EV(impression) =
P(valid)REAL · NON‑FRAUD
×
P(viewable)SEEN OR COMPLETED
×
P(attention)| CREATIVE · CONTEXT · STATE
×
P(conversion)| ATTENTION · PATH · OFFER
×
ENRCEXPECTED NET REVENUE
×
P(lift)INCREMENTAL · NOT HARVESTED
−
media_costTHE CLEARING PRICE
−
fatigue_costFUTURE RECEPTIVITY SPENT
−
risk_penaltyBRAND · SUITABILITY · COMPLIANCE
Plain reading: pay only for impressions likely to be seen, to earn real attention, to convert, to add net value, and to be incremental — minus what they cost, what they spend in future goodwill, and what they risk.
max_CPM ≈ 1000 × EVper‑impression × confidence_adjustment
The most we will ever rationally pay to reach this state, now.
Inside ENRC — and the term most systems omit
ENRC = Σt δt·E[ margin ] − ( acquisition + service + discount + cannibalization )
Expected net revenue is a discounted stream, not a single sale — and it subtracts the cost most platforms quietly ignore: cannibalization, the value that would have happened without paid media. If a customer would have bought anyway, the ad did not create value — it harvested demand. Refusing to pay for harvested demand is what separates capital allocation from spending, and it is why the engine needs ROAS360 incrementality downstream to keep itself honest.