Allocating revenue

How Ad Manager distributes revenue across various dimensions

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. 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 contracted revenue for proposals or proposal line items regardless of the status of a proposal (sold, unsold, or retracted) and even for proposals that have completed delivery were reconciled. These metrics produce a values based on net cost or gross cost multiplied against contracted volume. Contracted revenue metrics never use reconciled values.

Allocating revenue

When using any time unit or inventory dimensions, Ad Manager allocates revenue based on actual delivery and total contracted revenue. These dimensions include:

  • Ad unit
  • Custom criteria
  • Date
  • Day of week
  • Month and year
  • Week

For example, suppose a proposal line item's total contracted revenue were $100,000. The proposal line item targeted three ad units: Ad Unit A, Ad Unit B, and Ad Unit C. During the lifespan of the proposal line item, it delivered a total of 200,000 impressions. Actual deliver of these impression to each ad unit was as follows:

  • Ad Unit A: 100,000
  • Ad Unit B: 40,000
  • Ad Unit C: 60,000

Based on total contracted revenue, Ad Manager will allocate revenue to each of these ad units based total impressions and on how many impressions delivered to each one. Ad Unit A served 50% of total impressions, Ad Unit B served 20% of total impressions, and Ad Unit C served 30% of total impressions. Ad Manager then distributes total contracted revenue based on the percentage of delivery each ad unit won:

  • Ad Unit A: $50,000.00
  • Ad Unit B: $20,000.00
  • Ad Unit C: $30,000.00

Ad Manager applies this same method of allocating revenue to key-values or any time unit dimensions. If, for instance, you were interested in seeing how this proposal line item delivered for each day, you could add the "Day of week" dimension to your report or query. Ad Manager would then use the number of impressions that actually delivered on each day and perform a similar allocation of contracted revenue to each day.

Ad Manager applies this following general methodology:

d1 + d2 + ... + dn = t

where d is actual delivery for one member of total members in the dimension you selected and where t is total delivery for all members included in the dimension. Note that the sum of delivery for key-values might be less than the total delivery for a line item since not every impression or click delivered by a line item belongs to key-values. Ad Manager can now allocate contracted revenue to each member:

(d1/t x r) + (d2/t x r) + ... + (dn/t x r) = r

where r is total contracted revenue for all members of the dimension. In the case of ad units and time dimensions, this value is equivalent to total contracted revenue for the line item. In the case of key-values, since not every impression or click delivered by a line item belongs to a key-value, this value might be less than the total contracted revenue for a line item.

Dividing the the delivery for each member by total delivery (dn/t) and then multiplying that by total contracted revenue results in each member's share of contracted revenue.

Note that in allocating volume, Ad Manager might need to use decimal values. However, decimal values are not displayed in reports and queries. Since Ad Manager rounds half values up and less than half values down, you might see some counter-intuitive results in reports and queries. For example, suppose a line item delivered for three days evenly and that total delivery was 1,000,000 impressions. For each day, Ad Manager allocates impressions as follows:

333,333.33 + 333,333.33 + 333,333.33 = 1,000,000

However, in queries and reports, you would see:

Day Volume
Day one 333,333
Day two 333,333
Day three 333,333
TOTAL: 1,000,000
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