Revenue Calculator Toolkit for Digital Publishers
Because not everybody is a human calculator, and the business of online media requires many calculations – from CPM budget calculations to fill rates to conversions and then some – we’ve created a Media and Revenue Calculators page on our site that we invite you to bookmark, and use often. So far, we have the following calculators online:
- CPM — Ad sales folks are often required to respond to RFPs based on a specific budget, and this calculator makes it simple for them to determine how many impressions they can offer the advertiser to meet their budget. It is also handy when faced with a need to translate flat rate pricing into an eCPM, or to calculate the total cost of a campaign based on how many impressions are available.
- CPC to CPM — This is a great calculator to use when you are purchasing media that offer you an opportunity to pay-per-click or based on a CPM. Facebook, LinkedIn, Twitter and Google, for example, offer advertisers this option. While it may seem like a no-brainer to pay-per-click, it might actually end up being much more cost-effective to pay based on a CPM, depending on how your ad performs.
If you have no prior knowledge of how your ad performs with the audience you are targeting, we recommend starting out your buy as a CPC, but only for the purpose of gathering performance metrics for you ad. Once you know your click-through rate, you can plug that metric in to the CPC to CPM conversion calculator and determine what the equivalent CPM would be. You can then compare that CPM to the rate being offered by the publisher, and determine whether it is more cost-effective to continue your campaign as a CPC or change over to a CPM.
- Fill Rate — A straight-forward calculation, made simple via web calculator. For more about fill rates, see our recent post “5 Facts About Fill Rates.”
- eCPM – To complement our Fill Rate calculator, our eCPM calculator makes it easy to calculate the true value being paid for your impressions based on the fill rate.
- CPM to RPM Conversion — Ever since Google AdSense updated their reporting and publisher payment terminology, their single most misunderstood metric has been the RPM. We’ll be doing a follow-up post on Google’s RPM calculation and why we believe they use it, but in the meantime we would like to finally create an apples to apples comparison between a CPM and an RPM according to Google AdSense.
RPM simply means “Revenue per Mille,” or “Revenue per Thousand.” So, Google’s “Page RPM” is meant to represent an estimated dollar amount earned per thousand pageviews. The most common mistake people make is to compare that RPM number with a CPM. But a CPM represents a rate, not earnings. So our CPM to RPM conversion calculator determines the potential earnings per page based on a CPM rate, and translates this to an RPM. THIS is the number that you can then use to compare earnings potential with Google AdSense.
We have also created a downloadable calculator toolkit, for those who prefer to work in spreadsheets, offline.
Included in this toolkit is an ad revenue planning worksheet, where you can insert the CPM and number of impressions planned for each ad unit on a page, and automatically calculate your monthly earnings.
We hope you find these calculators useful, and do let us know if there are additional calculators we should add in the future.