Table of Contents
Overview
On a campaign or line item, a revenue value can be set, which can be used to report on the revenue made from running a given campaign. In turn, a profit margin can be calculated by subtracting spend from revenue.
Revenue Calculation Methods
This article explains the various revenue calculation methods used in advertising campaigns and how to interpret these calculations in log files.
CPM (Cost Per Mille)
Revenue calculation based on impressions:
- Formula: Revenue = Revenue Amount × (impressions ÷ 1000)
- In log files: When revenue type is CPM, the revenue value equals Revenue Amount ÷ 1000 (since each log line represents a single impression)
CPC (Cost Per Click)
Companion ad clicks are not included in CPC calculations
Revenue calculation based on user clicks:
- Formula: Revenue = Revenue Amount × clicks
- In log files: When revenue type is CPC, the revenue value equals:
- Revenue Amount when clicks = 1
- Zero when no clicks occur
CPCV (Cost Per Complete View)
Revenue calculation based on completed video views:
- Formula: Revenue = Revenue Amount × Video Completes
- In log files: When revenue type is CPCV, the revenue value equals:
- Revenue Amount when video_completes = 1
- Zero when the video is not completed
CPI/CPA (Cost Per Installation/Acquisition)
Revenue calculation based on conversions:
- Formula: Revenue = Revenue Amount × conversions
- In log files: When revenue type is CPI or CPA, the revenue value equals:
- Revenue Amount × conversions when conversions > 0
- Zero when no conversions occur
For CPI/CPA models, multiple conversions can be attributed to a single impression, potentially resulting in a revenue value greater than one conversion. Due to these attribution complexities, we recommend using Conversion Log files rather than Win Log files for accurate attribution and revenue calculation.
| Revenue Model | Calculation Basis | Formula | Log File Representation |
|---|---|---|---|
| CPM | Impressions | Revenue Amount × (impressions ÷ 1000) | Revenue Amount ÷ 1000 |
| CPC | Clicks | Revenue Amount × clicks | Revenue Amount (when clicks = 1) |
| CPCV | Video Completes | Revenue Amount × Video Completes | Revenue Amount (when video_completes = 1) |
| CPI/CPA | Conversions | Revenue Amount × conversions | Revenue Amount × conversions (when conversions > 0) |
Revenue Priority for Line Items and Campaigns
Revenue can be set at either the campaign level or the line item level. If a revenue is set at the line item level, this takes precedence over any revenue setting at the campaign level. Campaign-level revenue will be applied for any line items without their own revenue setting.
Examples
Campaign: CPM $1.00; no line item settings
Revenue = $1.00 * (Impressions / 1000)
Campaign: CPM $1.00; Line Item: CPM $2.00
Revenue = $2.00 * (Impressions / 1000)
Campaign: CPM $1.00; Line Item: CPA $10.00, Conversions: 1
Note: Impressions for a line item that does not drive a conversion will have revenue = 0 and will not have revenue calculated according to the campaign’s revenue type. If a revenue is set at the line item, the line item’s revenue calculation always is used instead of the campaign’s revenue setting.
Revenue = $10.00 * 1 = $10
Campaign: CPM $1.00; Line Items: one with CPM $2.00 (A), one without any setting (B)
Revenue = $2.00 * (ImpressionsA / 1000) + $1.00 * (ImpressionsB / 1000)