Ad Sales Unit 04 - How ads get priced

Allocated value

The agreed worth of one component within a package

CPM

Cost per thousand impressions

CPP

Cost per rating point

Floor

The minimum acceptable price for inventory

Gross

A price including agency commission

Net

A price after agency commission; what the seller receives

Opportunity cost

The value of the better deal foregone by accepting this one

Package

A bundle of inventory sold under one negotiated total

Rate card

Published list pricing, used as a negotiating anchor

Scatter

Inventory sold close to air at floating market prices

Sellout

The proportion of available inventory that has been sold

Tentpole

A rare, very high-demand event or premiere

Unit rate

A flat price for a single spot

Upfront

The annual advance bulk selling season

Yield management

Optimizing revenue from perishable, fixed-supply inventory