VTR (view through rate) is an estimation of the number of impressions viewed during the advertising campaign

Advertising campaign

An advertising campaign is a series of advertisement messages that share a single idea and theme which make up an integrated marketing communication...

, (as well as estimation of realized advertising contacts).

It gives the subjective attraction of the advertising medium, which consists of medium and advertisement messages. Moreover VTR has direct relations with indexes:

CTR reflects the subjective informativeness of the advertisement message (high - click, low - familiarization).

CTI reflects the subjective consumer's interest in the advertising message.

CTR(v) (contact through rate based on a view) has objective nature and lets estimate the effectiveness of capture of the consumer attention as a whole (three in one).

Old scheme and problematic

It is well known that the Internet

Internet

The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...

 is an interactive area. Search engines, social networking sites and forums list Banner advertisements, clicking which, generate revenue for the site hosting the ads. Measuring the frequency of views/clicks helps determine whether the advertisement reaches the audience or not. That process may be represented by the scheme:

(A1)

However not all banner ads shows (the more suitable word - loads) crown the advertising contact. As a matter of fact when an advertiser uses standard banner advertising he has some choice between 2 criteria (shows or clicks), he does not evaluate the amount of real happening advertising contacts because:

(A2)

or

(A3)

Evidently, in this case the advertiser has vast interest to be ruled with number of clicks. The opposite situation for a publisher, he is interested to sell banner shows. The compromise way is - to pay for the time of distribution banner ad (static), but in the same time this way isn’t optimal from the standpoint of media planning

Media planning

Media planning is generally the task of a media agency and entails finding the most appropriate media platforms for a client's brand or product...

.

The golden mean

Golden mean

Golden mean may refer to:*Doctrine of the Golden Mean , a chapter in Li Ji, one of the Four Books of Confucianism*Golden mean , the felicitous middle between the extremes of excess and deficiency...

 has been found when the index Click-Through-Rate (CTR) been invented. Although that index tries to find any answer question about advertising effectiveness

Effectiveness

Effectiveness is the capability of producing a desired result. When something is deemed effective, it means it has an intended or expected outcome, or produces a deep, vivid impression.-Etymology:...

 but it lets to escape the matter about amount of real happening contacts.

An ideal decision of the matter could be possibility to control perception of the advertising consumer, but it hasn't a current realization.

Newest scheme

SI-A-SI first offered and developed a new conception (as part of Video Field), which decides the question about contact counting. The base of conception is video advertising and control of views.

A) The Show. While visitor is browsing a site, Video Field plays preview of some video.

B) While video is played, the user additionally gets some messages. For example, do the cursor over Video Field for watching the video.

If user pays attention to Video Field (wants to watch a video) and he doesn't move a cursor away within 2 seconds, so this act is considered as The View.

C) After a click by Video Field the consumer is redirected to web page

Web page

A web page or webpage is a document or information resource that is suitable for the World Wide Web and can be accessed through a web browser and displayed on a monitor or mobile device. This information is usually in HTML or XHTML format, and may provide navigation to other web pages via hypertext...

 of advertiser. It is registered as the click.

The logic of a contact with advertisement may be explained in that way:

(B1)

As a result of the test of 10 million shows (impressions), it has relations:

(B2)

or

(B3)

or so

(B4)

Thanks to Video Field conception, it is possible to measure as well abstract index of efficiency - CTR as others four advanced indexes. There are three subjective indexes - VTR, CTR, CTI for each aspect of interaction with advertisement consumer and one resumptive (integrated and objective) index - CTR(v).

1. Attracting the attention of consumer

VTR (view through rate) When cursor is placed over the Video Field (for fixed amount of time), it has been considered as released advertising contact.

(C1)

2. The informativeness of some video advertising (high - click, low - familiarization).

CTR - familiarization or motive for the click.

(C2)

3. The interest of a consumer to get more information

CTI (click through interest)

(C3)

4. The efficiency of advertisement

CTR (v) (clicks + views through rate)

(C4)

According to formulas B2, B3 and C1, C4, the correct ratio of the type of CTR (v) may be presented in that way:

(C5)

it means

(C6)

and

(C7)

These formulas (C5, C6 and C7) demonstrate some correlation between the advertising appeal and informativeness and consumer's interest to any advertisement.

(C8)

The last formula (C8) demonstrates the limit value of CTR if CTR(v) or VTR, when CTI has maximal value.

Also formula C8 demonstrates that consumer's interest has more effected to clicks than attractiveness of advertisement .

A table of dynamic of indexes VTR,CTR,CTI,CTR(v)

How you can see from the table:

VTR – more exact index, which reflects subjective attraction of the advertising medium (advertising medium = medium + advertisement messages).

CTR – shows subjective informativeness of the advertising message (high - click, low - familiarization).

CTI – shows subjective consumer's interest to the advertising message.

CTR(v) – has objective nature, lets estimate the effectiveness of capture of the consumer attention as a whole (three in one).

Concordance of levels

The concordance of levels of interaction and objective integrated index of efficiency of advertising message - CTR(v).



The effectiveness of advertising message depends on the attraction of advertising medium, informativity of advertising message and consumer's interest.

The objective integrated index CTR(v) enables us to estimate levels of advertisement interaction.

See also

• CPM
  Cost Per Mille
  Cost per mille , also called cost ‰ and cost per thousand , is a commonly used measurement in advertising. Radio, television, newspaper, magazine, out-of-home advertising, and online advertising can be purchased on the basis of what it costs to show the ad to one thousand viewers...
  
   - Cost Per Mille
• eCPM - Effective Cost Per Mille
• CPT - Cost per thousand
• CPI
  Cost Per Impression
  Cost per impression, often abbreviated to CPI or CPM for Cost per thousand impressions, is a phrase often used in online advertising and marketing related to web traffic. It is used for measuring the worth and cost of a specific e-marketing campaign. This technique is applied with web banners,...
  
   - Cost Per Impression
• PPC
  Pay per click
  Pay per click is an Internet advertising model used to direct traffic to websites, where advertisers pay the publisher when the ad is clicked. With search engines, advertisers typically bid on keyword phrases relevant to their target market...
  
   - Pay per click
• CPA
  Cost Per Action
  Cost Per Action or CPA is an online advertising pricing model, where the advertiser pays for each specified action linked to the advertisement....
  
   - Cost Per Action
• ad serving
  Ad serving
  Ad serving describes the technology and service that places advertisements on web sites. Ad serving technology companies provide software to web sites and advertisers to serve ads, count them, choose the ads that will make the website or advertiser most money, and monitor progress of different...
  
  
• Click fraud
  Click fraud
  Click fraud is a type of Internet crime that occurs in pay per click online advertising when a person, automated script or computer program imitates a legitimate user of a web browser clicking on an ad, for the purpose of generating a charge per click without having actual interest in the target...
  
  
• Cost Per Click

External links

1. DoubleClick Q1 2004 Ad Serving Trends
2. Are You Leaving ROI on the Table?
3. Adblock Plus