Ad Impact Multipliers

March 12, 2024

Ad Impact Multipliers capture the comprehensive effects of advertising campaigns for KDP sellers, accounting for both direct ad-driven sales and the indirect, long-term benefits that are pivotal for a complete evaluation of advertising ROI.

Why You Need Ad Impact Multipliers

Ad Impact Multipliers extend beyond immediate ad-attributed sales and KENP reads to encompass:

  • Extended Page Reads: Tracking KENP reads that continue after the standard 14-day attribution window.
  • Series Read-Through: Estimating the continuation rate of readers through a series following an initial ad-attributed interaction.
  • Cross-Series or Cross-Catalog Purchases: Measuring the effect when readers engaged with one book or series lead to the purchase or borrowing of other standalone titles or series.
  • Organic Sales Lift: Quantifying the rise in sales not directly ascribed to ads due to enhanced visibility and ranking.

These multipliers are crucial for KDP sellers to fully understand the effectiveness of their advertising strategies.

Types of Impact Multipliers

  • Order Impact Multiplier: Scales the number of orders to estimate the total impact of ads, resulting in Adjusted Orders and Adjusted Sales metrics.
  • KENP Impact Multiplier: Scales the KENP reads to estimate the total ad impact on reader engagement, resulting in Adjusted KENP reads and Adjusted Estimated Royalties metrics.

Ad Impact Multipliers are integral to all Blended Metrics and are a fundamental aspect of the Blended Profit calculation. Any metric incorporating Blended Profit, signified by the prefix ‘Blended’, utilizes these multipliers.

Learn more about Adjusted Metrics

Learn more about Blended Metrics

Calculators for Ad Impact Multipliers

To determine your specific multipliers, Merch Jar provides two tailored calculators:

  • Simplified Profit Margin and Ad Impact Calculator: Ideal for a quick assessment of your advertising's broader influence.
  • Series Read-Through Multiplier: Offers a deep dive into the sustained impact of ads across a book series.

These tools ensure that every facet of your ad's influence is captured, from the initial click to the long-term reader relationship.

Learn more about Calculated Ad Impact Multipliers

Applying Multipliers in Merch Jar

Incorporate your multipliers within Merch Jar to unlock the full potential of your advertising data:

To integrate your calculated multipliers into Merch Jar:

  1. Sign in to your Merch Jar account.
  2. Proceed to Ad Account Settings.
  3. Enter your Order Impact Multiplier and KENP Impact Multiplier.

This integration allows Merch Jar to refine your Blended Metrics, ensuring that they reflect the true profitability of your campaigns.

Metric Definitions and Formulas

Adjusted Orders

The total number of orders adjusted by the Order Impact Multiplier to reflect the true scale of advertising influence.

Adjusted Orders = Orders * Order Impact Multiplier

Adjusted Sales

The revenue from sales adjusted by the Order Impact Multiplier to provide an accurate depiction of ad-driven sales performance.

Adjusted Sales = Sales * Order Impact Multiplier

Adjusted Pages Read

The KENP reads adjusted by the KENP Impact Multiplier to accurately represent the depth of reader engagement driven by advertising.

Adjusted Pages Read = Page Reads * KENP Impact Multiplier

Adjusted Estimated Royalties

The estimated royalties from KENP reads adjusted by the KENP Impact Multiplier, reflecting the total earnings impacted by advertising.

Adjusted Estimated Royalties = Estimated Royalties * KENP Impact Multiplier

Blended Profit

The comprehensive profit from sales and KENP royalties after applying both profit margin and ad impact multipliers, indicating the actual profitability of advertising efforts.

Blended Profit = (Adjusted Sales * Profit Margin) + Adjusted Estimated Royalties

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