Non-CPM Rate Types: Estimating Ad Serving Costs

If your line item uses the CPM rate type, Basis automatically calculates the ad serving costs once you enter an ad serving rate. If your line item uses any rate type other than CPC—like CPCV or CPA—you need to estimate the impressions needed to achieve your rate type goal. 

You can use this formula to find the estimated impressions:

• Estimated Impressions = Target Number / Benchmark Rate

The Target Number is the targeted total clicks, views, or actions you expect the line item to receive.

For example, if your rate type is CPC, then the Target Number is the total clicks you want to achieve. If your rate type is CPCV, the Target Number is the completed views.

The Benchmark Rate can be historical averages or industry benchmarks for similar campaigns using this line item’s rate type. For CPC, you would use the benchmark click-through rate. For CPCV, you would use the benchmark completion rate.  

Let’s calculate estimated impressions for this CPC line item. We need to find the estimated impressions so Basis can use that number to calculate the ad serving costs.

Divide the targeted clicks, 422, by the benchmark click through rate—let’s say it’s .25 percent:

• Estimated Impressions = 422 / .0025

• Estimated Impressions = 168,800

Your estimated impressions are 168,800. Enter this number in the Units column, and Basis calculates the ad serving costs for you.