So since television and digital media outlets are the two most prominent
media outlets of where companies are spending their money.
Let's look at a couple of indicators of how companies transact
in these different media outlets.
First of all, let's start with television.
The unit of measurement for television and for
other massive media outlets typically is the gross rating point.
A gross rating point combines two different concepts.
One is what percentage of the target audience is actually reached?
And also, what is the frequency of the impacts
during this specific campaign, right?
So here you have the formula, 100 times the percentage reach
times the number of average frequency of impacts, right?
So, for example if 50% of the audience has been reached with
an average of three impacts during a particular campaign,
that campaign would have gotten you 150 GRP's, clear?
The next category of spend is search engine marketing,
where the major unit is cost per click.
The cost per click that you will pay in any search engine
depends amongst other things on the website quality score.
What is a Quality Score?
The Quality Score is a number that will be assigned by the search
engine to your website or to your mobile site.
It will be affected by several things.
First of all, how popular is your site?
In essence, that will impact the click-through rate, which is the number of
clients divided by the overall number of impressions that you have received.
It would also be dependent upon the quality of your landing page,
your page architecture, and also what other sites referred or
had linked to your particular site.
And finally, it will be highly dependent on the level of relevance
of the different keywords that consumers are looking for and the kind of content or
how close the content that you're providing is to those specific keywords.
The next category of spending is Display.
Display is measure as a cost per thousand impressions.
But there are also other measures.
Some people are able to transact for example on cost per conversion, or
sales, cost per leads or cost per achieving some other kind of,
for example, action such as filling up a form or
signing up to receive a newsletter or an email and so forth and so on.
These are some of the important metrics that you ought to keep in mind since they
represent more than 80% of where the money is spent on media these days.
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