Prorated values in reports

Learn about how Ad Manager prorates values and allocates revenue

Contracted revenue metrics are comprised of both sold and unsold proposals. The values generated are based on either the net cost or gross cost and contracted volume in a proposal line item. Actual delivery numbers from line items are not taken into account. Billing source, caps and rollovers, and reconciliation are not applied when using these metrics.

The general purpose of running a report or query using these metrics is to obtain a view of total value of proposals or proposal line items regardless of their status—sold, unsold, or retracted. These metrics provide numbers even for proposals that have been sold, and whose corresponding order and line items have completed delivery and been reconciled. Running a report or query using these metrics will always produce a result based on either the net cost or gross cost and contracted volume. Ad Manager uses no values associated with potential orders, line items, or reconciliation for these metrics.

Note that values might be prorated. See below Prorated values and potential disparity for details.

Ad Manager prorates and rounds values for proposal line items. This means running a report or query for a  specified time range (when that time range contains proposal line items that span beyond the time range) contains partial values for a proposal line item rather than total values. In some cases, the values that appear might seem counterintuitive due to Ad Manager's method of proration.

Ad Manager converts the lifespan of a proposal line item to minutes, applies prorated calculations, rounds values when necessary, and then inserts these values into reports and queries. This calculation is applied independently to contracted revenue values and contracted volume values. This means that there are cases in which multiplying the net rate against the prorated contracted volume does not perfectly equal the prorated contracted volume as calculated by Ad Manager.

Review the formula and example calculation below to understand how Ad Manager calculates prorated values in reports and queries.

Prorated formula and example calculations
Ad Manager converts the lifespan of a proposal line item into minutes. This conversion produces a value that assists Ad Manager in making more accurate calculations when prorating values.

The formula below is based on the net cost found in proposal line items. This formula is used to calculate prorated contracted revenue:

net cost x (prorated minutes/total minutes) = prorated contracted revenue

where net cost is the value from the Net cost field of a proposal line item, prorated minutes is a subset of the total minutes for a proposal line item, and where total minutes is the total number of minutes for a proposal line item during its entire lifespan.

Ad Manager similarly calculates prorated volume—CPM (impressions), CPC (clicks), CPD (days), or Cost per unit:

contracted volume x (prorated minutes/total minutes) = prorated volume

Let's take a concrete example, and you'll see how Ad Manager prorates values in reports and how a potential discrepancy could arise if you tried to apply a direct calculation.

Suppose you have a CPM based proposal line item with a net rate of $190, 10,000 contracted impressions, and thus a net cost of $1,900. This proposal line item starts on January 27 at 10:18:00 am and ends on February 28 at 4:30:00 pm. That's 32 days, 6 hours, and 12 minutes. Ad Manager converts this timespan to minutes for purposes of calculation:

  • 46,452 minutes

Ad Manager then calculates the number of minutes contained in each billing cycle. For this example, let's use the first cycle from January 27 10:18:00 am to February 1 12:00:00 am. That's 4 days, 13 hours, and 42 minutes or:

  • 6,582 minutes

We can now calculate prorated contracted revenue and prorated volume. Let's start with prorated contracted revenue:

$1,900 x (6,582/46,452) = $269.22

This is the value that appears for Contracted revenue (net). Now let's similarly calculated prorated volume—impressions in this case:

10,000 imps x (6,582/46,452) = 1,416.95 imps

Ad Manager always rounds down volume values, so the value that appears under Contracted impressions would be 1,416 impressions.

If you tried to apply a direct calculation between the impressions shown in this report the net rate ($190), you would get a revenue result that might not match the prorated contracted revenue as calculated by Ad Manager:

(1,416 imps x $190)/1000 imps = $269.04

While this approach might seem counterintuitive, it does provide greater accuracy in calculating prorated values.

Was this article helpful?
How can we improve it?