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How revenue sharing works

With revenue sharingAn OpenX Ad Server feature that allows ad networks to manage and track revenue splits with the publishers they manage. enabled, for each revenue-bearing ad serving event (such as an impressionA single display of an ad on a web page, mobile app, or other delivery medium. For deals, impression is a metric to relay the total number of ads that have served. See also billable impression, forecasted impressions. on a CPMCost per mille, a pricing method which calculates cost based on the number of impressions (per 1000). line itemThe primary unit of execution for an order, which represents a specific inventory purchase and the required conditions for ad delivery.) or a click for a CPCCost per click, a pricing method which calculates cost based on the number of times a user clicks on an ad. line item, a portion of the revenue is attributed to the publisherAn account type that represents a business with ad space to sell. that owns the inventoryAd space available on a website or app. The basic unit of inventory for OpenX is an ad unit. and the remainder to the network that directly manages the publisher.

You can set revenue attribution settings at three different levels:

You can specifically designate revenue sharing models and values per site or per ad unitThe smallest inventory component that represents the space on a site where ads display..

The revenue modelThe revenue relationship or deal type established between an ad network and the publishers that they directly manage. selection for an ad unit overrides that for the container site and the revenue model selection for a site overrides that for the container account.

How RevShare works

Revenue sharing models

OpenX Ad ServerA complete digital advertising platform where publishers sell, manage, and deliver their advertising inventory across all digital formats. provides a variety of publisher revenue models, allowing you, as an ad network customer, to have more power and flexibility in how you define revenue relationships with publishers you represent. The revenue model that you select impacts how gross revenue is reflected in your inventory revenue reports.

Specifically, OpenX Ad Server supports four revenue sharing models:

The following sections describe the revenue models and provide examples for how OpenX Ad Server attributes revenue for a single day, based on the one you select. Each example assumes the following scenario:

Date 11/11/2011
Total impressions 25,000
Network Network A
Publisher Publisher X
site mysite.com
Gross network revenue $50.00

Publisher earns a percentage of revenue

This is the most traditional and, therefore the default revenue sharing model. The publisher receives a specific percentage of all revenue it generates. OpenX Ad Server attributes the rest of the revenue to the managing network.

For example: If Network A sets the revenue share percentage at 85% (85% to the publisher, 15% to the network), then OpenX Ad Server credits Publisher X with $42.50 (85%) in revenue, and Network A with $7.50 (15%) in net revenue for the day.

Date 11/11/2011
Total impressions 25,000
Network Network A
Publisher Publisher X
site mysite.com
Gross network revenue $50.00
Publisher revenue $42.50
Net network revenue $7.50

Publisher earns a fixed CPM

With this revenue model, the publisher receives a fixed CPM, and the network retains any revenue above the fixed price. If the network cannot fill a given request, then it is filled with a publisher-provided fallback ad (through a targeted House line item that the ad networkAn OpenX account type, which represents a business that manages other businesses and typically contains and manages both publisher accounts and advertiser accounts. sets up), and it is not counted as a revenue-bearing event. Since this revenue model deals with guarantees, it is possible for a network to retain negative revenue.

For example:

  • If Network A sets the fixed rate at $1.50 CPM, then OpenX Ad Server credits Publisher X with $37.50 in net revenue for the day, and credits Network A with the remainder of the revenue, $12.50.

  • However, if the fixed rate is $3.00 CPM, then in this example, OpenX Ad Server would credit Publisher X with $75.00, and Network A would actually lose $25.00 for the day.

  • Furthermore, if Network A sets the fixed rate at $1.50 CPM, and serves fallback ads for 5,000 of the 25,000 impressions, then the network is only responsible to pay the publisher for 20,000 impressions. In this case, OpenX Ad Server would credit Publisher X with $30.00 in revenue for the day, and Network A with $20.00 in net revenue for the day.

     

    If fixed rate is $1.50 CPM If fixed rate is $3.00 CPM If fixed rate is $1.50 CPM
    Date 11/11/2011 11/11/2011 11/11/2011
    Total impressions 25,000 25,000 25,000
    Payable impressions 25,000 25,000 20,000
    Network Network A Network A Network A
    Publisher Publisher X Publisher X Publisher X
    site mysite.com mysite.com mysite.com
    Gross network revenue $50.00 $50.00 $50.00
    Publisher revenue $37.50 $75.00 $30.00
    Net network revenue $12.50 -$25.00 $20.00

Publisher earns a fixed CPM with 100% fill

With this revenue model, the publisher receives a fixed CPM, and the network retains any revenue above the fixed price. The network fills all ad requests for the publisher, and all requests are counted as revenue-bearing events, even those filled by House line items, which are used to guarantee 100 percent fill. Since this revenue model deals with guarantees, it is possible for the network to retain negative revenue.

For example:

  • If Network A sets the fixed rate at $1.50 CPM, and fills 5,000 of the 25,000 impressions with House adsAds that promote the host website’s features and services. They are a way to fill unsold inventory., then the network is still responsible to pay the publisher for all 25,000 impressions. In this case, OpenX Ad Server would credit Publisher X with $37.50 in revenue for the day, and Network A with $12.50 in net revenue for the day.

  • However, if the fixed rate is $3.00 CPM, then in this example, OpenX Ad Server would credit Publisher X with $75.00, and Network A would actually lose $25.00 for the day.

 

If fixed rate is $1.50 CPM If fixed rate is $3.00 CPM
Date 11/11/2011 11/11/2011
Total impressions 25,000 25,000
Payable impressions 25,000 25,000
Network Network A Network A
Publisher Publisher X Publisher X
site mysite.com mysite.com
Gross network revenue $50.00 $50.00
Publisher revenue $37.50 $75.00
Net network revenue $12.50 -$25.00

This topic applies to Ad Server. This topic applies to Programmatic Direct.

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