Marketing Impact Calculator

Formula

The formula to calculate the Marketing Impact (MI) is:

\[ MI = \frac{M \cdot E \cdot R}{C} \]

Where:

MI – The marketing impact.
M – The total marketing spend in dollars ($).
E – The effectiveness of the marketing campaign (on a scale of 0 to 1).
R – The reach of the marketing campaign (number of people).
C – The cost per customer acquisition in dollars ($).

Definition

Marketing Impact (MI): The measure of the influence of marketing activities on consumer behavior and decision-making.
Total Marketing Spend (M): The total amount of money spent on marketing activities.
Effectiveness of the Marketing Campaign (E): A measure of how effective the marketing campaign is, on a scale of 0 to 1.
Reach of the Marketing Campaign (R): The number of people reached by the marketing campaign.
Cost Per Customer Acquisition (C): The cost to acquire one customer.

Example

Let's say the total marketing spend (M) is $10,000, the effectiveness of the marketing campaign (E) is 0.8, the reach of the marketing campaign (R) is 50,000 people, and the cost per customer acquisition (C) is $20. Using the formula:

\[ MI = \frac{10,000 \cdot 0.8 \cdot 50,000}{20} = 20,000,000 \]

So, the marketing impact is 20,000,000.