# Calculations and Considerations. Cost per Thousand The cost per one thousand individuals or homes delivered by a medium or media schedule. It is used.

## Presentation on theme: "Calculations and Considerations. Cost per Thousand The cost per one thousand individuals or homes delivered by a medium or media schedule. It is used."— Presentation transcript:

Calculations and Considerations

Cost per Thousand The cost per one thousand individuals or homes delivered by a medium or media schedule. It is used in comparing or evaluating the cost efficiency of media vehicles. It shows the relative cost of one medium to another, or media schedule to another. It is also stated as cost per mille (CPM). CPT= (cost/audience delivery)*1.000

Example 1 for CPT Cost of a full page color ad in Elele: 7.500USD Net sales: 20.000 CPT= cost of an ad* 1.000 net sales CPT= 7.500USD * 1.000 = 375USD 20.000

Example 2 for CPT Cost of a 4cl*25cm color ad in Hürriyet: 4.000USD Net sales : 400.000 CPT= cost of an ad* 1,000 net sales CPT= 4,000USD * 1,000 = 10USD 400,000

Example 3 for CPT We have a 4clm.*25cm. Uludağ Frutti print ad. The budgets for each newspaper are as follows: NewspaperAd SizeClm.*Cm Total Budget Net sales Hürriyet100clm*cm.40USD 4.000USD445.000 Posta100clm*cm45USD 4.500USD470.000 Zaman100clm*cm50USD 5.000USD860.000 Let’s find the CPT (cost per thousand) for each newspaper.

Example 4 for CPT Our print ad for BEKO is 9clm*26,5cm. The price for one clm*cm in Sabah is 60USD. Average net sales for Sabah is 350.000. What is the CPT for Sabah?

Example 5 for CPT We will buy 10.000.000 impressions for a standart banner in one of the web pages for 5.000TL. What is our CPM?

Cost per rating point per second The figure that indicates the cost of advertising exposure to one percentage of the target group, audience, or population. The cost of purchasing one rating point in one second. CPP/sec.= cost of a commercial/rating/average film second

CPP/SEC Cpp/sec. vary by market, by target audience, by tv station within market, by the type of programming being purchased, by season.

Why do we use CPP/SEC? Every program has different rating and price. Therefore we need to base our calculations on an average unit cost which is called as cpp/sec. We can compare unit costs of different programs, or tv stations.

Example 1 for CPP/SEC Cost of a 30 sec. commercial in Medcezir is 5.000 USD Rating for Medcezir (20+ Females) = 5,80% Cpp/sec= 5.000USD/5,80/30sec = 28,7USD

Example 2 for CPP/SEC We have one commercial for 20 sec. and we want to understand if it is cost effective to enter the spot in Umutsuz Ev Kadınları. Total budget for one spot is 4.000USD, and the rating (20+ ABC1) is 10,9. Let’s find out cpp/sec. for Umutsuz Ev Kadınları. CPP/sec.= cost of a commercial/rating/average film second CPP/sec= 4.000USD/10,9/20= 18,3USD

Example 3 for CPP/SEC CPP/sec.= total budget of a campaign/GRP/average film second We have 100.000USD We plan to get 700 GRP (HW) for our campaign We have 30 sec. commercial CPP/sec.= 100.000/700/30=4,76USD

Average Film Second The ratio of total advertising film seconds to total number of spots. Average film second=Total advertising seconds/total number of spots e.g: Assume that we have advertised 1.500 seconds and 150 spots. Average film second=1,500/150=10 seconds

Example 4 for CPP/SEC Total advertising seconds for Dove is 3.000 seconds in November. The number of spots used in the campaign is 200. What is the cpp/sec. if the budget is 100.000USD and GRP is 500. Average film sec.=3.000/200=15 sec. Cpp/sec.=100.000/500/15=13.3USD

Average Film Second If we have more than one advertising film and if we know how much weight we are going to give to each film then: Average film second= Adv. Film 1 * first film’s weight% + Adv. Film 2 *second film’s weight% Let’s think that we have 2 commercials for Duru Soap for 15 and 30 sec. We are planning to use 15 sec. 60% and 30 sec. 40%. What is our average film second? Average film second= 15*60%+30*40%= 9+12= 21sec.

Example 5 for CPP/SEC We have 100,000USD. We plan to get 700 GRP for our campaign. We have two commercials for 30 sec. and 15 sec. We are planning to use 50% of 30 sec. and 50% of 15 sec. What’s our cpp/sec? CPP/sec.= total budget of a campaign/GRP/average film second Average film sec = 30*50%+15*50%=22,5 sec. CPP/sec.= 100,000/700/22,5= 6,34 USD

Example 6 for CPP/SEC Fanta has spent 300,000USD for 30 sec. advertising film to get 800GRP (12-19) in January. They have spent 250.000USD for 25 sec. advertising film to get 750 GRP (12-19) in February. What is the cpp/sec. for each month? What is the cpp/sec. for the campaign if they have used both of the advertising films equally?

Cost per Click Cost of buying one click in a web site Cost per click= advertising budget for a web site/click numbers

Example for Cost per Click Total advertising budget for an online campaign is 30.000TL and the total click numbers are 20.000. In order to find the cost per click of the campaign: Cost per click= 30.000TL/20.000 clicks=1,5TL

Click Through Rate (CTR%) The rate of click numbers to impressions in a digital media plan. It gives us the rate for how many impression numbers turn to click numbers. CTR= (total click numbers/total impression numbers)*100

Example for Click Through Rate (CTR%) Total click number in mynet women web page we are planning to get is 100.000 with 5.000.000 impressions for 5.000TL. What is the click through rate of our banner? CTR%= (100.000/5.000.000)*100=2%

Conversion Rate The rate of conversion numbers to click numbers. The rate of clicks which turn to targeted action Conversion rate= (total conversion numbers/total click numbers)*100

Example for Conversion Rate Total conversion that we get at Hürriyet’s main web page is 30.000 from 300.000 click numbers. What is the conversion rate of our banner? Conversion Rate= (30.000/300.000)*100= 10%

Index An index is a number that shows a relationship between two percentages or between two raw numbers. If the population segment is considered to be “average”, then an index number tells us how much it is above or below the “average”. An index number over 100 means that usage of the product is proportionately greater in that segment than one that is average or below average.

Example for Index Sanat ve Eğlence kategorisindeki ziyaret eden kişilerin eğilimi: İzlesene 170 index ile bu kişiler tarafından daha çok tercih ediliyor.

Example for Index Düzenli Ev Eşyası ile ilgili online araştırma yapan kişilerin site tercihleri

Download ppt "Calculations and Considerations. Cost per Thousand The cost per one thousand individuals or homes delivered by a medium or media schedule. It is used."

Similar presentations