Demo Normalization
Demo normalization is a crucial technique that transforms the ratings, impressions, Cost Per Point (CPP), and Cost Per Mille (CPM) values of your booked demos into a common metric called the 'Normalized Demo'. This process is essential because orders may be booked for various demographics, making it improper to directly aggregate data across dissimilar demographics. By converting data into a common metric, you can compare and aggregate data across different orders seamlessly.
Example scenario
Let's consider an order with a booked demo of A25-54, a booked order value of $30,000, 1 million booked impressions, and 0.8 million posted impressions.
To begin the normalization process, we need to select a normalized demographic for our analysis. Commonly used demographics for booking orders include Adults aged 25-54, Adults aged 18-49, and Adults aged 18 plus. In this example, we will choose Adults aged 18 plus as our normalized demographic with posted impressions of 0.5 million and booked order value of 20,00 dollars.
To calculate the normalized impressions value for the A18+ demo for past spots, we can use the booked and posted values from the A25-54 demo in the example above, applying the following formula:
Normalized Impressions (Normalized Demo) = (Impressions Booked in the booked demo) * (Posted Impressions of the normalized demo) / (Posted Impressions of the booked demo)
By applying this formula to our example, we find that the order would have normalized impressions of 0.625 million impressions in the Adults aged 18 plus demographic.
Similarly, for calculating normalized impressions value of A18+ demo for future spots, we can use the formula:
Normalized Impressions Booked = (Impressions Booked in the booked demo) * (ANNA estimated (Projected) Impressions of the normalized demo) / (ANNA estimated (Projected) Impressions of the booked demo)
- In order to compute normalized ratings, substitute Booked impressions in the numerator with Booked Ratings.
- For past spots, certain normalized metric values can be directly derived from posted data, as they reflect actual performance.
To calculate the Normalized CPM, use the formula:
Normalized CPM = Booked rate / Normalized impressions booked in thousands
Applying the above formula, we get the CPM for normalized data as $32.
Normalized values are accurate and closer to actual figures, as they are calculated using posted data and ANNA estimates.
In order to compute CPP, substitute the Normalized impressions booked in thousands in the denominator with the Normalized Booked Ratings.
Demo Normalization filter
On EOS, you can view normalized data on the Order Listing, Offers Awaiting Approval and Spot details pages by toggling the Demo Normalization filter.
- Selecting 'Yes' will display data normalized to the selected demographic. By default, EOS uses the A25-54 demographic for normalization. Additionally, A18+ or A18-49 demographics can be chosen as the normalized demo. All booked and posted data is normalized into the chosen demo for easy comparison.
- Selecting 'No' will display un-normalized data.