BS Thesis In Business Administration Methods of Product - Skemman

The real number of impressions can only be guessed, based on, for example, data
such as banner placement. We assume that in this case, the difference between a
download and impressions is about 30%. On the other hand, suppose there is an
additional 10% of unaccounted for impressions. Consequently, the final difference
would be 20%. In other words, banner’s 150,000 downloads actually produced 120,000
hits (as exposure). Thus, the cost of a thousand real impressions, CPE (cost per
exposure) is:
CPM = 30,000 x 4/120 000 = $ 1;
CPE = $ 4 + $ 1 = $ 5.
Based on the web publisher‘s data, we know that in average the user visited the
server four times over a week period (150,000 visits to the homepage, 37,000 unique
users). Consequently, the user saw the advertisement in average four times. We find
that ad frequency = 4, ad reach = 120,000/4 = 30,000 (number of unique users who
were shown the advertisement).
It turns out that the cost of contact with a thousand unique users, CPUU (cost per
unique user) was:
CPUU = (ad impressions – ad reach) x 4 + CPM = $ 20.
CPUU is as shown by a comparative analysis, 5% lower than the average for all
advertising campaigns at all six social network sites (data obtained from the publisher).
In average the user saw the ad four times. Let us assume that 65% of those unique
users who saw the ad will remember it. That is, we get 19,500 users who are aware of
the online store Ochkoff.net. The cost of each thousand aware users, CPAW (cost per
aware user) is:
CPAW = (150,000 – 19,500) x $ 4 + CPM = $ 31 (data calculated approximately).
The publisher reported about 1,300 clicks on the banner, banner‘s CTR was 0.87%,
thus, we find that the cost per thousand clicks, CPC (cost per click) is:
CPC = (150,000 – 1,300) x CPM + CPM = $ 461.
For various reasons, not all that clicked on the banner made it to the site Ochkoff.net
and became its visitors. The loss amounted to 16%, as the server’s logs recorded only
1,100 visits (sessions on the site), where the referrer was the publisher’s site. Cost per
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