Understanding ad revenue
Any publisher will agree that the art of website monetization isn’t just about generating ad revenue; it’s about mastering it. Whether you’re a solo entrepreneur or at the stage of active growth, understanding the nuances of your website ad revenue generation is a non-negotiable aspect of your business success. With an array of website monetization companies offering numerous strategies to optimize your earnings, the difference between thriving and surviving lies in the data. Here we will explore the critical statistics that anyone serious about their website’s revenue must monitor.
To calculate website ad revenue one needs to evaluate essential statistics like eCPM, page views, monetizable page views, the share of traffic from the different countries you have, ad impressions, fill rate, and ad units per page.
Analyzing and weighing the future revenue of your website can help focus on a more efficient monetization strategy and find the right ad monetization partner. Ask us how we help our publishers.
Statistics to track
Having this said, let’s go to the statistics you should focus on when understanding the website’s performance and the possible income it can generate. Most of them can be found on their monetization platform dashboard.
1. Ad Impressions. This means how many times users see your ads. If your page has 3 ads, one pageview will equal 3 ad impressions.
2. CPM. The average amount being paid by the advertiser per thousand ad impressions.
3. Fill rate. Ad impressions by the total number of ad requests.
4. Ad requests. The number of times that a position is available to a buyer to bid on.
5. eCPM. Measures how much revenue a publisher generates per thousand ad impressions. It is important to remember, that being an experienced publisher you have this number provided by your ad monetization partner (contact us if you have any questions). There are 2 ways to calculate eCPM:
eCPM = CPM x Fill Rate
eCPM = (Total earnings / Total ad impressions)* 1000
6. Page views. The number of pages that have been viewed on a website. However, at Refinery89, we use more precise metrics for pageviews:
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- Measurable page views. Amount of times the ad tag loads on the page.
- Monetizable page views. The number of pages with ads on them to fill. The difference between the monetizable and the measurable page views shows pages that do not have ad units on them, where ads are blocked by the user, or where no consent is given to use cookies.
7. Ads Per Page. The average number of ads per page view.
Ads Per Page = Number Ad Impressions / Number Monetizable Page Views
8. Page RPM. Revenue Per Mille your website ads generate per thousand monetizable page views.
RPM = Total Revenue / (Monetizable Page views/1000)
Keep in mind Revenue Per Mille is also influenced by the number of ads per page, the fill rate, and the ad units CPM.
Instead of a conclusion
Ad revenue is the livelihood for publishers, the final saying about a website’s position on the market and its content value. The generated ad revenue marks the difference between positive and engaging user experience and just traffic of visitors.
Elaborating on optimal website monetization strategy requires scrupulous analysis and expertise. To this end, the role of the right ad tech partner is essential, as they provide the necessary leverage to enhance your website ad revenue.
Join hands with Refinery89 and take control of your ad revenue narrative.
Coming soon “How does the country of your traffic affect your website revenue?” stay tuned!
