Advertising revenue is a crucial KPI to track to know the monetization value of your ad networks and online advertising campaigns.


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What is ad revenue?

Advertising revenue is the monetary income you earn from displaying paid ads on websites, social media, search engines, or other apps or digital advertising platforms.

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How to calculate ad revenue?

It all depends on the type of digital ad you use; CPM, CPC, video ads, etc. But as a rule of thumb, you want to take the value of the conversions from all your ad formats and calculate Total Ad Revenue by multiplying the number of conversion from ads by the conversion value.

The advertising revenue calculation:

Number of conversion from ads X Conversion value = Ad revenue

What is a good ad revenue?

A good ad revenue is dependent on your ad spend, if your display ad for example cost $2000 and you got $1500 in ad revenue, it’s obviously quite bad. However if you’ve got the same ad revenue but for a $500 ad spend, that’s way better. The rule of thumb for marketing ROI is typically a 5:1 ratio, 10:1 being amazing, but anything below 2:1 ratio is not profitable.

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What is a bad ad revenue?

As stated above, if the total revenue from your ads is lower or equal to your ad spend, it’s a very bad ad revenue (it’s not even a revenue). Anything below 2:1 is not profitable since you also invested time and money into thinking about these ad campaigns and putting them in place.

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Ad revenue KPI examples & templates

Add your advertising revenue to these reports for a good view of all your online marketing metrics and overall online performance.

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Ecommerce report template Ecommerce report template

A report with all the most important metrics for your ecommerce site, like shopping cart abandonment, click-through rate, native ad costs, and revenue.

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Executive report template Executive report template

This template is filled with business metrics perfect for small business owners and bigger companies executives. Showcase your revenue, new customers, churn rate, and more.

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PPC report template PPC report template

Check your metrics from all your marketing channels and social media platforms from instagram ads, Facebook advertising, google search ads, influencer marketing, or Linkedin ads. Track all your metrics; ad impressions, pricing metrics, mobile app advertising metrics, online video ads from YouTube, and more.

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Ad revenue best practices

Here are some of the best practices you should keep in mind to improve your advertising revenue.

Ad revenue best practices

step 1 icon Optimize your landing pages

To make sure your new traffic converts, you must make sure your landing pages have a good user experience, great CTAs and convincing points. You can do A/B testing and provide lead generation initiatives on the page, even a FAQ section.

step 2 icon Optimize ads

You can optimize your google ads by bids; ROAS and CPA use automated bidding that controls your spending by adjusting your bids as needed. Google can also optimize the size of your ad units to automatically fit desktop or mobile, meaning there's more chance they'll be seen and clicked. Whether you use alphabet (google) amazon, google adsense, or other providers for your ads, there’s ad optimization available.

step 3 icon Diversify your ads formats

There are multiple types of ads and partnerships you can use, from influencer marketing to live streams, interstitials, display ads, and more. You can use rewarded video ads to generate the most engagement, or put digital ads on apps your target audience uses.

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