SASC

Marketing & Advertising

Search Advertising Scenario Comparison Calculator

Calculate and compare two paid-search scenarios without mixing their spend, CPC, conversion-rate, or revenue assumptions.

Scenario A estimated clicks-
Scenario B estimated clicks-
Scenario A estimated conversions-
Scenario B estimated conversions-
Scenario A attributed revenue-
Scenario B attributed revenue-
Scenario A gross contribution after ads-
Scenario B gross contribution after ads-
Scenario B minus A contribution-
Scenario B minus A conversions-

Decision view

Paid-search scenario dumbbell comparison

Paid-search scenario dumbbell comparisonEach row compares Scenario A and B on its own normalized scale while preserving the exact click, conversion, revenue, and contribution values.
Exact scenario comparisonScenario B average CPC changes while all other entered assumptions remain constant.
Scenario B average CPCScenario A estimated clicksScenario B estimated clicksScenario A estimated conversionsScenario B estimated conversionsScenario A attributed revenueScenario B attributed revenueScenario A gross contribution after adsScenario B gross contribution after adsScenario B minus A contributionScenario B minus A conversions

How to use Search Advertising Scenario Comparison Calculator

  1. Enter a complete set of assumptions for each scenario.
  2. Enter the gross margin on attributed revenue.
  3. Compare paired endpoints and incremental results.

Calculator guide

Understanding Search Advertising Scenario Comparison Calculator

Paid-search scenarios should be compared through the complete click, conversion, revenue, margin, and ad-spend chain.

Calculate scenario A traffic Scenario A keeps its own CPC and conversion rate.
Calculate scenario A contribution Only the gross-margin share of attributed revenue is available before ad spend.
Calculate scenario B traffic Scenario B combines higher spend with lower CPC and higher conversion rate.
Calculate scenario B contribution The lower revenue per conversion is retained rather than replaced by scenario A's value.

Calculation method

How the calculation works

Calculate clicks, conversions, attributed revenue, and margin contribution separately for two complete paid-search scenarios. Divide spend by CPC for clicks, apply conversion rate, multiply by revenue per conversion, then subtract spend from gross-margin dollars.

Detailed calculation process

Compare two complete paid-search contribution paths

The default compares $25,000 at $2.40 CPC and 4.2% conversion with $30,000 at $2.10 CPC and 4.8% conversion, using a 58% gross margin.

General formula: Clicks_i = Spend_i/CPC_iConv_i = Clicks_i(c_i/100)Revenue_i = Conv_i v_iContribution_i = Revenue_i(m/100)-Spend_iDelta_Contribution = Contribution_B-Contribution_ADelta_Conv = Conv_B-Conv_A Each scenario is calculated independently. Revenue is converted to gross-margin dollars before advertising spend is deducted, so the final comparison is contribution rather than attributed revenue.

What each symbol means

i Scenario identifier A or B (no unit).
Spend_i Advertising spend for scenario i ($).
CPC_i Average cost per click for scenario i ($/click).
c_i Click-to-conversion rate for scenario i (%).
v_i Attributed revenue per conversion for scenario i ($/conversion).
m Gross margin on attributed revenue (%).
Clicks_i, Conv_i Estimated clicks and conversions (counts).
Contribution_i Gross-margin dollars less ad spend ($).

Worked substitution with the default inputs

1. Calculate scenario A traffic Clicks_A = 25,000/2.40 = 10,416.6667 clicksConv_A = 10,416.6667(4.2/100) = 437.5 Scenario A keeps its own CPC and conversion rate.
2. Calculate scenario A contribution Revenue_A = 437.5(260) = $113,750Contribution_A = 113,750(0.58)-25,000 = $40,975 Only the gross-margin share of attributed revenue is available before ad spend.
3. Calculate scenario B traffic Clicks_B = 30,000/2.10 = 14,285.7143 clicksConv_B = 14,285.7143(4.8/100) = 685.7143 Scenario B combines higher spend with lower CPC and higher conversion rate.
4. Calculate scenario B contribution Revenue_B = 685.7143(250) = $171,428.5714Contribution_B = 171,428.5714(0.58)-30,000 = $69,428.5714 The lower revenue per conversion is retained rather than replaced by scenario A's value.
5. Reconcile the incremental result Delta_Contribution = 69,428.5714-40,975 = $28,453.5714Delta_Conv = 685.7143-437.5 = 248.2143 Both incremental contribution and conversions favor scenario B under the entered assumptions.

The default gives scenario B 248.214 more conversions and $28,453.57 more modeled gross contribution after ad spend.

Purpose-built visual

Paid-search scenario dumbbell comparison

Four paired rows compare clicks, conversions, revenue, and contribution while retaining each metric's own labeled scale.

Live The chart is regenerated from current inputs.
Units Every axis, marker, and endpoint retains its stated unit.
Check The chart reconciles to the displayed calculation.

Worked situations

Practical examples

  • The default compares $25,000 at $2.40 CPC and 4.2% conversion with $30,000 at $2.10 CPC and 4.8% conversion, using a 58% gross margin.
  • The default gives scenario B 248.214 more conversions and $28,453.57 more modeled gross contribution after ad spend.

Better inputs

Useful tips

  • Change one input at a time and confirm both the result and visual move.
  • Keep the units stated beside every field.
  • Retain intermediate precision and round only the reported result.

Before relying on the result

Limitations and common mistakes

  • Attribution is not proof of incrementality.
  • Auction conditions, query mix, tracking loss, refunds, and offline sales are excluded.
  • Operating costs beyond gross margin and ad spend are not modeled.

Reference

Key terms

CPC
Advertising spend divided by paid clicks.
Attributed revenue
Revenue credited to the modeled advertising conversions.
Contribution
Attributed gross profit less advertising spend.

Important note

Calculated from the entered campaign values. Validate attribution, incrementality, lag, margin, and observed source data before making decisions.

Frequently asked questions

Why compare contribution instead of revenue?

Revenue does not account for gross margin or ad spend.

Does scenario B guarantee better results?

No; it is conditional on the entered assumptions.

Is attribution incremental?

Not necessarily.

Can CPC and conversion rate change together?

Yes, and each scenario accepts both independently.