Calculating Holdout for Data with Percentage-Based Pricing

When leveraging Resonate’s data on advertiser direct (social media) platforms, it is essential to accurately calculate the required data holdout to comply with percentage-based pricing agreements.

Why Data Holdout Calculation Matters: Calculating the correct data holdout ensures that you can track and manage your media spending accurately, stay within budget constraints, and maintain transparency in reporting.

Step-by-Step Calculation:

1. Identify the Total Overall Budget:
   • Start by determining the total media budget allocated for the social platform campaign.
   • Example: Let’s assume the overall media budget is $10,000.
2. Determine the Media Rate Charged by Resonate:
   • Resonate charges a percentage of the media budget. In this example, the rate is 12%.
3. Calculate the Net Media Spend:
   • Divide the overall media budget by the Resonate media rate + 1.
   • Formula:
     • 
   • Example Calculation:
     • =$8,929
4. Calculate the Required Data Holdout:
   • To account for the Resonate data fee within the overall media budget, subtract the media spend from the total budget to determine the amount allocated for data.
   • Formula: Total Budget – Media Spend
   • Example Calculation: $10,000 - $8,929 = $1,071
5. Check your Math
   
   • Media Spend + Data Holdout = Total Overall Budget
   • $8,929 + $1,071 = $10,000

Best Practices:

• Regular Monitoring: Continuously track media spend to ensure adherence to the holdout requirement.
• Transparent Reporting: Document calculations and maintain records for auditing purposes.
• Adjust for Changes: If the media budget fluctuates, recalculate the data holdout accordingly.

By following these steps, you can accurately calculate the data holdout required for percentage-based pricing on social platforms. Proper holdout management ensures compliance with pricing agreements and enables efficient campaign execution. For further assistance, please contact your Customer Success Manager.