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Valuation Methods
Detailed documentation of all mathematical formulas and methodology used in the Attention Valuation model.

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  • Abbreviated (default): Short mathematical notation (e.g., TAV = (SV + MV) × BM)
  • Full: Complete text-based formulas (e.g., Total Attention Valuation = (Sales Value + Media Value) × Brand Multiplier)
Toggle between notations to switch between quick reference (abbreviated) and detailed understanding (full notation).

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Total Attention Valuation

The primary metric combining all value components.

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Formula

Abbreviated: TAV = (SV + MV) × BM Full: Total Attention Valuation = (Sales Value + Media Value) × Brand Multiplier

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Components

  • Sales Value (SV) - Total revenue from merchandise, matchday, and player sales
  • Media Value (MV) - Total value from all media exposure and engagement
  • Brand Multiplier (BM) - Qualitative factor based on brand strength (1.0 - 10.0)
The Brand Multiplier amplifies the combined Sales and Media Value, reflecting how brand strength influences overall valuation.

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Total Reach

Aggregate measure of audience across all channels.

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Formula

Abbreviated: TR = TV + WTV + PR + DI + SI + A + HG Full: 
Total Reach = TV Viewers + Web TV Views + PR Reach
            + Digital Impressions + Social Impressions
            + Attendance + Hospitality Guests

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Components

  • TV Viewers - Total television audience
  • Web TV Views - Online streaming views
  • PR Reach - Press and media coverage reach
  • Digital Impressions - Digital advertising impressions
  • Social Impressions - Number of people who saw social media posts
  • Attendance - Physical event attendance
  • Hospitality Guests - VIP and hospitality attendees
What’s NOT Included: Social Followers and Social Engagements are NOT included in Total Reach. Followers represent potential audience (not actual reach), while Engagements are already counted within Social Impressions (anyone who engaged also saw the post).

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Sales Value

Direct revenue calculation.

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Formula

Abbreviated: SV = MR + MDR + PSV Full: Sales Value = Merchandise Revenue + Matchday Revenue + Player Sales Value

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Components

  • Merchandise Revenue (MR) - Total sales of club merchandise
  • Matchday Revenue (MDR) - Ticket sales and matchday income
  • Player Sales Value (PSV) - Cumulative transfer fees from player sales
Sales values are entered directly - no CPM calculation involved for these components.

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Media Value

Calculated value from media exposure and engagement.

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Overall Formula

Abbreviated: MV = TV_v + WTV_v + PR_v + D_v + S_v + A_v + H_v Full: 
Media Value = TV Value + Web TV Value + PR Value
            + Digital Value + Social Value
            + Attendance Value + Hospitality Value

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General Calculation Pattern

Most media components follow this pattern: Formula: Component Value = (Impressions × CPM) ÷ 1000
CPM = Cost Per Mille: CPM is always “per thousand impressions”, which is why we divide by 1,000 in calculations.

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Media Value Components

Detailed formulas for each media channel.

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TV Value

Formula: TV_v = d × v × s × (CPM ÷ 1000) Components:
  • d = Duration (minutes)
  • v = Viewers
  • s = Size Factor (screen coverage percentage)
  • CPM = Cost per thousand viewers
Size Categories:
  • S: ~1-5% screen coverage (Factor: 0.4)
  • M: ~5-10% screen coverage (Factor: 0.7)
  • L: ~10-15% screen coverage (Factor: 1.0)
  • XL: 15%+ screen coverage (Factor: 1.0)
Example: 45 min × 200,000 viewers × 0.15 (L size) × 30.00 CPM ÷ 1000 = 270,000 kr
Size Factor: Represents how much of the screen your branding occupies during TV exposure. Larger coverage = higher multiplier.

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Web TV Value

Formula: WTV_v = v × (CPM ÷ 1000) Components:
  • v = Views
  • CPM = Cost per thousand views
Example: 500,000 views × 10.00 CPM ÷ 1000 = 5,000 kr

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PR Value

Formula: PR_v = r × (CPM ÷ 1000) Components:
  • r = Reach (audience reached through press coverage)
  • CPM = Cost per thousand reach
Example: 1,000,000 reach × 6.00 CPM ÷ 1000 = 6,000 kr

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Digital Value

Formula: D_v = i × (CPM ÷ 1000) Components:
  • i = Impressions (digital ad impressions)
  • CPM = Cost per thousand impressions
Example: 2,000,000 impressions × 4.00 CPM ÷ 1000 = 8,000 kr

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Social Value

Formula: 
S_v = (f × CPM_f ÷ 1000) + (i × CPM_i ÷ 1000) + (e × CPM_e ÷ 1000)
Components:
  • f = Followers (total social media followers)
  • i = Impressions (post views)
  • e = Engagements (likes, shares, comments)
  • CPM_f = Followers CPM
  • CPM_i = Impressions CPM
  • CPM_e = Engagements CPM
Three Sub-Components:
  1. Followers: Total followers × Followers CPM ÷ 1000
  2. Impressions: Post impressions × Impressions CPM ÷ 1000
  3. Engagements: Likes + shares + comments × Engagements CPM ÷ 1000
Example: (50,000 followers × 2.00 CPM + 200,000 impressions × 4.00 CPM + 10,000 engagements × 8.00 CPM) ÷ 1000 = 980 kr
Social media value uses three separate CPM rates because followers, impressions, and engagements represent different value types. Engagements typically have higher CPM due to stronger audience connection.

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Attendance Value

Formula: A_v = a × (CPM ÷ 1000) Components:
  • a = Attendance (physical event attendance)
  • CPM = Cost per thousand attendees
Example: 75,000 attendance × 15.00 CPM ÷ 1000 = 1,125 kr

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Hospitality Value

Formula: H_v = g × vpg Components:
  • g = Guests (number of hospitality/VIP guests)
  • vpg = Value per Guest
Example: 100 guests × 1,800 kr per guest = 180,000 kr
Different Calculation: Hospitality uses “value per guest” instead of CPM because VIP experiences have fixed premium pricing rather than impression-based valuation.

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Brand Value Indicator

Qualitative brand strength measurement on a 1-10 scale.

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Brand Multiplier Formula

Abbreviated: BM = (P + CSR + C + L) ÷ 4 Full: Brand Multiplier = (Popularity + CSR + Culture + Loyalty) ÷ 4

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Components (1-10 Scale)

  • Popularity (P) - Public recognition and fanbase size
  • CSR - Corporate Social Responsibility (social and environmental impact)
  • Culture (C) - Club values, traditions, and identity
  • Fans/Loyalty (L) - Fan engagement and loyalty strength

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Component Value Contribution

Each brand indicator contributes monetary value to the total valuation: Formula: 
Popularity Value = (Sales Value + Media Value) × (Popularity ÷ 4)
CSR Value = (Sales Value + Media Value) × (CSR ÷ 4)
Culture Value = (Sales Value + Media Value) × (Culture ÷ 4)
Loyalty Value = (Sales Value + Media Value) × (Loyalty ÷ 4)
What This Means: Each component’s monetary value represents how much it contributes to the Total Attention Valuation. The sum of all four component values equals the total brand amplification effect on Sales + Media Value. Example: If Sales + Media = 1,000,000 kr and Popularity = 8:
  • Popularity contributes: 1,000,000 × (8 ÷ 4) = 2,000,000 kr
Why Divide by 4? Since there are 4 indicators, dividing by 4 ensures the average score (typically 5-7 out of 10) produces a reasonable multiplier (1.25-1.75x) rather than an unrealistic 20-28x.

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CPM (Cost Per Mille)

Industry-standard advertising metric.

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Formula

Abbreviated: CPM = (c ÷ i) × 1000 Full: CPM = (Cost ÷ Impressions) × 1000

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Explanation

CPM (Cost Per Mille/Thousand) is the standard metric used in advertising to measure the cost of 1,000 impressions. In the valuation model, market-standard CPM rates for each media channel are used to calculate the equivalent advertising value of organic exposure and engagement.

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Typical CPM Ranges

By Channel (varies by market):
  • TV: €20-€50 (depends on time slot, audience)
  • Web TV: €5-€15
  • PR: €3-€10
  • Digital: €2-€8
  • Social Followers: €2-€5
  • Social Impressions: €5-€15
  • Social Engagements: €8-€20 (highest due to interaction)
  • Attendance: €10-€20
Market-Specific: CPM rates vary significantly by geography, industry, and audience demographics. Use rates appropriate for your specific market.

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Methodology Note

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Approach

The Attention Valuation methodology combines:
  1. Quantitative Metrics - Sales and media value (objective, measurable)
  2. Qualitative Factors - Brand strength (subjective, scored 1-10)
This provides a comprehensive measure of organizational value in the attention economy.

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Philosophy

Modern organizations derive value not only from direct revenue but also from the attention they command across various channels. The Brand Multiplier acknowledges that strong brands can leverage attention more effectively, creating a compounding effect on overall valuation.

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Updates

All calculations use market-standard CPM rates and are updated periodically to reflect current media market conditions.
Industry Standards: The methodology follows industry-standard advertising valuation practices, making it recognized and accepted by sponsors and stakeholders.

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Practical Example

Complete calculation walkthrough:

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Input Data

Sales:
  • Merchandise Revenue: 500,000 kr
  • Matchday Revenue: 300,000 kr
  • Player Sales: 2,000,000 kr
Media:
  • TV: 45 min × 200,000 viewers × L size (0.15) × 30 CPM
  • Web TV: 500,000 views × 10 CPM
  • PR: 1,000,000 reach × 6 CPM
  • Digital: 2,000,000 impressions × 4 CPM
  • Social: 50,000 followers × 2 CPM + 200,000 impressions × 4 CPM + 10,000 engagements × 8 CPM
  • Attendance: 75,000 × 15 CPM
  • Hospitality: 100 guests × 1,800 kr/guest
Brand:
  • Popularity: 8
  • CSR: 7
  • Culture: 9
  • Loyalty: 8

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Step 1: Calculate Sales Value

SV = 500,000 + 300,000 + 2,000,000 = 2,800,000 kr

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Step 2: Calculate Media Value

TV: 45 × 200,000 × 0.15 × 30 ÷ 1000 = 270,000 kr
Web TV: 500,000 × 10 ÷ 1000 = 5,000 kr
PR: 1,000,000 × 6 ÷ 1000 = 6,000 kr
Digital: 2,000,000 × 4 ÷ 1000 = 8,000 kr
Social: (50,000 × 2 + 200,000 × 4 + 10,000 × 8) ÷ 1000 = 980 kr
Attendance: 75,000 × 15 ÷ 1000 = 1,125 kr
Hospitality: 100 × 1,800 = 180,000 kr

MV = 270,000 + 5,000 + 6,000 + 8,000 + 980 + 1,125 + 180,000 = 471,105 kr

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Step 3: Calculate Brand Multiplier

BM = (8 + 7 + 9 + 8) ÷ 4 = 8 ÷ 1 = 8

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Step 4: Calculate Total Attention Valuation

TAV = (2,800,000 + 471,105) × 8 = 3,271,105 × 8 = 26,168,840 kr
Result: Total Attention Valuation = 26,168,840 kr

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Use Cases

Use methodology documentation to:
  • Explain valuation credibility to sponsors
  • Show industry-standard calculations
  • Justify pricing with transparent formulas
  • Build trust through clear methodology

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Budget Planning

Use formulas to:
  • Forecast valuation impact of investments
  • Optimize CPM spending across channels
  • Model “what-if” scenarios
  • Set realistic targets

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Team Training

Use as reference for:
  • Onboarding new team members
  • Understanding valuation components
  • Explaining calculations to stakeholders
  • Validating data entry accuracy

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Audit and Compliance

Use for:
  • Financial audit trails
  • Transparent reporting
  • Standardized calculations
  • Regulatory compliance

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Common Questions

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Why Use CPM Instead of Actual Costs?

CPM represents the market value of exposure, not your actual spending. If you get 1 million TV viewers organically, the CPM calculation shows what that exposure would cost to buy as advertising - this is the value you’re providing to sponsors.

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Why Does Brand Strength Multiply the Total?

Strong brands leverage attention more effectively. A post from Real Madrid gets more engagement than the same post from a local club. The multiplier reflects this brand amplification effect on attention value.

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Can I Customize CPM Rates?

Yes! CPM rates should reflect your specific:
  • Geographic market (Denmark vs US vs UK)
  • Industry (sports vs entertainment vs B2B)
  • Audience demographics (premium vs mass market)
Consult with media buyers or use industry reports for accurate rates.

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Why Divide by 1,000 in Formulas?

CPM means “Cost Per Mille” (mille = thousand in Latin). The calculation is: Total Cost = (Impressions ÷ 1000) × CPM. Dividing by 1,000 converts impression count to “thousands of impressions” before multiplying by the per-thousand cost.

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What If I Don’t Have All Data?

Enter zero for missing components. The model calculates value only from available data. However, more complete data = more accurate valuation for sponsor proposals.

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Next Steps

Create Valuations

Put methodology into practice and start calculating value

Verify CPM Rates

Research market-appropriate CPM values for your region

Share with Stakeholders

Use as documentation for transparent reporting

View Reports

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