Free calculator
PNO calculator
Share of costs in revenue: what percentage of your sales the advertising swallowed. The basic metric of Czech PPC campaigns.
Share of costs in revenue (PNO)
The lower the PNO, the more cheaply your advertising sells. The limit of what's acceptable is set by your margin.
- PNO
- — %
What PNO is and how it's calculated
PNO (the Czech metric "podíl nákladů na obratu", share of costs in revenue) tells you what percentage of revenue went on the advertising that brought it in:
PNO = advertising costs / revenue × 100
A campaign for 10,000 Kč that brought revenue of 50,000 Kč has a PNO of 10,000 / 50,000 × 100 = 20 %. In ad platform metrics, conversion value is usually used as the revenue.
What PNO is good
There is no universal threshold. Acceptable PNO is determined by your margin. If 30 Kč of gross profit remains from every hundred crowns of revenue, then a PNO of 30 % is the point where advertising eats the entire margin; a profitable campaign needs a lower PNO. A PNO above 100 % means the advertising costs more than the revenue it brought in at all.
The costs should honestly include everything related to the campaign: besides the ad platform credit, also the campaign management fee if you pay one. PNO calculated from clicks alone looks better than reality.
PNO and ROAS are two sides of the same coin
ROAS is the inverse of PNO: a PNO of 20 % corresponds to a ROAS of 500 %. Czech practice talks about PNO ("we want to stay under 15 %"), international tools about ROAS; the conversion is ROAS = 100 / PNO × 100.
Where to go next
You can do the maths. But what next? How to turn customers who bought once into customers who buy repeatedly is the subject of the book Opakovaný prodej.