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Guru Search Results: 30 matches were found

Wednesday, August 06, 2003 #6113
converting CPPs to cpms? thank you!

The Media Guru Answers(Wednesday, August 06, 2003 ):
Click here to see the Guru on CPP / cpm conversion.

Monday, August 04, 2003 #6103
Dear Guru, Thank you for answering my question about digital signage cpm. You mentioned that it was difficult to give an answer without knowing some missing facts. Let me rephrase the question with more details: 1. There are 2500 locations 1 screen per location 3 minute loop of 18x10 second spots. Assumptions are: 500 visitors per location per day(18hrs). The locations are all part of a convenience store chain of 7/11 type and the screens are located right at the cash register, so there is a great chance that customers waiting in line would be staring at it for at least the length of the loop. How do I calculate my cpm? 2. What are the typical cpms in the industry?

The Media Guru Answers(Wednesday, August 06, 2003 ):
The Guru does not believe that a person usually stands on line at a c-store cashier for as much as three minutes beyond the time during which the customer's attention is on the cashier. Given your added information, the Guru might raise his previous 10% of traffic to as much as 25%.

In-store signage with full video / animation doesn't have "typical cpms" in the Guru's experience. A static sign in such a store's front window might cost $300 per month, and get tem times as much street traffic as in-store traffic. This would be a cpm of around $2. The animation might make a doubling of cpm worth while

Friday, August 01, 2003 #6099
Dear Guru, I have a cpm calculation Question for Digital Signage. 2500 locations 1 screen per location 3 minute loop of 18 10 second spots Assumptions are: 500 visitors per location per day(18hrs) How do I calculate my cpm?

The Media Guru Answers(Saturday, August 02, 2003 ):
A missing fact is the likelihood of a visitor watching the whole loop, or seeing it multiple times. If you assume each visitor sees the whole loop, once, your daily audience 1,250,000 (2500 x 500).

But the Guru sees this audience as unlikley unless the screen is at a cah register or somewhere with no distractions and a reason to stand still for 3 or more minutes.

Without knowing the enviroment of the locations (small store or busy street), perhaps 10% of the above, calculated audience is closer to reality.

Thursday, July 03, 2003 #6059
how do you convert CPC to cpm?

The Media Guru Answers(Thursday, July 03, 2003 ):
Assuming that by "CPC" you mean "cost per click" then you need CTR (click thru rate) as another variable.

CTR = total clicks ÷ total ad impressions (ad serves).

CPC times CTR times 1000 = cpm

Saturday, June 21, 2003 #6029
Dear Guru, Please help me to clarify these issues : - What CPT and cpm stand for ? - Are the formulas to calculate them as follows : CPT=(Costx1000)/Impression cpm=(Costx1000)/Reach(000) - Impression and Reach in thousand are not the same,are they? Impression include duplication but the reach in thousand does not. Impression = Reach(000)x OTS? - Therefore, there must be different b/w CPT & cpm. But it seems that most books consider them as the same. - GRP = OTS x Reach (%)or GRP = Frequency x Reach (%)? - Does OTS have some meaning of impression? Since these issue confuse me now so much and I current get a stuck in preparing a report. Pls do reply me as soon as possible. Many thanks.

The Media Guru Answers(Saturday, June 21, 2003 ):
You have tangled up several ideas and defintions. In different countries, some of these terms are used differently or not used. For example, in the Guru's base of the U.S., we do not use "opportunities to see (OTS)," and though you may be in Thailand, the Guru will not assume so.

cpm stands for cost per thousand impressions; the "M" is the Roman numeral M, meaning one thousand. CPT is not familiar in the US, but is probably another indicator of Cost per Thousand impressions.

The Guru most often sees "OTS" used as equivalent to "impressions" but sometimes as a reference to average frequency, so here are the simplest definitions.

"Impressions" are the number of advertising exposures, i.e. the number of different people exposed to advertising times the average number of occasions on which they are exposed. Thus, duplication is included.

"number of different people exposed" is equivalent to "reach."

"Number of occasions on which they are exposed" is equivalent to "frequency."

cpm is cost of advertising divided by impressions in thousands. Reach is not involved.

When reach is expressed as a percentage of a target group, then reach x frequency = GRP.

Monday, May 12, 2003 #5966
Dear Guru, When we calculate cpm of a specific TV channel (not specific program), shouldn't we take the average/standard rate of a 30 seconds primetime spot? One of our clients opposed to that and said that I should have taken the highest rate available to calculate i.e. rate of spot in the most expensive program available in that particular channel. And my boss was also agreeable to that. I was sort of cornered that day. Pls. help me finding the correct way to calculate cpm for TV Channels. A. M. Toolie

The Media Guru Answers(Monday, May 12, 2003 ):
If you are looking for a representative cpm to give a picture of the channel and its appropriateness, your way of averaging is right. The Guru doesn't see the use of picking a single program whether it's the highest rated, best cpm or any other extreme, if your ultimate goal is buying schedules.

Tuesday, November 12, 2002 #5606
Hi guru, could you please tell me how to calculate "media inflation" and what factors will affect "media inflation"?

The Media Guru Answers(Tuesday, November 12, 2002 ):
Media inflation is not a standard term. Generally it should mean the rate of increase in media costs, probably best expressed as the year-on-year change in efficiency, i.e. CPP or cpm.

Based on this, the factors are change in media unit cost and change in media unit average audience.

Sunday, January 06, 2002 #4981
I am trying to compare cpm between print and radio. The demo is Adults 18-54. I have the readership for the demo for the MSA for the print. I have the gross impressions for the radio and have calculated a cpm for all (both the print and radio). Is this correct? Can I compare readership against GI's?

The Media Guru Answers(Sunday, January 06, 2002 ):
Yes, readership is equivalent to impressions.

Thursday, January 03, 2002 #4973
Can you please explain the difference between TV network and spot buying. What is the equivalize and non-equivalize concept. Why is it used in network buying and not in spot(units are not equivalized). Also can you please explain the reweight concept. How do you come up with reweight cpm. Why can you just do a straight year cpm comparison.

The Media Guru Answers(Friday, January 04, 2002 ):
Click here to see past Guru responses about equivalizing. "Why use it?" is a good question regardless of the network versus spot element. The use of equivalence is an artifact of mass buying by corporation wherein large numbers of :15's and :30s are bought but need to be readily comparable. In spot, this type of buying is less common. Also, network :15s are almost alwasy priced at 50% of :30's making equivalence simple. In spot the ratio is usually higher, and inconsistent.

In network, the geography for CPP / cpm is consistent, so that CPP and cpm can be converted back and forth based on simple multiplication or divsion by the relevant demographic universe. In spot however, while CPP is based on the defined DMA (or occasionally metro) geography, cpm is based on impressions generated anywhere, so there is no simple mathematical relationship.

For other network buying concepts use the Go to the Guru Archives Search Engine.

Wednesday, November 21, 2001 #4902
We are trying to figure out a gross cpm for a client who we have given a net cpm to. She is looking to compare the two. (I am not speaking in terms of gross/net rate -agency 15%) Here is a scenario that I am trying to figure out: By publication - 439,000 target audience $51,000 FP rate = $116 net cpm. How would we go about getting the gross cpm to compare to this? From a total plan standpoint, we also presented net cpms and the client is looking for a gross cpm for comparison. How exactly would I go about figuring this out?

The Media Guru Answers(Wednesday, November 21, 2001 ):
The Guru does not understand your question. The common definition of the terms gross rate / net rate referes to the difference between a rate including agency commission (traditionally 15%) and a rate not including this commission. This definition would yield a $135.29 gross cpm for $116 net. The only reason the gross would be different would be if there was some other understanding about agency commission / compensation.

The formula to calculate gross cpm, when commission is 15% is:
net cpm (1 - 0.15).

Tuesday, November 13, 2001 #4883
hi, i've been dealing with an ad agency and fighting for a concept event with a big cost, part of the event is a promotion to require a proof of purchase in order to join. They say they need to know the media implications of this, they need to measure if it will increase sales, and if the media planning is effective. I'm just curious, how do i make an effective media plan to justify that the cost of the event is just minimal also plus the media mileages they get from posters, streamers, and merchandizing.

The Media Guru Answers(Wednesday, November 14, 2001 ):
The simplest to calculate and for them to understand is to determine the number of exposures of all the elements and then put a value on these exposures using a cpm the agency experiences in some cmparable medium, such as out-of-home.

Monday, May 21, 2001 #4418
I am just starting a job dealing with Direct Response Television Advertising. Seeing that traditional TV media rates are valued based on ratings points. How do stations develop their rates for Direct Response Television? Is Cost per Thousand a measure which can be used in Direct Response Television analysis or is the measure just Cost per Order? I have a client which swears that I need to give him in depth Cost per Thousand numbers but our agency owner says that is ludicrous in DRTV. Thanks for any info.

The Media Guru Answers(Tuesday, May 22, 2001 ):
Cost per thousand (cpm) is mereley the cost of a spot divided by its audience. All station inventory is essentially priced at least partially based on a cost/audience ratio, which determines the value of the spot to the station.

However, the value to a DR advertiser is based on cost per response, whether that is measured in inquiries or orders. Most DR practicioners have learned that there is little relationship between audience size and response. It is not unusual to get more orders from a low-rated late fringe program than a prime time program.

So, while it is possible to calculate cpm in a DR buy, and inherently harmless to report cpms, it would be wrong to judge a buy on this standard. If your owner objects to the waste of your time and the client's, he is justified in his objections.

Wednesday, May 02, 2001 #4357
How do I convert cpm's from SPARC to CPPs by market?For example, NY radio Average cpm for 3Q 01'=8.40 for A18-49. Its population is 8097000.

The Media Guru Answers(Saturday, May 05, 2001 ):
Think of the CPP as the cost of 1% of the specified population. So, the general rule for cpm vs CPP is
CPP = cpm X 0.01 X population in thousands.

This requires the cpm and cpp to be based on the same geography, so be careful. If you're working with DMA cpm and DMA CPP, that's fine, but typically cpm is based on total survey area (TSA) and you are looking for metro CPP.

Tuesday, March 20, 2001 #4272
How do you calculate cpm?

The Media Guru Answers(Tuesday, March 20, 2001 ):
Cost ÷ audience impressions in thousands

Tuesday, June 13, 2000 #3548
I am in the process of evaluating a print proposal submitted by a business to business annual register with company listings/profiles, accessible by category. In addition to receiving a P4C ad, my client wil also receive 8 bold type listings with descriptive information and 4 bold type listings(company name and phone # only) throughout various sections of the register. At first glance the package looks like a great idea. The circulation is nearly 100% targeted, the cpm (based on the P4C alone) is very low, and there are additional merchandising perks that will expose my client to their target for one full year. The problem is, I must put a "value" on each component of the package. Do you have any ideas on how to place a value on the "bold type listings" described above?

The Media Guru Answers(Thursday, June 15, 2000 ):
Your situation is analagous to evaluating reach versus GRPs or a full commerical in a special versus billboards.

Since the deal seems efficient and effective simplay based on the P4C, any value you give to the other elements can be arbitrary and will be just for the sake of dicsussion. Why not calculate the impressions of all the other elements and price them at 25% of the P4C cpm?

Wednesday, February 23, 2000 #3239
Dear Guru: I need to analyze a cpm tv negotiation on w1849. I would like to transfer the negotiated w1849 cpm to w2549. Can you please explain the formula to transfer Thanks.

The Media Guru Answers(Thursday, February 24, 2000 ):
Step 1: calculate the vph ratio (or impressions ratio) of w25-49 versus w18-49.
Step 2: divide the w18-49 cpm by this ratio.

Suppose w18-49 cpm = $10.00
Suppose the w18-49 vph is .700 and w25-49 is .600
then the ratio is
.600 .700 or
Then $10.00 0.857 = $11.66

It's best if you have the actual vph or impressions of your buy, but you can make an estimate from the daypart averages.

Wednesday, January 05, 2000 #3096
Oh Great Guru -- I need to calculate GRPs, but I don't have reach or frequency on some tv buys. I do have cpm, total impressions and impressions/week and the total population of the demographic. Can you supply a formula for calculating GRP based on what I have?

The Media Guru Answers(Wednesday, January 05, 2000 ):
(Impressions divided by population) x 100 = GRP.

For example,
if impressions are 2 million and population is 1 million, GRPs = 200.

Friday, October 29, 1999 #2919
Hi Guru! I'm trying to calculate magazine cpms. Should I use the ABC Audited numbers, or the total audience numbers (some magazines have high "hand-off" rates)?

The Media Guru Answers(Friday, October 29, 1999 ):
Consumer magazine cpms are ususally compared based on total audience. High pass-along readership is good up to a point. You're most likley trying to reach people not necessarily owners of copies of magazines.

Thursday, October 28, 1999 #2916
Hi Guru, How is the cpm rate calculated by the web publishers?. what are the criteria adapted by them to arrive on their cpm rate?(say $30 or $40 for every 1000 impression).

The Media Guru Answers(Thursday, October 28, 1999 ):
The cpm = Ad Cost ÷ Ad impressions. Many sites quote ad rates in terms of cpm. That is you can order the number of impression you want your banner to receive, and get exactly that number priced at "x" cpm.

Several issues are taken into consideration in setting cpm prices:

  • Competitive pricing - a site can't successfully charge double the cpm of another with similar audience and content.
  • Traffic - up to a point, more size is considered to have a premium value. Then there will be econimies o scale
  • Unique audience- hard to reach demographics are more valuable

Tuesday, April 27, 1999 #2474
I am new to the newspaper world and need some help. I have my cost per inch and my circulation. I need to compare cpm newspapere to radio and tv. I have my radio and tv cpm but not sure what to use on newspaper my audience is a 25-54 and i buy 28" ads... is their a quick way to convert circulation to audience and do I use cost per inch or cost per 28"... My tv cpm is around $15.00 and my radio is around $8.00 any help would be appreciated.....

The Media Guru Answers(Tuesday, April 27, 1999 ):
Compare the cpm of the ad you would use, if you are using a tv :30 then compare the cpm for a 30 second unit with your 28" newspaper cpm.

Circulation does not "convert" to audience. Each newspaper, theoretically, has a different audience in relation to its circulation. But, in reality, the differences have a fairly narrow range and you can use average readership figures from The Newspaper Advertising Association site.

Tuesday, March 30, 1999 #2421
The need: I am looking for a way to factor 'page exposure' data into mainstream media metrics such as cpm or GRP. MRI tracks and calculates page exposure using the following: (#_of_days_magazine_is_read * #_issues_read * %_of_pages_read)= avg_page_exposure I believe such data would not only provide a more accurate picture of a readers exposure to the ad pages but could alter cpm & GRP rates. My Reasoning: cpm=(ad_rate/audience); audience=(circ * readers); 'readers' is thenumber of different set of eyes per issue (single exposure). This number does not take into account how long or to what extent the reader looked at the publication -- it could be the mailman delivering the magazine who remebers the cover or it could denote a subscriber who reads the issue cover to cover. Enter the issue of page exposure. Suppose I am considering a magazine with a cpm of .01851 = 40,400/(704,000 * 3.1). However, if this same magazine provided me with a page exposure rate of .99 = (3 * 1 * .33) -- which says that the audience takes 3 days to read the issue and reads about 33% of the issue a day (which I know is unrealistic, but hear me out). Now suppose I take the .99 exposure rate and add it to the 'reader' and recalculate cpm --- 40,400/(704,000 * (3.1 +.99))= .01404 -- I get a much lower cpm. My Question: Why can't I make this type of calculation with page exposure data -- where is the break down in my logic or math? Any insights would be GREATLY appreciated. Thanks in advance!

The Media Guru Answers(Thursday, April 01, 1999 ):
First, overall, yes it is a reasonable and not unusual concept to adjust cpm according to additional measured factors reported for magazines. However, there are some minor and some major issues with your process in terms of labels and decimal places, etc.

Yes, cpm is ad rate readers. Readers is circulation times readers per copy (refer to the explanation of MRI information which the Guru did for you in query #2403).

So the basic cpm -- cost per thousand impressions -- in your example is actually $18.51, assuming you mean $40,400 is your ad csot, 704,000 is circulation and 3.1 is readers per copy.

The exposure rate is a factor, not an add on. So the adjustment would be 3.1 times 0.99 or 3.069 or virtually no change. The cpm is now $18.70. If there was a very different page exposure factor it would make a difference. It is a valid way to reaxamine cpms.

Tuesday, March 23, 1999 #2403
I have been researching these questions for a number of days now and have been unsatisfied with the answers I have been receiving. I am a new member and new to this field, any direction would be most helpful. Thank you in advance... 1) What is the difference between Rate Base (a number guaranteed by publishers and audited by ABC) and Readership (a number provided by, say, MRI) levels for magazine publications? 2) Which number (above) is most often used to calculate cpm (I believe this calculation is ad_page_rate/readership)? 3) Is 'readership' really a composite number (perhaps a result of some other formula)? If so, does Page Exposure Rates factor into 'readership'?

The Media Guru Answers(Tuesday, March 23, 1999 ):
If you went to AMIC's Rates, Dates and Data area and clicked the link
"Audience data from MRI is available for
Fall 1998 for Total Audience, Circulation and Readers Per Copy
" you would see the table from which this image is taken:

The following discussion will use this table as a visual aid.

"Rate base" refers to circulation, the actual number of copies of a publication printed and sold for the average issue over a specified period of time. In the table, "Circulation" is the middle column of data.

"Readership" is the number of readers of the average issue. It includes "passalong" readers, who may not be the buyers / subscribers but read some else's copy. In almost every case, total readership will be greater than circulation. The first three columns of the MRI table we are looking at are readership numbers.

cpm can be calculated based on either circulation or readership. The circulation cpm (Cost Per Thousand) calculation is: divide ad cost by the number of copies in circulation.

The readership cpm calculation is: Divide ad cost by number of readers of an average issue. Often readers within a specified demographic the advertiser is targeting are the divisor in this second calculation. As a planning tool, the readership cpm is more common than the circulation cpm, especially for categories of print that use readership research, such as MRI.

Many people misinterpret the common reporting of "readers per copy." The last three columns of the MRI data are readers per copy figures. What audience research actually measures is readership. A random sample of consumers is interviewed and asked about their magazine reading to determine how many readers there are for an average issue of a magazine. Readers per copy is a calculation done after the fact, dividing the readers measured by the circulation. It is a handy factor used to compare magazine pass-alongs or to calculate other audience elements.

Monday, March 01, 1999 #2363
Dear Guru, We found a formula that is supposed to calculate newspaper impressions. (insertion X circulation*2.28*0.58)/1000) We thought that this was calculated simply by multiplying the circ by the # of insertions. Do you know what this formula could be doing? Thanks

The Media Guru Answers(Monday, March 01, 1999 ):
The Guru believes this formula is meant to estimate persons impressions. "Circulation" represents just copies, not readers.

The 2.28 factor looks like the Sunday average adult readers per copy. The 0.58 then would seem to be the composition for some demographic group, perhaps 18-49. The "/1000" seem to be meant to set the decimal for the particular context in which you found the formula, it will cause the result to be expressed in thousands. Perhaps the number of impressions derived from this formula was going to be used to calculate cpm.

See The Newspaper Advertising Association research databank. for other readers-per-copy and demographic composition data

Thursday, January 07, 1999 #2253
How can I use Spot Quotations and Data (SQAD) quarterly TV Cost Per Rating Point Report (HH Ratings)to calculate cpm? Whether SQAD has info. of cpm for each DMA?

The Media Guru Answers(Friday, January 08, 1999 ):
There is a small difficulty in that the total audience usually used to calculate cpm extends beyond the DMA. But for your purposes this can probably be ignored.

"Cost per Rating Point" means the cost of buying audience impressions equal to one percent of the population. Therefore, dividing DMA CPP by 1 percent of the DMA population yields DMA cpm.

Wednesday, December 02, 1998 #2194
Dear Guru, can you name any media analysis tools and media predictive tools that media planners use on a regular basis without being too technical, of course. Many thanks

The Media Guru Answers(Thursday, December 03, 1998 ):
Here are several:

  • Reach: the number of different target households or persons exposed to a campaign (most often expressed as a percentage of the target universe, and most often calculated over a 4-week period).
  • Frequency: The average number of exposures of the campaign to those reached.
  • Gross Rating Points (GRP) / Target Rating Points(TRP): Essentially interchangeable terms for the sum of the audiences of all the ad units in the campaign, expressed as a percentage of the target universe.
  • Gross Impressions: Same audience count as GRP/TRP but expressed in whole numbers rather than percents.
  • CPP / Cost per GRP and cpm / Cost per thousand impressions: should be self evident from the previous. These are referred to as the "efficiency."
  • Effective reach: Those in the "Reach" who experienced a specified minimum number of exposures (effective frequency)

All the above stem from the audience research tools and investment figures. So called "reach and frequency" systems typically generate all these figures.

Other tools, especially in print media are also occasionally used. These may include "time spent with" media vehicles, "page openings", attentiveness, etc.

Friday, August 21, 1998 #2009
I'm having a difficult time trying to find any material that will teach me how to use CPP when buying network and spot radio. My contacts in the advertsing field tell me that they learned how to use this formula through experience. I know the formula for CPP. However, is there any resource that will show me how to implement CPP when buying network and spot radio? Something that will show me some shortcuts or maybe some examples? Thanks again for your help.

The Media Guru Answers(Friday, August 21, 1998 ):
Once you know how to calculate CPP, its uses are pretty straightforward.
  • CPP is an efficiency indicator. Media proposals you are considering can be ranked from lowest CPP to highest if efficency is a goal
  • CPP can be a goal you give to sales people, e.g. "I'm buying a $100 Women 18-49 CPP, what avails do you have at that pricing?"
  • CPP can be weighted with other factors like rating size or cume
  • CPP can be used to caluculate cpm when the universe is known: CPP divided by 1% of the universe expressed in thousands yields cpm
    (this is only valid when rating and audience in thousands come from the same geography as they do in Network. In spot, where you may use a metro rating but TSA thousands , the formula is imprecise at best)
  • CPP can be used as a bottom line number to compare possible schedules you are putting together

Remember - never average CPPs themselves; total the costs and total the ratings of schedules and calculate the bottom line CPP from the totals.

Friday, July 03, 1998 #1933

The Media Guru Answers(Friday, July 03, 1998 ):
The Guru has discussed this issue many times. If you go back to the Guru Page and select Guru Archives and do an advanced search for this coding:

(web | internet | online)&(price | "cost per thousand" | pricing | cpm),

you will find 25 Guru replies on your topic.

Monday, May 11, 1998 #1588
Is this any accepted measurement standard in place to effectively price web-page advertising? Also, has any service been able to obtain more direct response information, re:web-site hyperlinks, other than just counting "hits"?

The Media Guru Answers(Monday, May 11, 1998 ):
Web (banner) advertising is typically priced in one of 4 ways:
  • cpm- (cost per thousand ad exposures)
  • Flat fee ( usually calculated, by the seller, and compared, by the buyer, on an exposure basis)
  • Cost per click ( based on the number of times the banner gets clicked by a visitor to the site where it is displayed)
    This is not a very reasonable method, since the responsibility for making the copy attractive enough to stimulate clicks and fresh enough to keep stimulating clicks properly belongs with the advertiser, not the medium
  • Transactional ( where the payments to the site are based on the visitor's action when arriving at the advertiser's site; including making a purchase, requesting information, or navigating within the advertiser's site)

"Nobody" really counts "hits" anymore. Page exposures of the site and exposures of ads are the coin of the realm.

The latter two models above are direct response measures.

Tuesday, May 13, 1997 #1345
Since "PRICING WEB SITE ADVERTISING" was first published (it's not dated but I'm guessing '96?) have there been any 'advances' in the methodology for pricing web advertising beyond either the ModemMedia model or the alternatives suggested? I am not an advertising professional (and they said us geeks use obscure achronyms?), and I am also looking for a concise FAQ type document that might explain the formulae and jargon (cpm, Frequency, Impressions in your excellent on-line dictionary and Depth which isn't) within the context of web advertising. Are there and other specific media terms (new or old) that are pertinent in a web advertising context (I got page view and hits)? Thank you.

The Media Guru Answers(Wednesday, May 14, 1997 ):
The AMIC article was wriiten in the latter part of 1995, not long after the appearance of the Internet World May 1995 article which it discusses.

By the way, please be aware that AMIC has added a new area, called I-Trac, which discusses web terms and measurement and which includes a Web Glossary

In terms of newer thinking, consider the critqued article's central concepts:

1.Determine the ratio of hits between the web site's log and the number of file "hits" that make up the page carrying the ad. Divide logged hits by number of hits making up the page to calculate what we can call "page views." Then call page views "reach."

Since then, the software which interprets log files has developed so that it can distinguish pure "hits" from the more relevant page requests or "page views" . Hits today is taken to refer to any line in a log file, even errors. (Ad) Page requests is the analog to traditional media's "impressions".

2.Determine repeat viewing of that page and call that frequency.

We more commonly use "frequency" in terms of whole campaigns

3.Determine the success of viewings of that billboard ad in moving readers to the actual web site and call that "depth."

This measurement concept has come to be called "click-through" or ad click rate. Depth was a term only used as defined in this Internet World article.

Today pricing is generally based on cost per thousand (cpm) impressions. Rates seem to range from $15 cpm for the broadest, general audience sites' rotating banners, through $50 or so for search engines' keyword banners up to $100+ for "premium audience" on highly targeted business to business web sites. Another pricing model growing in popularity is "price per click," which charges for each vistor who clicks on a banner. The problem here is that the site hosting the banner must rely on the creative to generate viewr response -- it isn't all the effect of the web site itself. Therre is considerable literature today about how to influence clicks, as well as a growing body of research which argues for the awareness building effects of the banners, regardless of clicking response. Finally, simple revenue based models are the rising concept. In this, sites hosting banners are compensated with a portion of the transaction revenue generated by web surfers they send to retail type sites. An offshoot of this is a model for ad placement agency compensation based on the revenue generated by their placement of ads at recommended sites.

Monday, February 19, 1996 #1757
Television's (network, spot are cable) and radio's (network and spot) advertising costs are typically measured in CPP's (cost per rating points). On the other hand, Newspapers' and magazine's advertising costs are measured in cpm's (cost per thousand). It seems the Internet is moving towards the cpm model and I have no idea how "out of home" or Direct Mail are measured. Apples to apples, based on cpm, how do these mediums compare on cost? -- how about ROI?

The Media Guru Answers(Thursday, February 22, 1996 ):
First, understand that CPP and cpm are just cost indices rather than "measures." cpm (cost per thousand audience impressions) may be converted easily to CPP (cost per percentage point of population universe):

CPP = cpm x universe in thousands x .01


cpm = CPP / (.01 x universe in thousands)

cpm is simpler to deal with because we only need to know the audience exposed, a figure just beginning to be reported on the internet. CPP requires us to know a "universe," the number of people in the whole category under discussion. For the internet, or more specifically the WWW, where ads are usually found, universe is a hotly debated question. Is it the number of people with computers and modems or the number of people with the theoretical possibility to browse the web (an ISP and browser software) or the number of people who actually ever do use the Web? Even if we pick one of these, there are radically varying research estimates of the size of these possible universes.

If we decide to just use the total population as a universe for internet measurement, the ratings are agonizingly small, and we are still working toward how to define the rating. In print, no matter how often a reader picks up the same issue of a magazine, he or she only counts once in that issues impressions or rating. But website accesses are usually counting multiple weekly visits without the ability to distinguish repeats of the same viewer. There is not yet any common ground in pricing to talk of averages. There may be over 100,000 commercial sites, more than all the tv, radio and print vehicles put together.

The comparison you suggest between all media cpms also changes as we define which demographic to consider. TV has established averages to consider and companies like Spot Quotations and Data publish these cpm/cpp.

Print may vary from $5 to over $200 cpm depending on selectivity of audience and total circulation.

ROI can't be discussed without knowing the goals and depends on ad content, other marketing efforts and how revenue is measured. Web site development and web ads may be meant to sell product, build image or just bring viewers to sites. Web advertising needs to be evaluated against very goal specific potential and possibility.