Special Report on
Basic Mathematics for Internet Advertising
Basic Mathematics for Internet Advertising - Trends
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It is the study of television commercials prior to airing them, and is defined as research to determine an ad’s effectiveness based on consumers’ responses to the ad. It covers all media including print, TV, radio, Internet etc. Although also known as copy testing, pre-testing is considered the more accurate, modern name (Young, p.4) for the prediction of how effectively an ad will perform, based on the analysis of feedback gathered from the target audience. Each test will either qualify the ad as strong enough to meet company action standards for airing or identify opportunities to improve the performance of the ad through ...
I used to do consulting work in the past, and most of my clients had trouble understanding the mathematics behind Internet advertising models. I figured it could be useful to explain some of the basic formulas around. CPM stands for cost-per-mille. Mille is the latin word for thousand, so CPM means cost per thousand. In this case we are talking about thousands of impressions on a website (also called page views). This is one of the most used metrics on the web. Under this model you’ll have an advertiser who is willing to play a certain price for each lot of one thousand impressions ... Read More
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