This article explains how Adserver.Online platform calculates the owner's profit, advertiser's spend, and publisher's revenue.
The base formula to calculate revenue is quite obvious:
Owner's profit = Advertiser's spend – Publisher's revenue.
The tricky thing here is how it varies depending on the publisher's revenue model.
Example 1
The publisher's revenue is calculated from the advertiser's spend. This explains how the "Revenue share" revenue model works.
The campaign's rate is set to $10 CPM
Publisher's Revenue share is set to 80%
Let's say ads were displayed 5000 times on a website, and an advertiser received 5000 impressions.
In this case:
the advertiser will pay the owner (5000/1000) * $10 = $50,
the owner will pay the publisher $50 * 80% = $40,
owner's revenue will be $50 – $40 = $10.
Example 2
In this example, the publisher's revenue doesn't take the advertiser's spend into account because the flat revenue model is chosen.
The campaign's rate is set to $15 CPM
The publisher's rate is a Flat rate of $5 CPM
Let's say a website displayed ads 10000 times, and an advertiser received 10000 impressions.
In this case,
the advertiser will pay the owner (10000/1000) * $15 = $150,
the owner will pay the publisher (10000/1000) * $5 = $50,
owner's revenue will be $150 – $50 = $100.
Representation in reports
Advertiser's Spend, Publisher's Revenue, and Owner's profit are all available in stats reports. In order to see them, you should enable the corresponding columns.
Realtime bidding
The recommended and most widely used revenue model for the DSP scenario (buying traffic programmatically via OpenRTB or XML/JSON feeds) is Revenue share. So the example here would be the same as in Example 1 above.
If the campaign's CPM rate is $10 and the revenue share is set to 80%, the bid will be $10 * 80% = $8. So basically, the difference between a campaign's rate and a bid comprises the owner's revenue.
In the case of the Flat Rate revenue model, the bid will always be equal to the flat rate value specified on the zone form.