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Valuation Parameters
Inputs used to value promotions or media.
Definition
Valuation parameters include baseline, lift, subsidy, and cost assumptions.
How to Calculate
Document assumptions and sources, then review often.
Why it Matters
Assumptions drive ROI results.
Key Advantages
Improves transparency and buy-in.
Example
Baseline of 800 units, lift of 25 percent, subsidy 40 percent.
Use it to
Set inputs used to value financial outcomes such as discount rate or lifespan. Adjust parameters to test sensitivity of valuation conclusions.
