Morphio deals with many different metrics across a variety of different tactics and platforms and we’d like to expand on where these metrics are coming from and how they’re calculated for you to better understand the data that you’re looking at and how to best present it to your team and clients.
Morphio breaks down conversions by two different types:
- Transactions: Transactions are used as a conversion metric for E-commerce clients
- Goal Completions: Goal Completions are used for clients that have conversions such as Form Submissions, Phone Calls or other conversion goals from Analytics.
All of our conversion data is sourced from Analytics and having a rock-solid tracking set up is critical in having accurate reporting and ultimately a successful Morphio set up.
Utilizing the total number of Conversions (Goal Completions or Transactions) from Analytics, Morphio divides that number by the number of Sessions and multiplies it by 100 to get the Conversion Rate %.
Example: 45 Goal Completions in October / 2000 Sessions in October * 100 = 2.25% Conversion Rate for the month of October.
Impressions in Morphio are directly compiled from Facebook Ads, Google Ads, LinkedIn and Microsoft Advertising and we use the total of all impressions from these platforms to give you an aggregated impressions metric in Morphio.
All of the sessions data that is presented in Morphio is from Analytics. It’s recommended that you use an Analytics view that filters bots and other traffic.
Morphio uses Facebook Ads, Google Ads, LinkedIn and Microsoft Advertising to compile the total cost of advertising on these platforms. Although the naming of Cost can differ from platform to platform, we consider any type of spending that goes into campaigns on these platforms to fall under the umbrella of Cost.
To calculate Revenue for Goal Completions, Morphio uses the Average Order Value and multiplies that number by the number of goal completions. For Transactions, we simply pull the Transaction Revenue from Analytics.
- Goal Completions: Average Order Value in October is $100 and there were 300 Goal Completions in Analytics. $100 *300 = $30,000 will appear in Revenue for Morphio.
- Transactions: Analytics has $30,000 in Transaction Revenue for the month of October. Morphio will use that Transaction Revenue amount for Revenue.
For leads-based businesses, we use a calculated metric called Estimated Revenue that attributes an approximate value to the leads that your website is getting from form submissions. We use the Lifetime Value (LTV) and Closing % along with your current amount of conversions in order to calculate an Estimated Revenue value.
Example : Client has 100 conversions (form submissions) and 50% of those conversions turn into Sales (Closing %) at a value of $500 (LTV) each.
100 conversions x 50% close rate x $500 LTV = $25,000 in Estimated Revenue
Cost Per Lead
CPL is a calculated metric that takes your total marketing Cost (from Facebook, Google, and Microsoft) and divides that amount by your number of Conversions (from Analytics). Please be advised that CPL includes both paid and organic conversions divided by Cost.
- In October there were 10 Paid Search conversions, 15 Paid Social Conversions, and 30 Organic conversions and the total cost was $10,000.
- 55 Conversions / $10,000 Cost = 182$ CPL for October.
Cost Per Lead Paid
CPL Paid is a calculated metric that takes your total marketing Cost (from Facebook, Google, and Microsoft) and divides that amount by your number of Conversions (from Analytics and excludes Organic conversions). Please be advised that CPL Paid only includes Paid tactics.
- In October there were 10 Paid Search conversions, 15 Paid Social Conversions, and the total cost was $10,000.
- 25 Paid Conversions / $10,000 Cost = 400$ CPL Paid for October.
Cost Per Mille (CPM)
CPM is a calculated metric that takes the Cost (from Facebook, Google, and Microsoft) and divides that cost by the amount of 1000 impressions and finally, we multiply this number by 100 in order to get the CPM metric.
- October Cost is $10,000 and there were 50,000 impressions.
- $10,000 / (50,000 / 1000) * 100 = $200 CPM for October.
Engagement Rate is a calculated metric that uses Engagements from Facebook (defined as likes, comments, shares, and clicks) along with clicks from Microsoft and Google Ads and divides that the total number of engagements by the total number of impressions and then we multiply that number by 100 to give us an Engagement Rate %.
- 100 engagements on Facebook (likes, comments, shares, clicks), 250 clicks on Google and Microsoft Ads and a total of 15,000 impressions for the month of October.
- 350 total engagements & clicks / 15,000 impression * 100 = an Engagement Rate of 2.3% for the month of October.
Return on Ad Spend
We calculate R.O.A.S by dividing Transaction Revenue or Estimated Revenue by the total Cost during a period of time.
Transaction revenue for the time period is $5,000 and the total Cost $1,000.
In this scenario, R.O.A.S is calculated as $5,000/$1,000 = 5 x 100% which gives us a total of 500% R.O.A.S.