Turns the price of a newsletter sponsorship, the size of the list and the open and click rates you expect into CPM, cost per click and the conversion rate you need to earn the price back. The open and click rates are your inputs, with no built-in benchmark. For marketers weighing a sponsorship slot.
How to use it
Enter the figures the publisher gives you, or your own assumptions. The result updates as you type, and nothing leaves your browser.
- Pick your currency and enter the price of the sponsorship and the size of the list.
- Enter the open rate and the click rate on opens, from the publisher's media kit or your own estimate.
- Enter what one signup or sale from this audience is worth to you.
- Read the CPM, the cost per click and the break-even conversion rate, and check the finding.
How Reavlo tests this
The calculator uses standard advertising arithmetic, run in your browser. Every step is listed under Show the math.
- Expected opens = list size × open rate.
- Expected clicks = expected opens × click rate on opens.
- CPM by subscribers = price ÷ list size × 1,000.
- CPM by opens = price ÷ expected opens × 1,000.
- Cost per click = price ÷ expected clicks.
- Signups to break even = price ÷ value of one signup.
- Break-even conversion rate = signups to break even ÷ expected clicks.
Amounts are in major units of the currency you pick (ISO 4217) and rounded to 2 decimals; counts are rounded to 4 decimals.
Findings. One rule runs on the result.
- NSP-01, break-even needs more conversions than clicks (critical). Even if every click converted, the sponsorship would not earn back its price on these numbers. This follows from the arithmetic and is not a benchmark.
Limits. Open rates from email clients that preload images overstate real opens, so treat the open rate as an estimate. The calculator counts one issue and one conversion value; it does not model repeat purchases, unsubscribes or discounts you negotiate, which you can enter by adjusting the price and rates.
Questions
What is a good CPM for a newsletter sponsorship?
Reavlo shows no target CPM, because no source we could cite supports one number. Compare the CPM of the slots you are offered with each other and with what a click is worth to you.
Which open and click rates should I enter?
Use the figures the publisher shares for recent issues, and run a lower case as well. The calculator takes no default so that the result reflects your inputs only.
What does the break-even conversion rate mean?
The share of clicks that must turn into a signup or sale for the sponsorship to earn its price back. If it is above 100%, it cannot pay for itself on these numbers.
Why are there two CPM figures?
CPM by subscribers divides the price by the whole list, which is how many slots are quoted. CPM by opens divides it by the people expected to open, which is closer to who sees your message.