Enter the number of users that were reached (i.e. impressions) the CPM by vertical, and the conversion rate of the media into the calculator to determine the earned media value.
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Earned Media Value Formula
The following formula is used to calculated an earned media value (EMV).
EMV = UR * CPM * CR/100
- Where EMV is the earned media value
- UR is the number of users reached
- CPM is the cost per 1000 impressions of the vertical ($)
- CR is the conversion rate of the impressions (%)
To calculate earned media value, multiply the number of people reached by the CPM, then multiply again by the conversion rate.
Earned Media Value Definition
An earned media value is defined as a measure of the engagement with social media content of a specific company or brand that was generated by a third party, which is most often an advertising agency.
The true formula for earned media value has not been agreed upon by experts in the field, but the formula above is one such way.
How to calculate earned media value?
First, determine the CPM of the vertical being worked in. For this example, we will say we are looking at a Facebook ad campaign in the health and beauty niche.
For this niche, the average CPM is $2.45. This is the cost to reach 1000 impressions or views on the advertisement.
Next, determine the number of users that were reached with the campaign itself. After running the ad for a week, a total of 20,000 unique viewers were reached.
Next, determine the engagement rate of the impressions. In this case, of the 20,000 viewers, only 2% engaged with the campaign in some way, whether it be a share/like/comment, etc.
Finally, calculate the earned media value using the formula above:
EMV = #UR * CPM * CR/100
= 980 EMV.
How this result can be used to analyze the success of the campaign is up to the company, but at baseline, it can be used to compare with other campaigns.