What We Charge Advertisers, What We Pay Account Holders, & Why

Advertisers don’t pay a fixed amount for each verified view. The amount depends on how much detail is listed on your Profile Details, and the sort of impression they want or need to make (larger payouts make much stronger impressions). Any detail can be very helpful for getting better offers from advertisers. If your profile says you have a dog, that makes you a match for certain companies wanting to advertise to you. If your zip code is in your profile, that matches you with offers specific to your area. This is all information that advertising companies all over the world track, and it’s likely a lot of information about you is on file with at least a few of them right now – usually in a form that can’t be connected to your name (“non-personally identifiable information”), but in a way that is still useful for advertisers because they can identify what categories you are considered to be in without tracking your identity itself. We have a shared mission to generate cash flow for charities and people, and that’s the reason this profile exists with our company (the same cannot be said of the profiles other companies typically have on you).

While we discourage using our minimum rate more than just once as an introduction (and may deny an ad proposal if it’s only for the minimum rate), we have one set in a way that values viewer’s time at no less than $10 for any collective hour spent on verified ads. $0.21 per Verified View is the minimum price we offer for a video ad, because you need 15 seconds to watch the video and 15 seconds to answer the confirmation question(s). For a visual only (non-video) ad needing ten seconds of attention for the image and verification question, the minimum price per ad is $0.07. $0.21 per 30 seconds is $25.20 per hour, and you receive 40% of advertising payments. In this case, that would be a minimum of $10.08 per hour for seeing ads at a time when you otherwise would have been doing nothing, or only something boring (waiting in line, waiting for another online ad to be over, etc). That’s the very least we would want to see someone receiving, if they didn’t give us much information on their profile for connecting them with better offers. Sometimes just a couple of pieces of information on your profile can connect you with much better offers than one piece of information. The more detail, the better.

This section in italics is also on the page entitled “How We Operate And Provide Value For Advertisers”, but it helps explain why we pay different rates for different ads, so it’s here too in case you haven’t read this: We use our own service to promote and sell, and have a basic calculation we use in doing so. We just need two pieces of info: the profit per conversion (conversion meaning a sale or use of a service, it may not necessarily be a sale – the view is converting into a sale, sign up, or other desired action), and predicted success rate (depending on the product this may come from a simple or very complex calculation: it’s just how many people out of one hundred viewers are expected to convert from a view to a desired action, sign up, or sale, as a percentage). Predicted success rate will of course vary based on how much data we have about viewers (from their profile details), how popular the product is with that audience, how well the product or service has sold/converted in past campaigns, etc. For example, for a high end home improvement and savings service for which we earn $350 per conversion has an expected success rate of 1% among homeowners within certain zip codes (we are estimating this at a low point to account for other factors that could disqualify them from being able to use this service, and to help prevent overspending in the event that an unforeseen factor causes an abnormally low success rate for any given campaign). In sending verified ads to viewers who we know own homes and live within a serviceable zip code, we calculate that our break even point using Hiiobi is as follows:

PPC * PSR = Break Even Price Per Ad
 
above answer / 2 = price per ad needed for projected two fold return on ad spend
 
In this example, that is:
 
$350 * 0.01 = $3.50 per ad to break even. This means at $1.75 for a 30 second ad (40% going to the accountholder, $0.70, effectively $84 per hour), we have an expected two fold return on ad spend even if the conversion rate is only 1%, while avoiding fraud, invisibility, and psychological resistance. We have a shared mission with our accountholders. [example – 1,000 ads at $1.75 is $1,750, 1% or ten in one thousand viewers convert at $350 per conversion, we earn $3,500 after spending $1,750]

To provide one simple pricing comparison – a $35 CPM (Cost Per Mille) is a price per one thousand “impressions” that you might find on a rate card showing prices for different types of advertising on a video streaming service. That’s really a starting point for negotiation, so let’s say you are able to bring that down to $25 (for a 30 second ad). If half of those impressions are fraudulent, one fourth are not happening because the device is muted or no one is in the room,  and one eighth are not useful or positive impressions because of the psychological issue of resistance, this $25 is getting you one hundred twenty five useful impressions, not one thousand.

To get back to that number of impressions, you as an advertiser need eight times more service. 125 * 8 = 1000 Impressions.

25 * 8 = $200 Adjusted CPM, assuming the issues of Fraud, Invisibility, and Resistance are not causing more than an impression loss of 1/2, 1/4, and 1/8 (in any order that fits your opinion about those loss ratios – personally I think resistance is the most powerful detractor, but it depends on the advertising type, so I prefer to use 1/2, 1/4, and 1/8 (7/8 total) as, roughly, the average loss from all three factors across any advertising type. The reality is that in many cases, more than 1/2 of the views (or clicks, etc) are fraudulent, more than 1/4 of the ads are not visible, and much more than 1/8 of the views represent negative or low quality impressions from viewers who were deeply annoyed by the ad or ignored it very actively because it’s an ad.

Buying eight times more service to get to the same impression count at a similar price still doesn’t eliminate the psychological resistance issue. There is an incalculable amount of value in “showing rather than telling” when it comes to creating unity or at least highlighting similarities between an audience and a brand. Working together and accomplishing the goal of moving cash flow to great people and charities gets people thinking about brands and their message in a way that just can’t happen with a traditional advertisement. The impact of the message increases as the payment per verified view increases, and we use that to raise as much as possible for people and charities.