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Since "the required frequency changes with the product and the competitive climate it is in", [2] the purpose of the GRP metric is to measure impressions compared to the number of people in the target for an advertising campaign. [3] GRP values are commonly used by media buyers to compare the advertising strength of components of a media plan.
The TRP and GRP metrics are both critical components for determining the potential marketing reach of a particular advertisement. Outside of television, TRPs are calculated using the denominator as the total target audience, and the numerator as the total impressions delivered to this audience x 100.
To calculate CPM, marketers first state the results of a media campaign (gross impressions). Second, they divide that result into the relevant media cost: Advertising Cost ($) / Impressions Generated. For example: Total cost for running the ad is $15,000. The total amount of impressions generated is 2,400,000. ($15,000/2,400,000)=$0.00625
The following formula is used to calculate the reach of a marketing campaign, = / where is the total number of unique users (i.e., reach) is the total number of impressions
Frequency capping is a feature within ad serving that allows to limit the maximum number of impressions/views a visitor can see a specific ad within a period of time. For example, "three views/visitor/24-hours" ("three views per visitor per 24-hours") means after viewing this ad three times, any visitor will not see it again for 24 hours.
Cost per impression, along with pay-per-click (PPC) and cost per order, is used to assess the cost-effectiveness and profitability of online advertising. [1] Cost per impression is the closest online advertising strategy to those offered in other media such as television, radio or print, which sell advertising based on estimated viewership, listenership, or readership.
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In measuring view-based conversions, there is room for manipulation. Because viewthrough conversions are tied to the setting the ad network's cookie and later matching it up via the same ad network's page tag loaded on a conversion page, [4] less scrupulous ad networks have taken advantage of this by purchasing cheap below-the-fold ad inventory more for the purposes of dropping as many cookies ...