This article explains how Adserver.Online platform calculates 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 publisher's revenue model.
Example 1
Publisher's revenue is calculated from advertiser's spend. This explains how "Revenue share" revenue model works.
Campaign's rate is set to $10 CPM
Publisher's Revenue share is set to 80%
Let 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, publisher's revenue doesn't take advertiser's spend into account because the flat revenue model is chosen.
Campaign's rate is set to $15 CPM
Publisher's rate is a Flat rate of $5 CPM
Let 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 corresponding columns.
Realtime bidding
The recommended and most widely used revenue model for the DSP scenario is Revenue share. So the example here would be the same as in Example 1 above.
Just like before, if the campaign's CPM rate is $10 and the revenue share is set to 80%, the bid will $10 * 80% = $8. So basically, the difference between a campaign's rate and a bid comprises the owner's revenue.
Please note, the publisher's revenue model will be applied to a bid that our system offers to RTB/XML-networks.