TKP (Cost per Thousand Impressions)

TKP is an important metric in online marketing and advertising that indicates the price for 1,000 contacts with a target audience. This metric helps advertisers assess and compare the costs and efficiency of their campaigns, particularly in terms of the reach of their ads. 

The TKP is calculated using the following formula: 

TKP=Cost of the advertising campaign / Reach x 1000 

Example: If an advertisement costs 500 euros and reaches 100,000 users, the TKP is calculated as: 

TKP=500 euros / 100,000 reach x 1000 = 5 euros 

This means that for 5 euros, 1,000 contacts were made with the ad. 

The TKP is an important metric because it helps advertisers measure and compare the effectiveness and cost of campaigns. In this way, they can optimize ad placements and partnerships to get the best value for their marketing spend. 

1. Display Advertising: When placing banner ads or display ads on websites, the TKP is a common basis for calculating the price per 1,000 impressions. 
2. Social Media Advertising: On platforms like Facebook, Instagram, or LinkedIn, the TKP is used to determine the price per 1,000 people reached. 
3. Video Advertising: The TKP is also used for video ads, such as on YouTube, to calculate reach and costs. 
4. Print Advertising: In traditional media like newspapers and magazines, the TKP is used to calculate the price per 1,000 printed copies. 

• Cost Control: Advertisers can calculate the cost of a campaign in advance and ensure that the budget is used efficiently. 
• Comparability: The TKP is a standardized metric, allowing advertisers to compare advertising efforts across different channels and media and choose the best platform for their target audience. 
• Measurability: The TKP provides precise measurement of reach and helps advertisers estimate the success potential of a campaign. 

• No Insight into Conversion: The TKP only measures reach, not conversion rate (the actual success of the campaign in terms of sales or leads). A low TKP does not automatically mean that the advertising campaign generates high sales or leads. 
• Skewed Perception of Advertising Effectiveness: The TKP does not take into account the quality of contacts. It is possible that a campaign with a low TKP reaches a less relevant audience that may not lead to an actual purchase. 

The TKP (Cost per Thousand Impressions) is a valuable metric for advertisers to assess and optimize the costs and effectiveness of advertising campaigns, especially in online advertising. It helps calculate the price for reaching 1,000 contacts. However, the TKP should not be considered in isolation — it should be used in conjunction with other metrics, such as conversion rate and return on investment (ROI), to measure and evaluate the actual success of an advertising campaign.