Revenue Optimization

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Revenue Optimization

Which Ad Revenue Metrics should Publishers track?

An important aspect of ad revenue optimisation is the knowledge of how to measure ad performance.

The more knowledge you have on measuring ad performance, the more control you have on the ad campaign and website revenue.

Learn more about ad revenue metrics in this article:

What are ad revenue metrics?

Ad Revenue metric is a digital marketing metric which measures the total amount of money generated from ads displayed on your website.

These ad revenue metrics can help the publishers with aspects of the ad to be worked on to get higher conversion rates and greater traffic, ultimately leading to passive monetisation of the website.

However, with the dynamic world of ad tech and the rapid emergence of new tools of ad tracking, publishers, especially the new ones, usually face difficulty in which ad revenue metrics to measure for improving the CTRs and CPCs.

The description below gives insight into which ad revenue metrics to track in 2022, their importance, and how to calculate them.

Why are ad metrics important for publishers?

 As mentioned earlier, the central aim of digital advertising is the website’s growth concerning money, brand name, and conversion rates.

Thus, a clear perception of which ad campaign should be supplemented with a particular ad metric is imperative to achieve this goal. Following is how ad revenue metrics help the publishers:

  • Ad revenue metrics are essential for publishers to track to dispose of the higher costing ads and help design creative and compelling ads, immediately calling for action. In addition, these metrics narrow down the parts which need immediate attention.

  • Ad revenue metrics help in preplanning by analysing the stats. In addition, publishers can establish a benchmark to accomplish by optimising the ad campaigns.

  • Lastly, tracking ad revenue metrics can help achieve the end game of any website, ROIs. by crafting compelling and high-converting ads, publishers not only get in-depth knowledge about consumer behaviour but also manage to improvise the ads as per consumer demands.

In this article, publishers can learn about the latest ad revenue metrics along with ways to calculate them.


Read more:

How to Increase Your Ad Revenue With Programmatic Private Exchanges

How AMP Ads are Boosting Ad Revenue for Publishers

Effective ad revenue metrics to be tracked by the publishers in 2022

Total Site Traffic:

Total site traffic is an important ad revenue metric that amalgamates traffic or visitors from various sources, be it a first party, second party or third party user. It can include:

  • Visitors landing on the website by clicking on the links from other websites are called referrals.
  • Visitors from the social media platforms such as Instagram, Facebook, etc.
  • Organic visitors who visit the page through searches, clicking on the website, untagged as “ad”.
  • Other visitors from emails.
  • Visitors registered after clicking on ads on the top or bottom of the other pages.

Significance:

This particular ad revenue metric gives an insight into the total of visitors driven to the website.

Implication:

Higher total site traffic implies better user engagement and ad reach.

Revenue Per Customer

As the name suggests, revenue per customer refers to the contribution per user to the website. Enhancing revenue generated by each customer leads to an overall profit earned by the website.

How is it measured?

Revenue per visitor Total monthly ad revenue / # of monthly unique visitors

Implication:

For instance, if the monthly revenue is 1000$ with 75 unique visitors, then the revenue generated from each visitor will be approximately 13.33$. This implies the users are engaging with content provided on the website.

 Point to be noted:

Low-quality content will automatically lead to less user engagement, resulting in low revenue contribution per visitor despite large traffic and vice versa.

Revenue Per Page:

Revenue per page is the gains acquired from the website’s particular page.

How is it calculated?

Total revenue across your site ✖ per cent of total views a given page acquired in the same time frame. 

Sr. no.Monthly page views% monthly page viewsMonthly revenue
Pg. 150060%450$
Pg. 210010%200$
Pg. 340030%350$
TOTAL1000100%1000$

Implication:

Particular page acquiring higher revenue indicates the users’ interest in that particular page, providing knowledge about the users’ behaviour and what kind of ads are well received by them. This provides publishers with the opportunity to improve more.

Revenue Per Audience Segment:

Synonymous to previous ad revenue metric, it tracks the various sections in which the users are divided. It can be according to age group, interest, geography and content-wise.

How is it calculated?

Total revenue ✖ per cent of monthly pageviews by a particular segment of visitors.

Implication:

This particular ad revenue metric is tracked to understand which group of audience accounts for more traffic and which users engage with the content to bring in more revenue and improve ad impressions.

  • Pages per visitor:

Publishers track this ad revenue metric to understand users’ intent to jump to the next page. It describes the number of pages a visitor visits on the website. This metric is tracked by using any suitable software available online.

  • Bounce rate:

Bounce rate is the percentage of visitors browsing the website without performing the action and leaving. This ad revenue is important to track to understand why users discontinued browsing.

How is it calculated?

As per Google: single-page sessions are ➗  all sessions.

Implication:

A high bounce is a sign of the website’s low quality or content not per the user’s intent. It also implies that the website might be too complicated for users to operate.

How to improve?

  • By optimising the keyword
  • By providing a user-friendly interface
  • Reducing distracting or irrelevant ads
  • Speeding up page loading time

TO BE CONSIDERED:

It is to be noted that both bounce rate and pages per visitors ad revenue metrics fail to track the actual engagement of the user with website.

  • Time on Page:

One of the supreme ad revenue metrics is time. Measuring the time spent by the visitors on the website is important for publishers as it tells what content users usually engage with and how long it takes for users to take action. It also provides a peep into which content to improve on.

Time on the page can be calculated using Google Analytics combined with Google Tag Manager.

  • User Feedback:

Users are the assets, and their comments and experiences with the website should not be neglected.

Leaving a window open for comments or feedback and working on those feedback accounts for a great user experience, resulting in better website performance. Publishers build their websites, circling the responses from their valuable users. 


Read more:

How to Balance Ad Revenue and User Experience

3 Considerations for Publishers to Get the Best Out of Falling Ad Revenue

Final thoughts:

Ad revenue metrics are deployed to facilitate overall consumer experience and, in turn, enhance the website’s growth with boosted returns on investments, higher conversion rates, increased impressions and better website recognition.

It’s important to note that ad campaigns run by the publishers assure the users of quality content, followed by more user engagement. Overwhelming the visitor with ample redundant content can defeat the point of using ad revenue metrics.

For every publisher, it is crucial to keep the user at the top pedestal by catering to his needs and behaviours. 

Publishers usually partner up with various ad techs on publishers’ behalf. You can register Adpushup to avail its top-notch services that keep in check the overall performance of websites and provide the ultimate user experience to the consumers along with boosting the profits earned.


Read more:

How to Recover Ad Revenue Lost to Ad Blocking (+ New Viewability Metrics)

Increase Ad Revenue from Website: 6 Simple Tips

FAQs

Which metric is best to calculate ad performance?

The best ad revenue metric to track ad performance is CTR (click-through rate). It measures the number of visitors who clicked on the advertisement, providing information on how alluring the ad design and copy are.

Which ad revenue metric be best utilised for measuring profits?

ROAS (returns on ad spend) is the key performance indicator that calculates the revenue earned on every dollar spent per ad campaign.


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