As is the name of the thread, can someone just give me a real simple, down to earth definition of what media buying is?
My understanding is that it's buying display inventory in bulk for a set price, (eg Buying 1 million impressions for banner size X and banner size Y on Bobs fishing website for $10,000), is this anywhere near right?
Media Buying is very general and wide topic.
basically buying media means that you are buying traffic based on CPM / CPC it can be display traffic and it can be pop traffic and it can also be SEO traffic.
at the end you will need to calculate your spend vs revenue and adjust your campaigns accordingly.
so example for media buying on CPM (CPM = Cost Per Mil - 1000 impressions)
CPM = $7
Conversion = $5.00
you got 30K impressions 3000 clicks and 100 conversions
Cost = 30,000 / 1000 * $7 = $210
Revenue = 100 * $5.00 = $500
Profit = Revenue - Cost = $290
the risk here that you can spend a lot of money and not convert the users for many reasons so adjustment and optimization is crucial for the success of your campaigns.
here is an example to an excel that helped me a lot when i use to do a lot of media buying
Attachment 7644
The example is for a CPM campaign, if you are buying media based on clicks than the cost will be the amount of clicks multiply by the cost of each Click.
Hello,
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