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The math doesn’t work. Sometimes marketing is just that simple. 

The client wanted the campaign to generate a million dollars. 

The client wanted to spend $1500 on the service provided and $500 in ads. 

Let’s play this out. 

The client is $2000 in on marketing expenses. 

At $500 in advertising, the client can expect about 250 people to land on the campaign landing page. 

The campaign landing page converts at 2%. 

That means that 5 people will purchase. 

The average purchase price is $20. 

The client is bringing in $100, but is putting out $2000. 

The math doesn’t work. 

Here’s the formula to assess how a campaign is performing. 

service + advertising costs = COGS

advertising spend / number of users landing on site = cost of traffic 

site traffic x conversion rate = number of conversions

conversions x average purchase price = top line revenue

top line revenue – COGS = return on marketing investment

Give a thumbs up if this marketing math could have saved you thousands.