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Re: Generating income via ads

From: Jim Meskauskas <jimm_at_Mediasmithinc.com>
Date: Wed 17 Jan 2001 21:21:35 -0500

JIM CHANDLER <jimc_at_price.com> WROTE:
> Reach X Frequency = Impressions
>
> In internet terms, reach would be defined as the total
> number of unique visitors. Frequency would be how many
> times those uniques see an ad. Multiply those and you
> get the total views, or impressions.

Actually, reach x frequency equals GRPS/TRPs, not
impressions. In traditional media, impressions = TRPs
(GRPs) X Universe/100.

What reach on the web would be is more like how one
calculates it in print. There is still a lot of
imprecision, given the "fuzzy" nature of the web
universe and the fact that OTS (Opportunity to See) as
established by ARF (Advertising Research Foundation)
does not really take into consideration that vehicle
exposure on the Web does not result in a potentially
analogous ad exposure. Web reach could be calculated
thus:

(Target as composition of site) X (buy as % of total
available impressions) = site reach. To then make this
work in combination with other, offline media, you
would have to then figure what % that was of TOTAL
universe.

The way pricing should work, however, is as it does in
with other vehicles in other media: the more targeted,
the higher the CPM. "Reach" on the web, and, IMHO, the
rest of media, will be meaningless in the future.
Given the state of the current quest for accountability
brought to the advertising world by the Internet,
pricing may actually have to be based on "performance."
Big reach doesn't necessarily translate into bigger
bottom lines. Media will be but in a position to
demonstrate its effect on an advertiser's business.

[clink, clink]

My two cents,

Jim Meskauskas
Mediasmith
Chief Internet Strategist
Land (Main): 212-551-7995
Land (Direct): 212-551-7904
Air: 510-499-6972
Fax: 212-551-7981
e: jimm_at_mediasmithinc.com





Received on Wed Jan 17 2001 - 20:21:35 CST


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