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Old 06-06-2005, 05:54 PM   #1
nastyking
 
Join Date: Nov 2002
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Attn: Math Geeks (i need your help)

Previously, i used the eCPM (revenue per 1000 impressions) to determine the profitability of any campaign.

If your project gets 10k impressions for example and generates $ 300 in revenue it would mean a $ 30 eCPM

It becomes more complicated when you are comparing campaigns where the number of impressions differs a lot.

example:

campaign A: 100k impressions - $ 3000 => $ 30 eCPM
campaign B: 1k impressions - $ 40 => $ 40 eCPM

although campaign B has a higher eCPM, campaign A has a "more stable" eCPM because it has more impressions.

Any ideas how to put that in a mathematical formula?
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Old 06-06-2005, 06:11 PM   #2
2HousePlague
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simple -- make your compared value an index rather than a real result, so that you can apply a "stability" factor, as a form of weighting --


j-
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Old 06-06-2005, 06:14 PM   #3
BillPMB
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Just divide your gross revenue by unique clicks and change your metric to CPC (cost per click)
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Old 06-06-2005, 06:15 PM   #4
nastyking
 
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Quote:
Originally Posted by BillPMB
Just divide your gross revenue by unique clicks and change your metric to CPC (cost per click)
this doesn't help me. thanks though ..
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Old 06-06-2005, 06:16 PM   #5
nastyking
 
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Quote:
Originally Posted by 2HousePlague
simple -- make your compared value an index rather than a real result, so that you can apply a "stability" factor, as a form of weighting --


j-
thanks jack

could you be so nice and make a little example (maybe from my sample figures) so i can make sure i got your idea right
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Old 06-06-2005, 06:31 PM   #6
2HousePlague
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sure thing -- but, since "stability" is a rather subjective factor, you will have to decide what kind of weighting to apply to the (purely mathematical) eCPM results. it seems, from the manner in which you've posed the question that you equate "stability" with volume -- which is not un-sound, but not the entire picture, to be sure --

for simplicity's sake, let's assume both your campaigns ran in a 24-hour period -- i would create a table of values -- perhaps 0.1 to 1.0X -- and make this your "Stability Factor" -- the table would be based on the campaign's delivery rate -- for example, a delivery rate of <1,000 imp/24-hours = SF of 0.1 and a delivery rate of >100,000 imp/24-hours = SF of 1.0 -- again, this part is subjctive and you must decide how to apply the weighting -- in your example, this would reslt in an SF-Adjusted eCPM of $4 for the "unstable" campaing and $30 for the "stable" one -- if it were me, i would create a separate column for SF factor, so I could see the SF value separately -- this way I could tell at glance that the $40 eCPM has more to it than meets than the eye -- otherwise you wouldn't know that the "apparent" ecPM of the "unstable" campaign was so low because of the SF factor -- --



j-
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Last edited by 2HousePlague; 06-06-2005 at 06:33 PM..
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Old 06-06-2005, 06:50 PM   #7
Luc
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:2cents

you may also want to try e=mc^2, seeing that you have an e, an m, and a c in your formula.
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Old 06-06-2005, 06:56 PM   #8
2HousePlague
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Quote:
Originally Posted by Luc
you may also want to try e=mc^2, seeing that you have an e, an m, and a c in your formula.
That's an interesting suggestion -- I have actually been working on a "Theory of Everything" type formula, intended to quantify the full effects of the Adult Internet, by factoring both sociologicial and psychologcal effects vectors, via such "measurables" as productivity and GDP. For example, it would provide us with a more scientific argument to the defense of porn's basic right to exist than just "because it makes people happy" -



j-
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Old 06-06-2005, 06:59 PM   #9
Luc
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Quote:
Originally Posted by 2HousePlague
That's an interesting suggestion -- I have actually been working on a "Theory of Everything" type formula, intended to quantify the full effects of the Adult Internet, by factoring both sociologicial and psychologcal effects vectors, via such "measurables" as productivity and GDP. For example, it would provide us with a more scientific argument to the defense of porn's basic right to exist than just "because it makes people happy" -



j-

lol.

ring me up when you develop that theory and i'll invest in you heavily....
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