Valuation Methods & Methodology
Understand the methodology behind attention valuation with industry-standard CPM-based metrics, brand strength assessment, and transparent value calculation components. This guide explains the concepts and components used in the Attention Valuation model. All detailed calculation formulas and mathematical documentation are available within the Methods section of the Valiyou app.Accessing Methods
Navigate to Valuations → Methods from the sidebar within the Valiyou app to access complete calculation documentation and formulas.Permission Required: At least one valuation permission (View or Edit) or Admin access
Complete Formula Documentation: All mathematical formulas, detailed calculations, and specific
methodology are available in the Methods section within the Valiyou platform. This ensures you
always have access to the most current calculation documentation as part of your subscription.
Methodology Overview
The Attention Valuation methodology combines quantitative and qualitative factors to provide a comprehensive measure of organizational value in the attention economy.Core Components
The valuation model consists of three primary components:- Sales Value - Direct revenue from merchandise, matchday, and player sales
- Media Value - Calculated value from media exposure and engagement across channels
- Brand Multiplier - Qualitative factor based on brand strength (1.0 - 10.0)
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.Total Attention Valuation
The primary metric that combines all value components to provide a comprehensive measure of your organization’s worth. Components:- Sales Value (direct revenue)
- Media Value (value from all media channels)
- Brand Multiplier (qualitative brand strength factor)
Total Reach
Aggregate measure of audience across all channels, combining:- 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).
Sales Value
Direct revenue calculation combining:- Merchandise Revenue - Total sales of club merchandise
- Matchday Revenue - Ticket sales and matchday income
- Player Sales Value - Cumulative transfer fees from player sales
Sales values are entered directly - no CPM calculation involved for these components.
Media Value
Calculated value from media exposure and engagement across multiple channels:- TV Value - Television exposure value
- Web TV Value - Online streaming value
- PR Value - Press and media coverage value
- Digital Value - Digital advertising value
- Social Value - Social media value (followers, impressions, engagements)
- Attendance Value - Physical event attendance value
- Hospitality Value - VIP and hospitality guest value
CPM-Based Calculation
Most media components use CPM (Cost Per Mille/Thousand) methodology to calculate value. CPM represents the market value of exposure - what that reach would cost to purchase as advertising.Complete Formula Documentation
All mathematical formulas, calculation steps, and detailed methodology are documented within the Methods section of the Valiyou platform.What’s Included in the App
The Methods section within Valiyou provides:- Complete mathematical formulas for all calculations
- Step-by-step calculation breakdowns
- Notation toggle (abbreviated vs. full formulas)
- Detailed examples with real numbers
- Component-by-component value contributions
- Market-specific guidance for CPM rates
Why In-App Documentation?
Keeping complete formula documentation within the platform ensures:- You always have access to the most current methodology
- Documentation stays synchronized with calculation updates
- Formulas are available when you need them during valuation creation
- Transparent methodology for sponsor proposals and stakeholder reporting
Use Cases
Sponsor Proposals
Use methodology to:- Explain valuation credibility to sponsors
- Show industry-standard approach
- Build trust through transparent methodology
- Justify pricing with recognized metrics
Budget Planning
Understand components to:- Forecast valuation impact of investments
- Optimize spending across channels
- Model “what-if” scenarios
- Set realistic targets
Team Training
Use as reference for:- Onboarding new team members
- Understanding valuation components
- Explaining calculations to stakeholders
- Validating data entry accuracy
Audit and Compliance
Use for:- Financial audit trails
- Transparent reporting
- Standardized calculations
- Regulatory compliance
Frequently Asked Questions
What is CPM methodology and how does it work?
CPM (Cost Per Mille) methodology calculates the cost of reaching 1,000 impressions. In valuation, we use industry-standard CPM rates to determine the advertising value of your organic media exposure. This represents what sponsors would pay for equivalent reach.Why use CPM instead of actual costs for valuation?
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 and what they would pay for equivalent reach.How are calculations standardized across industries?
The Attention Valuation methodology follows industry-standard advertising metrics used globally. CPM-based calculations, brand multiplier concepts, and reach aggregation align with practices recognized by marketing professionals, sponsors, and stakeholders worldwide, ensuring credibility and acceptance.Why does brand strength multiply the total valuation?
Strong brands leverage attention more effectively. A post from a well-known organization gets more engagement than the same post from a lesser-known entity. The brand multiplier methodology reflects this brand amplification effect on attention value - stronger brands create more value from the same exposure.Can I customize CPM rates for my market?
Yes! CPM rates should reflect your specific geographic market, industry sector, and audience demographics. Markets like Denmark, US, and UK have different CPM standards. Consult with media buyers or industry reports to use accurate rates for credible valuations.What metrics are included in the brand multiplier?
The brand multiplier uses four metrics on a 1-10 scale: Popularity (brand awareness), CSR (corporate social responsibility), Culture (brand identity strength), and Fans/Loyalty. These scores combine to create the multiplier that amplifies your sales and media value.What if I don’t have all data for calculations?
Enter zero for missing components. The methodology calculates value only from available data. However, more complete data equals more accurate valuation for sponsor proposals. Focus on collecting data for your highest-value channels first.How do industry standards affect valuation accuracy?
Using industry-standard CPM methodology ensures your valuations are recognized and trusted by sponsors, investors, and stakeholders. It provides a common language for discussing sponsorship value and makes your proposals more credible and defensible.Where can I find the complete calculation formulas?
All mathematical formulas and detailed calculation steps are available in the Methods section within the Valiyou platform. Navigate to Valuations → Methods to access complete formula documentation.How often is methodology updated?
The methodology is reviewed and updated periodically to reflect current media market conditions and industry best practices. Using in-app documentation ensures you always have access to the most current formulas and guidance.Changelog
January 26, 2026
- Updated: Removed detailed calculation formulas from public documentation
- Added: Reference to in-app Methods section for complete formula documentation
- Maintained: Conceptual explanations and component descriptions
- Enhanced: Focus on methodology understanding rather than specific calculations
- Improved: Guidance for accessing CPM rates and industry standards
January 19, 2025 (Update 2)
- Enhanced CPM source verification with direct links
- Added Nielsen pricing benchmarks
- Added Choozle research PDF link for digital advertising benchmarks
- Added IAB as additional industry source
- Added detailed “How to Access CPM Data” guidance
January 19, 2025 (Update 1)
- Updated currency examples to neutral format
- Added CPM rate source documentation
- Added market-specific guidance for CPM rates
- Improved CPM range descriptions
- Enhanced geographical market considerations
Initial Release
- Complete methodology overview
- CPM methodology explanation
- Brand multiplier concept
- Component descriptions