25% 500 n/a £2.0 £25,000.00 £17,500 £1,000 £18,500 £6,500.00 35.1%
Total/Average £2,000 £1.8 £0.09 £0 £2,000 n/a 1,100,000 2.1% 23,000 70.8% 2,450 £0.82 15.8% 635 n/a £3.1 £31,750.00 £22,225 £2,000 £24,225 £7,525.00 31.1%
£0.00 #DIV/0!
Overall total/Average £2,000 £4.6 £0.33 £100,000 £102,000 n/a 22,300,000 1.4% 311,300 59.2% 290,750 £0.35 18.2% 29,465 n/a £3.5 £1,473,250.00 £1,031,275 £102,000 £1,133,275 £339,975.00 30.0%
Notes.
1. CPM and CPC calculated based on total cost for comparison
2. This is not a full ROI or lifetime value model since revenue/profitability/future value not included
3. For SEO, budget is automatically placed into setup/creative costs and you have to estimate the number of clicks this will deliver.
4. For affiliate marketing, work back from Cost per sale to calculate sales, opportunities and clicks, so changing clickthrough and conversion rates impacts cells to left rather than right.
5. The blue cells indicate the main control parameters for each media which are important to improving cost effectiveness
Media costs Conversion to Opportunity Conversion to SaleMedia volume/response
Blue cells = input variables - vary these for 'what-if' analysis
Orange cells = output variables (calculated - do not overtype)
How to use this spreadsheet
1. First define expected conversion rates to opportunity (lead) and sale for different media (can be set to same value for simplicity).
2. Then establish realistic costs for purchasing different media (CPM,CPA,CPC) as appropriate for your market.
3. Finally vary the mix of impressions for different media, remembering that there are limits to media that can be purchased (e.g. number
of search terms). Vary the impressions to maximise number of sales and minimise CPA while also minimising the risk
of purchasing too much of one type of media - a more balanced budget diversifies risk.
4. To compare the effectiveness of media look at differences in media for CPS and as % of budget and % of sales.
Costs
Costs
Revenue Profitability
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/digital-marketing-planning-spreadsheet-1056

3. Home Online Media Mix model - based on % budget - with example of 'average' clickthrough rates
Input Overall budget £100,000
parameter Average order value £50
table Gross profit margin 30.0%
All digital
media
channels
Full total
Ad buys
(CPM)
Ad network
(CPM)
Paid
search
(CPC)
Natural
search
Affiliates
(CPA)
Aggregators
(CPA)
Sponsorshi
p (Fixed)
Email list
(CPM)
Total or
Average
House list Site promo
banners
Total External and
internal
Setup/ creative / Mgt costs £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0
CPM £10.0 £10.0 £4.0 £0.4 £10.0 £20.0 £100.0 £10.0 £2.8 £0.0 £0.0 £0.0 £2.8
Media costs CPC £5.0 £5.0 £0.20 £0.20 £5.0 £10.0 £33.3 £100.0 £0.5 £0.0 £0.0 £0.0 £0.5
Media costs £10,000 £10,000 £30,000 £10,000 £10,000 £10,000 £10,000 £10,000 £100,000 £0 £0 £0 £100,000
Total cost:setup & media £10,000 £10,000 £30,000 £10,000 £10,000 £10,000 £10,000 £10,000 £100,000 £0 £0 £0 £100,000
Budget % 10% 10% 30% 10% 10% 10% 10% 10% 100% N/A N/A N/A NA
Media impressions Impressions or names 1,000,000 1,000,000 7,500,000 25,000,000 1,000,000 500,000 100,000 10,000 36,110,000 10,000 100,000 110,000 36,220,000
& CTR 0.2% 0.2% 2.0% 0.2% 0.2% 0.2% 0.3% 1.0% 0.6% 0.2% 0.2% 0.2% 0.6%
Response Clicks or site visits 2,000 2,000 150,000 50,000 2,000 1,000 300 100 207,400 20 200 220 207,620
Conversion Conversion rate to opportunity 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
to Number of opportunities 2,000 2,000 150,000 50,000 2,000 1,000 300 100 207,400 20 200 220 207,620
Opportunity (Lead) Cost per opportunity £5.0 £5.0 £0.2 £0.2 £5.0 £10.0 £33.3 £100.0 £0.5 £0.0 £0.0 £0.0 £0.5
Conversion Conversion rate to sale 100.0% 100.0% 100.0% 100.0% 50.0% 100.0% 100.0% 100.0% 93.8% 100.0% 100.0% 100.0% 93.0%
to Number of sales 2,000 2,000 150,000 50,000 1,000 1,000 300 100 206,400 20 200 220 206,620
Sales % of sales 1.0% 1.0% 72.7% 24.2% 0.5% 0.5% 0.1% 0.0% 100.0% NA NA NA NA
Cost per sale (CPA) £5.0 £5.0 £0.2 £0.2 £10.0 £10.0 £33.3 £100.0 £0.5 £0.0 £0.0 £0.0 £0.5
Revenue Total revenue £100,000 £100,000 £7,500,000 £2,500,000 £50,000 £50,000 £15,000 £5,000 £10,320,000 £1,000 £10,000 £11,000 £10,331,000
Cost of goods sold £70,000 £70,000 £5,250,000 £1,750,000 £35,000 £35,000 £10,500 £3,500 £7,224,000 £700 £7,000 £7,700 £7,231,700
Costs Media costs £10,000 £10,000 £30,000 £10,000 £10,000 £10,000 £10,000 £10,000 £100,000 £0 £0 £0 £100,000
Total costs (inc media) £80,000 £80,000 £5,280,000 £1,760,000 £45,000 £45,000 £20,500 £13,500 £7,324,000 £700 £7,000 £7,700 £7,331,700
Profitability Profit £20,000 £20,000 £2,220,000 £740,000 £5,000 £5,000 -£5,500 -£8,500 £2,996,000 £300 £3,000 £3,300 £2,999,300
Return on Investment 25.0% 25.0% 42.0% 42.0% 11.1% 11.1% -26.8% -63.0% 40.9% 42.9% 42.9% 42.9% 40.9%
Note:
1. CPM and CPC calculated based on total cost for comparison
2. This is not a full ROI or lifetime value model since future lifetime value not included
3. For SEO, budget is automatically placed into setup/creative costs and you have to estimate the number of clicks this will deliver.
4. For affiliate marketing, work back from Cost per sale to calculate sales, opportunities and clicks, so changing clickthrough and conversion rates impacts cells to left rather than right.
5. The blue cells indicate the main control parameters for each media which are important to improving cost effectiveness
Search
How to use this spreadsheet
1. First define expected conversion rates to opportunity (lead) and sale for different media (can be set to same value for simplicity).
2. Then establish realistic costs for purchasingdifferent media (CPM,CPA,CPC) as appropriate for your market.
3. Finally vary the mix of impressions for different media, remembering that there are limits to media that can be purchased (e.g. number of search terms). Vary the impressions to maximise number of
sales and minimise CPA while also minimising the risk
of purchasing too much of one type of media - a more balanced budget diversifies risk.
4. To compare the effectiveness of media look at differences in media for CPS and as % of budgetand % of sales.
Advertising Partners Internal
Blue cells = input variables - vary these for 'what-if' analysis
Orange cells = output variables (calculated - do not overtype)
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/digital-marketing-planning-spreadsheet-1056

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