Ad Spend Efficiency Calculator

How to Use the Calculator – Step-by-Step

1. Enter Revenue from Ads
   Input the revenue directly attributable to your ad campaigns.

2. Enter Total Ad Spend
   Include all advertising expenses, such as media spend, tools, and agency fees.

3. Click ‘Calculate’
   View your Ad Spend Efficiency as a percentage.

Tip: A higher efficiency percentage means you’re generating more revenue for every rupee spent.

Understanding Ad Spend Efficiency

Ad Spend Efficiency is a performance metric that tells you how effectively your ad investment generates revenue. It’s expressed as a percentage—anything over 100% means your ads are generating more than you spend.

• 100% Efficiency = Break-even

• Above 100% = Profitable

• Below 100% = Unprofitable (you’re spending more than earning)

Industry Benchmarks for Ad Spend Efficiency

These are average efficiency percentages across various industries to help you benchmark:

Note: These are reference ranges. Your target efficiency should align with your margins and business model.

Practical Example

Scenario:

You generated ₹1,50,000 in revenue and spent ₹50,000 on ads.

Calculation:

Ad Spend Efficiency = (₹1,50,000 ÷ ₹50,000) × 100 = 300%

Interpretation:

For every ₹1 spent, you’re earning ₹3 in return. This is a highly efficient campaign.

Tips to Improve Ad Spend Efficiency

• Optimise Audience Targeting: Better segmentation = higher ROI.

• A/B Test Ad Creatives: Find out which visuals or copy drive more revenue.

• Focus on High-LTV Products: Sell products or services with a high customer lifetime value.

• Track Attribution Properly: Ensure revenue data aligns with actual ad sources.

• Refine Landing Pages: Improve conversion rates to boost revenue without increasing spend.