How to Use the Ad Creative Production ROI Calculator
Producing a new ad creative is itself an investment, on top of the media spend. This calculator adds creative production cost to ad spend budget for total cost, then compares it against expected revenue derived from CPM, CTR, conversion rate, and average order value.
The math divides ad budget by CPM to get impressions, multiplies by CTR to get clicks, then multiplies by conversion rate to get conversions. Multiplying conversions by average order value gives expected revenue; subtracting total cost and dividing by total cost gives ROI.
Because production cost is included, a high-budget, high-production-value video won't show a strong ROI unless CTR and conversion rate are high enough to justify it. Use this to compare several creative options before deciding what to greenlight.
Frequently Asked Questions
The real total investment in a campaign includes both ad spend and creative production cost. Leaving out production cost overstates ROI, so this calculator adds it to ad budget for total cost.
If you have measured CTR and conversion rate from similar past creative, use those for the most accuracy. For brand-new creative, apply a conservative industry average or your account's historical average.