In media terms, the To-Net Factor is a measure of how much ad exposure you're getting for your spend. We can also call it as media reach efficiency.
It functions as the inverse of CPM (Cost per Thousand Impressions) - so the lower the To-Net Factor, the more impressions you get for the same media cost.
Media impressions = Media cost ÷ Cost per impression (To-Net Factor)
Example:
If you spend $10,000 on media:
- With a To-Net Factor of 0.002 (CPM ~$2), you get 5 million impressions
- With a To-Net Factor of 0.0042 (CPM ~$4.20), you get ~2.4 million impressions
Why This Matters in Simulation:
If the simulation engine forecasts a higher To-Net Factor than what actually occurred:
- It assumes fewer impressions were delivered.
- This leads to lower expected impact, even if media spend matches historical spend.
This is one reason why simulation outcomes may differ from Business Insights results, especially when the to-net factor is not provided directly and must be forecasted by the system.
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