Super detailed analysis of advertising monetization related indicators! Recommended collection~

Refers to the total number of ad requests issued by a certain ad slot during a certain period of time (when a user uses the APP, a certain ad slot will be triggered, which means an ad request is generated).

2) Ad filling amount/number

In simple terms, after the request is initiated, how many requests are responded to (such as responded by a third-party advertising platform) and the ads (to be delivered) are returned.

3) Ad exposure/display volume

Refers to the total number of ads that are actually effectively displayed in the requested ad slots. Each advertising platform has a different definition of effective display. Taking incentive videos as an example, some advertising platforms believe that when one pixel of the ad is displayed, it is an effective display, but some advertising platforms believe that the video must be 100% played to completion to be considered an effective display.

4) Ad fill rate

Refers to the percentage of all ad requests that are responded to and return ads. Ad fill rate = number of ad fills/number of ad requests*100%.

Advertisement fill rate affects and determines the ultimate revenue of the media. A low fill rate indicates that the ad space within the APP is not fully utilized and the monetization effect is insufficient. Factors that may affect the fill rate may include: insufficient number of buyers, insufficient traffic distribution and scheduling capabilities, or the impact of the external market environment (off-season, peak season), etc.

5) Advertising exposure

Ad exposure rate = ad exposure amount/ad fill amount*100%.

6) Ad clicks

That is, the total number of times users click on the ad during the delivery period.

7) Ad click-through rate

That is, how many times the ad is displayed will result in 1 click. Ad click-through rate = ad clicks/ad exposures*100%.

The revenue generated by clicks is much higher than that generated by pure impressions, so if media want to increase revenue, improving click-through rate is a very important part. The click-through rate is related to factors such as whether the material is attractive and whether the target audience is accurate. This requires the media to use big data and artificial intelligence to analyze user behavior and make accurate advertising recommendations, so it requires relatively high technical capabilities.

8) eCPM

The advertising revenue that can be obtained for every 1,000 impressions/displays of the media. It is an important parameter used to reflect the monetization ability of media, but it cannot directly represent the actual media advertising revenue.

The derivation formula is as follows (with CPC as the settlement method):

eCPM = total revenue / impressions * 1000;

Click-through rate = clicks/exposures*100%;

Total revenue = advertising unit price * click volume = advertising unit price * click rate * exposure volume;

So: eCPM = advertising price * click-through rate * 1000

● eCPM=CPC*CTR*1000

9) Advertising revenue

It is the media’s actual advertising revenue. If the media is charged by CPM, the revenue = CPM*impressions/1000; if the media is charged by CPC, the revenue = CPC*clicks.

CPM: cost per thousand impressions. For advertisers, it is the cost they need to pay to the media every time their ad is displayed one thousand times; for the media, it is the fee they charge advertisers every time their ad is displayed one thousand times.

CPC : Cost per click. For advertisers, it is the cost they need to pay to the media every time a user clicks on the ad; for the media, it is the fee they charge advertisers every time a user clicks on the ad.

10) ARPU

Represents the average advertising revenue brought/contributed by each active user over a period of time (such as daily, weekly, monthly, etc.). The calculation formula is: Advertising ARPU = advertising monetization revenue/(daily/weekly/monthly) number of active users.

Compared with eCPM, advertising ARPU can more directly reflect the monetization ability of a product. When the total number of active users is constant, the higher the advertising ARPU, the higher the advertising revenue.

Of course, in addition to the above, there are many other parameter indicators related to advertising monetization. Due to space limitations, they are not listed here one by one.