If an impression is viewable 20% of the time, what is the expected value for an impression with a $5 base bid?

To determine the expected value of a viewable impression when an impression is only viewable 20% of the time with a base bid of $5, you need to calculate the effective value per impression based on its viewability.

The expected value can be calculated by multiplying the base bid by the percentage of time the impression is viewable. In this case, you would take the base bid of $5 and multiply it by the viewability rate of 20% (or 0.20).

Here’s how the calculation works:

Expected Value = Base Bid × Viewability

Expected Value = $5 × 0.20

Expected Value = $1.00

This demonstrates that while the base bid is $5 for an impression, because it is only viewable 20% of the time, the effective or expected value of that impression is $1.00.

This calculation highlights the principle that in advertising and impression management, the actual value derived from an impression must factor in how often it is actually seen by the target audience.