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The table above shows a portion of an advertising campaign ranked by the number of sample impressions for adults 18-49. It also shows the number of valued impressions, and the value efficiency for each of the ads based on the same assigned values described in
Audience Valuation
.
The most efficient ads are not necessarily those with the greatest number of impressions. The efficiency for the ad in row 6 at 0.72, for example, is almost twice the efficiency of the ad in the row above it, which had an efficiency of only 0.39.
The audience value efficiency is a convenient way to measure the effectiveness of the ads in an advertising campaign when unit costs are not readily available to compute
CPMs of value
.
As the table indicates, the audience value efficiency of an ad can be either less than or greater than one. For example, if we buy ads based on adults 18-49, but are targeting only upscale adults of the same age, then the value efficiency will always be less than one. The number of impressions for upscale people will never be greater than the total number of impressions for all people in the age group.
The value efficiency number could be greater than one if we buy ads based on a narrow demographic group, but are targeting people in either a broader group or entirely different group. Again, suppose we buy on adults 18-49 but are seeking an older audience for a particular product. If a program skews old then it might be possible to have more impressions in our older group than are in the 18-49 group, in which case the efficiency will be greater than one.
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