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Definitions

Revenue

The total revenue of a website is generally a good metric, but in many cases, it may not be accurate. For example, it can be influenced by traffic fluctuations. Let’s consider the case of a publisher who decides to add an ad unit to a web page but, after doing so, the site suffers a substantial drop in traffic, perhaps seasonal or anyway unrelated to the ad unit. This traffic variation could make the total revenue falls, even though the new ad unit could have potentially brought additional earnings. In such a case, looking at the total revenue is not the best way to measure the success of a strategyAd revenue/advertising revenue, is a specific type of revenue that is generated through advertising activities. It refers to the income earned by a company by displaying advertisements to its audience or users. Ad revenue is typically derived from advertisers who pay to have their advertisements shown to the target audience. This can include various forms of advertising, such as display ads, video ads, or in-app ads.

As a metric, ad revenue is used to measure the financial performance and success of a business, particularly in the context of generating income from advertising activities. This metric provides insights into the effectiveness of revenue-generating strategies, and its ability to attract advertisers.

In some cases, in order to properly evaluate the effectiveness of revenue-generating strategies, looking only into revenue may not be 100% accurate. Revenue typically is strongly connected with traffic fluctuations. For example, if you add a new placement to the web page, and coincidently at the same time your site suffers from a traffic loss unrelated to the new placement implementation (like seasonality, vacation period, holidays, outage), then you may see a drop in revenue, however, your new placement will bring you still an added value. In such cases, we recommend looking at the total revenue in combination with other metrics like RPM, CPM, and fill rate.

Auctions

An auction is an attempt to sell a placement and view an ad. During an an impression and get a paid ad in return. During the auction, ad calls (bid requests) are sent to Ad-Networks through various channels are issued , and the bidder that provides the highest bidder bid wins the auction and displays an ad in the placement, which is an Impression. is able to show a creative in the ad space. The process is typically executed within milliseconds to ensure a seamless user experience.

It maximizes revenue for publishers and increases competition among ad buyers. It allows publishers to access a larger pool of demand sources, driving up ad revenue and providing more control over their inventory.

If no Ad-Network is interested in participating in the competition, the auction results in an unfilled placementimpression. An auction can bundle ad calls of multiple placements.

Page Views

Page Views are the number of times a web page with at least one ad is viewed by users.

As the name suggests, this metric counts the number of pages viewed by a user. Counting page views is different from counting sessions because a user could visit multiple pages within one session. And it’s also different from counting users because the same user could view many pages. In fact, if the same user opens two different pages or even refreshes the same page, two page views will be counted.

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