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How to Calculate Impact

Impact Score Formula:

\[ \text{Impact Score} = \frac{\text{Reach} \times \text{Engagement}}{\text{Cost}} \]

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1. What is Impact Score?

Impact Score is a marketing ROI metric that measures the effectiveness of marketing campaigns by calculating the relationship between reach, engagement, and cost. It provides a comprehensive view of campaign performance efficiency.

2. How Does the Calculator Work?

The calculator uses the Impact Score formula:

\[ \text{Impact Score} = \frac{\text{Reach} \times \text{Engagement}}{\text{Cost}} \]

Where:

Explanation: The formula multiplies reach by engagement to get total campaign impact, then divides by cost to determine efficiency per monetary unit spent.

3. Importance of Impact Score Calculation

Details: Impact Score helps marketers optimize budget allocation, compare campaign effectiveness across different channels, and demonstrate ROI to stakeholders. Higher scores indicate more efficient campaigns.

4. Using the Calculator

Tips: Enter reach and engagement as whole numbers (counts), and cost in your local currency. All values must be positive numbers (cost must be greater than 0).

5. Frequently Asked Questions (FAQ)

Q1: What is considered a good Impact Score?
A: There's no universal benchmark as scores vary by industry and campaign type. Compare scores across similar campaigns to establish internal benchmarks.

Q2: How is engagement typically measured?
A: Engagement can include clicks, likes, shares, comments, conversions, or any other meaningful interaction with your campaign content.

Q3: Should I include all campaign costs?
A: Yes, include all relevant costs: ad spend, creative development, platform fees, and any other direct expenses associated with the campaign.

Q4: Can Impact Score be negative?
A: No, since all input values must be positive, the Impact Score will always be a positive number or zero.

Q5: How often should I calculate Impact Score?
A: Calculate it for each campaign and periodically for ongoing campaigns to track performance trends and make data-driven optimization decisions.

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