What is Ad Revenue?
This metric calculates the total amount of money generated from monetizing user engagement on your website.
How to calculate Ad Revenue?
Ad revenue comes in different formats. Some sites have sponsorship agreements, display banners using Google AdSense or a similar publisher display network, or work with an affiliate network. Depending on the monetization model you use, you may be able to get the value of ad revenue directly from the software you’re using, but if you’d like to get a high-level view of performance, you can use the following formula:
((#) Page Views * ($) CPM/ Pageview) / 1000 = ($) Ad Revenue
This metrics encompasses the most critical aspects of a website: traffic and monetization to get an overview of your performance and plan you strategy accordingly.
There are alternate ways to slice this pie. Some publishers focus on users and revenue per user. Revenue per user is a fine metric, but it severely blurs the line between traffic and monetization. Other publishers put the emphasis on CPM per Ad Impression as the top level metric, rather than CPM per Pageview.