What is the Hookit Valuation Model?
Every sponsorship dollar spent should be measurable and comparable. To do that, you need a way to track each investment using a standard set of KPIs, especially value. That’s where the Hookit Valuation Model™ and Adjusted Ad Value (AAV) come in. The Hookit Valuation Model is based purely off engagement, never assumptive metrics like impressions. Fans have to like, comment on, or share branded content for value to accrue. Once you’ve got valuation for each of your portfolio investments, you can make decisions on which to keep, which to grow, and which to exit. That’s how smarter sponsorship decisions are made.
The Hookit Valuation Model (HVM) allows brands to get actual ROI from social media by putting a dollar value to social media content with brand promotion. The Hookit platform aggregates all posts that have a brand logo or text promotion. Each post is assigned a Maximum Ad Value (MAV) based on actual Cost per Engagement (CPE) market rates then scored on Promotion Quality to arrive at an Adjusted Ad Value (AAV). That’s a lot of acronyms, so we’ve explained it in simple terms below.
MAXIMUM AD VALUE (MAV)
Formula for MAV: Engagements X Cost Per Engagement
Cost for an ad on the platform to get the level of engagement in the post being measured. Assumes 100% creative control.
Cost per Engagement (CPE) values are specific to interaction type (like, comment, share, view) and platform. They are updated daily and derived by averaging auction costs, actual campaign costs, and 3rd party supplied costs.
Sourced from Ayzenberg Group
X
PROMO SCORE
0 – 100% score based on quality of promotion
Visuals (logos, products) and text (@ mentions, # hashtags, keywords, links) are analyzed for brand promotion quality. This down weights max ad value.
Quality is scored on the factors shown to the right. A perfect ad would score a promotion quality of 100%. A post must have excellent visual AND text promotion to score a 100%.
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ADJUSTED AD VALUE (AAV)
The value of the post to the brand measured
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