Revenue models

Configure how you calculate "revenue" in Display & Video 360

In Display & Video 360, the "Revenue" column shows the final price you charge your clients for the line items you manage. This final price is meant to cover the cost of purchasing impressions plus any markup you charge for managing the advertiser’s campaign. Additionally, if this final price is meant to include the fees for using third-party ad serving or third-party data, you can base your line items' revenue on their total media cost.

A partner's default partner revenue model can be set on the Default Partner Revenue Model page in a partner's settings. If necessary, you can also set the partner revenue model for an individual line item in the Bid Pricing, Partner Revenue & Goals page in each line item's settings.

Insertion order and line item budgets are specified in terms of "revenue" or impressions.

How revenue models and profit are calculated

Revenue model Calculated as Considerations
CPM value CPM * impressions = revenue CPM value models can be risky because they aren't tied to the cost of purchasing impressions.
Media cost markup Media cost markup % * media cost = revenue Media cost is only the cost of buying impressions. It doesn't include platform fees, data fees, CPM fees, or any other fees. 
Total media cost markup Total media cost markup % * total media cost  = revenue Total media cost is comprised of media cost + any other fees included (like CPM fees + media fees + data fees )

Profit

Profit = revenue (calculated from one of the models above) - total media cost

Remember, when CPM value or media cost markup revenue models are used, total media cost is still subtracted to calculate profit. Set your markup percentage accordingly.

Ways of calculating revenue

In Display & Video 360 the "revenue" spent by your line items can be calculated one of the following ways:

  • Total media cost markup

    Use a revenue model of "total media cost markup" to calculate your line items' revenue based on marking up a line item's total media cost (which includes any partner costs and data costs) by a fixed percentage.

    Show me an example of how this works

    For example, say that your partner revenue model is a total media cost markup of 20%. If a the total media cost for a line item is $20,000 (which already includes the fee for using Display & Video 360), the revenue for the line item would be $24,000, calculated as:

      $20,000 Total media cost
    +  $4,000 Agency markup     ($20,000 Total media cost × .20 Markup)
    ---------------------
    = $24,000 Revenue
  • Media cost markup

    Use a revenue model of "media cost markup" to calculate your line items' revenue based on marking up a line item's media cost by a fixed percentage.

    Keep in mind that if you use media cost markup, your revenue numbers will not include ad serving (like platform fee) or data provider costs.

    Show me an example of how this works

    For example, say that your partner revenue model is a media cost markup of 20%. If a the media cost for a line item is $20,000, the revenue for the line item would be $24,000, calculated as:

      $20,000 Media cost
    +  $4,000 Agency markup        ($20,000 Media cost × .20 Markup)
    ---------------------
    = $24,000 Revenue
  • CPM value

    Use a revenue model of "CPM value" to calculate your line items' revenue based on a fixed CPM for every thousand impressions purchased.

    Most of time, you'll want to use "Total media cost markup" or "Media cost markup" as your revenue model.

    Note that using "CPM value" as your revenue model can be risky, since the CPM value isn't tied to the cost of purchasing impressions (reflected in a line item's media cost or total media cost). So use a revenue model of a fixed CPM value with caution.

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