Forum Discussion
Margin calculator for media budget
Hi, I need help formulating a calculator where the 'Fixed Margin' is separated out from the total budget. My calculation needs to add a buffer to the margin as the platform where this is inserted will reduce the nominal margin when you also include a flat cpm fee as it increases the total amount billed. For example, if margin was 20% of $10,000 then the remaining budget left should be $8,000. However, when you add a rate card on top and deliver x amount of media impressions, the effective margin as a percent of total cost is always going to be less than the nominal margin percentage.
Example:
- Total cost: $10,000
- Margin fee: 20%
- Flat CPM rate: $1.50
- Impressions: 2,000,000
then this would lead to this:
- Media Cost $5,600
- Margin Fee $1,400
- Flat CPM rate ($1.5) $3,000
- Total $10,000
Ideally, I would like to ensure the margin is kept at $2,000 (20%) so need help creating a formula that will raise the margin to a % that keeps your nominal margin rate whilst factoring the flat cpm fee and the impressions served.
1 Reply
You've had a number of views with no response as of this writing. I suspect that could be because, although I'm sure you are entirely clear on what you are saying, those of us from outside your working environment are having a hard time figuring out what you mean. For instance, you refer to "Fixed Margin" in your opening sentence, but nowhere else in the examples. Yes, you refer to margin fees and presumably there's a relationship between the two, but those margins fees aren't fixed (or if they are, it's in some undefined way).
And you no doubt understand the significance of adding "a rate card on the top" but that's just jargon from an outsider's point of view.
My suspicion is that the formula you're looking for is going to be very simple; but one needs to understand the situation more clearly to write it.
