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STR in internet advertising
STR (Sell Through Rate) - is the product's sales ratio, measured in percentages. It shows the percentage of successful sales from the total number of goods that the company had.
STR calculation formula:
STR = number of units sold / (number of units sold + number of remaining unsold units)
For example, if the automobile salon received 20 cars from the manufacturer, and only 12 of them were sold, then STR will be equal to 60% (12/(12+8)). Thus, with the help of the sales indicator, the company can evaluate the effectiveness of various promotions, sales, advertising campaigns, certain time periods, seasons, etc. e.
If the STR is too low, then the product is not in demand by the consumer.
If STR is high, the company is moving in the right direction.
Measuring of products' marketability should be done for each individual group of goods/services and taking into account various factors that can influence STR to a greater or lesser extent (time of year, fashion trends, preferences, geography, etc.).
Often, the product's sales ratio grows over time. This happens as a result of successful advertising campaigns, competent promotion of the new product, dissemination of information and increase in popularity of the brand.
STR in internet advertising
STR marketability indicator is also present in internet advertising. It helps to evaluate the effectiveness of the site from the point of view of using advertising space. That is, it can be used as the coefficient of sales of advertising spots on the platform.
Each advertising block has its own effectiveness, which means that the STR indicators for each place will differ. It is possible to measure STR both in the section of the entire site page and in the section of a separate place. For example, the advertising block located at the top of the page is in great demand from advertisers. Advertising spot was bought out by advertisers for the whole year except for the month of January. So if there are 360 days in a year, of which 329 days were paid by advertisers, then this means that the sales ratio of this place is 91.4% (329/(329+31)).
Advertising placed on barter or exchange is not considered. It always has 100% STR, as banners and ads are placed in a mandatory order.
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