Case Study: Online Trading Academy
Online Trading Academy helps their students learn the art of trading and what it takes to become a successful trader or investor. In the Professional Trader course, students learn trading skills and then practice trading live, in the classroom. With over 25,000 graduates, Online Trading Academy offers professional instruction from experienced Wall Street professionals, as well as a wide array of beneficial home study materials to supplement classroom study. Online Trading Academy is a 60 million + company with campuses both domestically and internationally.
Cost Per Mille (CPM) is used in this case study to compare the media efficiency between paid advertising versus the value of an editorial placement. Even though there is a significant difference between editorial coverage and paid advertisements, CPM is a metric relevant for making a comparison between the efficiency of advertising vs. PR.
Marketing Maven Public Relations, Inc. tracked all of the placements we were able to generate for Online Trading Academy. Each media outlet was contacted for their CPM* as well as the monthly impressions to determine our total. Online Trading Academy’s average CPM was calculated (at $77.96) and a total value was established. To pay for advertisements in the same magazines in which we got placements for Online Trading Academy, they would have spent $2,369,934.79. *CPM is a term used in advertising that stands for cost per mille, or the advert cost per 1,000 views.
By calculating in the total price Online Trading Academy paid for 12 months of PR services, we were able to calculate a CPM that was generated by our efforts. Comparing costs at this point, it is easy to see the value of spending for a PR campaign as compared to the $2,369,934.79 they would have spent in advertising. They saved over $2 million. The new CPM also allows us to show our efficacy and value by comparing what they paid for against what they would have paid without our service. Compared to $77.96 CPM that was expected, our $2.27 CPM was a great investment, delivering their message to the masses at an affordable cost.