This project provides a tool to compare the cost-effectiveness of two digital advertising platforms: Blaze and Addressable. While both platforms offer audience targeting and segmentation, Addressable uniquely features a machine learning algorithm for conversion optimization. However, Addressable's advanced capabilities come with a higher cost. This tool aims to analyze the effectiveness threshold at which Addressable's conversion optimization justifies its higher price, aiding in the decision-making process for selecting an ad platform.
The HTML-based calculator embedded with JavaScript performs the following functions:
- True Cost Per Click (CPC) Calculation: Computes the True CPC for Blaze and Addressable based on user inputs.
- Effectiveness Ratio Calculation: Compares the cost-effectiveness of Addressable against Blaze.
- Required Optimization for Addressable: Determines the necessary level of audience optimization for Addressable to achieve cost-effectiveness equivalent to or better than Blaze at various budget levels ($3,000, $10,000, and $100,000).
- Input Parameters: Enter subscription fees, ad spend, ad spend fee percentage, baseline CPC, and audience optimization percentage for Addressable.
- Calculate Results: Click "Calculate" to see the True CPC for both platforms, the Effectiveness Ratio, and Addressable's required optimization levels for different budgets.
- Analyze and Experiment: Use the results to understand Addressable's cost-effectiveness. Adjust inputs to simulate different scenarios and further analyze the trade-offs.