# Using computational method to evaluate the effect of network advertisement

Source: Internet
Author: User
Advertising | algorithm | Network author: noveli

Measurable can be said to be one of the biggest advantages of network advertising, so there are some standards for network advertising, including based on CPM, CPA and so on. With the gradual increase of network advertising, some netizens will not appear blindly click ads Phenomenon. Compared with previous statistics, the average click rate dropped from 30% to below 0.5%. If the existing network advertisements are still evaluated in accordance with the previous methods, it is obvious that they cannot fully reflect their true effects. The effect of online advertising is related to the direct interests of advertisers, so they always want to put ads can receive the desired effect, then how can we objectively measure its effect? This article introduces you to a method of computing the overall value of network advertising. Description

Cpa:cost per action (cost of each operation)
Advertisers pay advertising sites by the number of sales pens after they have been sold.

Cpm:cost per thousand impressions (Thousand Impressions cost)
Online advertising produces the cost of every 1000 impressions (shown).

Here is an example to illustrate:

An enterprise has chosen the network advertisement in the propaganda aspect, and has implemented three kinds of plans at the same time in the meantime, the launch effect each has the different, basic situation is as follows:

The program launches the website to launch the time the advertisement clicks the number product sale quantity
Project a website BANNER one months 2000 260
Programme two B website BANNER one months 4000 170
Programme three C website BANNER one months 3000 250

The enterprise hopes to carry on the analysis, obtains the network advertisement overall effect best one kind of plan, in order to make the corresponding adjustment in the strategy aspect. As a result, some analysts come up with two kinds of answers:

1, the most popular ads are two, it can attract more attention, of course, the effect of this scheme is the best;

2, the first scheme effect is the best, because the highest volume of product sales, the real network advertising effect to bring profits.

Usually a lot of people are based on the data of the table directly draw conclusions, so the evaluation of network advertising effect is more one-sided, and lack of accuracy, objectivity. Measuring the overall effect of online advertising must involve many aspects, such as how much attention can be given to advertising, how much attention could be turned into profit, brand effect, and so on. For the above example, we can make a scientific weighted calculation method to analyze its effect.

This calculation method is very simple, first of all, you can give the product sales and access to the click of the weight, weight of the simple algorithm: (260+170+250)/(2000+4000+3000) ≈0.07.

Description

The weighting is the key to the weighting method, and its precision directly affects the accuracy of the overall value. The above weight value is only as this example, how to calculate the weight value more accurately, then need a lot of data for statistical analysis, here is not described.

From this, an average of 100 clicks can be formed 7 times the actual purchase, then you can set the weight of sales to 1.00, each click of the weight of 0.07. Then the sales volume and the number of clicks multiplied by their corresponding weights, and finally add two numbers, so that the enterprise through the launch of online advertising can get the total value.

Scheme I, total value: 260x1.00 + 2000x0.07 = 400;
Programme two, total value: 170x1.00 + 4000x0.07 = 450;
Scheme three, the total value is: 250x1.00 + 3000x0.07 = 460;

The calculation results show that the three is the most valuable to the enterprise. While the first option can generate the most actual sales, the second can bring the most attention, but in the long run the third option is more valuable. However, the effect of online advertising is not only reflected in attention and product sales, but also to build brand image or attract potential customers is equally important. When the Netizen sees the enterprise's banner advertisement but does not click, or has clicks but does not buy the enterprise's product, does not mean this advertisement does not have the effect. Because, the advertisement makes their impression to the Enterprise brand or form a part of potential customers, all these factors rely on surface data is difficult to estimate. Therefore, it is necessary to carry out some scientific calculation and analysis when measuring the effect of network advertising.

It is worth noting that the weighted calculation method introduced in this paper is not suitable for the evaluation budget before the network advertisement is put into operation. Because it is mainly aimed at advertising, in the grasp of some basic statistics on the basis of the overall value generated by the network advertising to do a calculation with the basic formula. Although the results of the formula calculation are somewhat objective, they can only be used as a reference for the overall assessment. Do not therefore completely affirm or negate the decision of network advertisement, after all, measure the effect of network advertisement or need according to a lot of actual situation, consider subjective and objective factors in many aspects.

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