If you're new to financial terms, see Get started with financial terms for an overview of preliminary steps that need to be completed before you can start creating financial terms. Review also Best practices working with partner default financial terms for general principles in managing your financial terms.
A financial term is the unit in DFP where you can capture the details of a revenue share agreement. A financial term is comprised of settings and associations. If details on how associations and settings work together, see Structure of financial terms and associations.
Under the 'Settings' tab:
- Click the Finance tab.
- Click New financial term. A new, blank financial term appears. The Settings tab is initially selected by default.
- Enter a name for the financial term.
- Select either Default or Override as the financial term type.
The financial term type is fixed and cannot be changed once saved.
See Financial term types for details on these types and how to use them.
- Select an option from the Payment model menu.
Different options appear based on the payment model selected. You can change the model at any time in the future.
- Percentage based—allows you to define the Share model as a simple percentage revenue share or tiered revenue share based on the number of impressions and the amount of revenue generated.
- CPM—allows you to define the Share model based on the CPM a partner generates. The value will be applied at a fixed rate.
- CPC—allows you to define the Share model based on the CPC a partner generates. The value will be applied at a fixed rate.
- Optional: select an option from the Pre-share cost menu.
Factor in any pre-share cost incurred by your network. Pre-share cost is split evenly between you and the partner. The partner's contribution to pre-share cost is taken from its revenue totals and added to the network's revenue total.
- Select an option from the Share model menu. The available options here change depending on what you selected under Payment model.
If you selected Percentage based as the Payment model, then you have the following options:
- Simple percentage—allows you to define a simple percentage revenue share.
- Tired by impressions—allows you to define tiers where the percentage revenue share changes based on the number of impressions that serve to a partners website.
- Tired by revenue—allows you to define tiers where the percentage revenue share changes based on the amount of revenue a partner earns.
- Optional: select an option from the Post-share cost menu.
Unlike pre-share cost, post-share cost is deducted from from the partner's share of revenue after financial terms have been applied. The partner's contribution to post-share cost is taken from its revenue totals and added to the network's revenue total.
- Optional: enter a value in the Minimum field. Available only if you select Default as your type.
A minimum is a guaranteed minimum payment, regardless of revenue generated. The value entered is payable to each affiliate/distribution partner associated with this financial term.
- Click Save.
Under the 'Associations' tab:
- Default financial terms allow you to target only partners and ad units and can accept a minimum payment to the partner for any impressions serving under the associations of the financial term.
- Override financial terms allow you to targeting a full range of items, such as orders, line items, and priority levels. Override financial terms cannot accept a minimum payment to the partner. See Targeting values in financial terms for details on the kinds of targeting you can add.
Video content can only be targeted in an override financial term.
- Click the Associations tab of a financial term.
- Select partners and ad units.
- If you've selected Override, you can click Next to add additional targeting types and values.
- Optionally select the checkbox next to Exclude impressions under this association from eCPM calculations.
Impressions that fall under this association will be excluded from eCPM calculation in partner reporting. See eCPM exclusion below for additional details.
- Click Save.
You can exclude impressions from eCPM calculations in partner reports to more accurately reflect the value you're delivering to your partners. Some reasons to apply an eCPM exclusion to an association include:
- Pass backs that you yourself do not monetize, such as redirects back to the partner for inventory you cannot fulfill. Impressions of this kind wouldn't generate revenue for you.
- House ads that don't generate revenue.
- Excluding campaigns that partners themselves have directly booked in DFP in order to show only the value that your sales team provides to the partner.
- Exclude remnant monetization.