In this article, we have provided findings on how publishers–as opposed to direct advertisers–generates revenues from partnering with some of ad networks such as Criteo, Taboola, Outbrain, and TrafficJunky. Read below.
We used Fotocasa.es as an example for revenue comparison. Each ad network has their own unique business model.
Here’s how Outbrain pay their publishers, for example, in this case is Fotocasa.es.
According to a Financial Times interview with Outbrain’s managing director in Europe, Outbrain shares 50% or half of any revenue generated with their partner sites. The cost per click paid is said to range from $0.15 to $0.30, or let’s say a median average of $0.225, while click rates are between 0.50% to 0.75%, or a median average of 0.625%.
Using the above averages, we can come up with some revenue estimates:
$0.225 CPC x 0.625% CTR x 50% revenue share
= $0.000703 per pageview to publishers or partner sites
Or about $0.703 per thousand pageviews to publishers or partner sites
Or about $703 per million pageviews to publishers or partner sites
So, for example, Fotocasa.es receives 1,078,560 pageviews per day, then it’s estimated revenue from Outbrain would be:
$0.225 CPC x 0.625% CTR x 50% revenue share * 1,078,560 pageviews
= $758.36 per day
According to the report, in order to partner with Outbrain, your site needs to have over 10 million monthly page views.
Taboola do not disclose how much revenue shares they give to their partner sites or publishers.
However, from other experts analysis, considering their revenues, their daily recommendations, and their unique visits for advertisers, the estimated publishers CPC is at $0.35 which said to have higher than Outbrain’s. It’s CTR was estimated to be about 0.05% per recommendation, which translates into 0.20% to 0.30% per page, or a median average of 0.25%.
Using Fotocase.es figures to calculate estimated revenue would be:
$0.35 CPC in revenue x 0.25% CTR * 1,078,560 pageviews
= $943.74 per day
Criteo, on the other hand, does not pay their publisher or partner sites based on CPC and CTR, but on CPM (cost per thousand impressions). According to their website,
“Criteo pays publisher partners on a CPM basis: for every thousand impressions delivered on the partner’s website. (Revenue/Impressions) x 1000.”
Criteo helps advertisers to generate more sales through personalized performance advertising at a global scale. Criteo offers two options to their publishers. This is how it works for publishers;
You set your minimum guaranteed CPM: this is the CPM which you are prepared to sell your inventory to Criteo
For every impression you send to Criteo, we are committed to:
- either purchase this impression at your floor price: this is the minimum CPM you’ll be paid
- Or, pass this impression on, in a manner which is transparent, to your usual advertising sales agency. In this case, Criteo does not take any commission: you get 100% of the revenue which comes from your usual advertising sales agency.
Due to Criteo’s unique offering to their partners, it was revealed that publisher revenue for Criteo’s ad buys are 20-40% higher on average as compared to other ad networks.
We take a look into how one of Criteo’s publisher or partner has explained the company’s business model or how they pay their publishers.
Criteo continuously monitors the quality of the traffic of the publisher. For each impression, they dynamically calculate the price based on the user’s history. They individually value each user based on their shopping history – more engaged shoppers are worth a higher CPM. For every impression, the network purchases the impression at or above the minimum CPM that has been set by the publisher. It transparently passes this impression back to the advertising partner. This is the process of dynamic allocation of CPM. On an average, CPM for different publishers varies from USD 2.8 to 5. CPC for highly motivated traffic is in the range of USD 1.5 to 1.6. If the CTR is higher than 1%, Criteo is able to achieve more than 300% of ROI.
Criteo pays CPMs which are almost 2-3 times that of AdSense. However, the fill rate is low as it is in the range of 10-40%. The CPM can be anywhere between USD 1 to 5 for every 1000 ad impressions. The network is very suitable for blogs or websites which are focused on shopping, travel, and lifestyle. It is very useful to monetize the traffic which is generated from North America and Europe. Additional retargeting solutions are operated on a cost per thousand (CPM) or cost per engagement (CPE) basis.
We again compare Fotocasa.es revenue from Criteo, and since we do not know the impressions’ value for Fotocasa, we take into consideration the 20-40% (or a median average of 30%) higher revenue to roughly determine how much Fotocasa earn from Criteo. In here, I will use the calculated revenue from Taboola.
Fotocasa’s revenue from Criteo
= $943.74 per day * 1.30
= $1,226.86 per day
Same as Criteo, TrafficJunky also pay their partners based on CPM. TrafficJunky is a purely CPM-based digital advertising network which provides high quality digital marketing and monetization solutions to both advertisers and publishers. Accordingly, the reason behind the popularity and success of this ad network is, it works with top publishers websites and it serves over 2.2 billion ad impressions to over 141 million visitors on a daily basis.
The company pays their publishers on a 60/40 basis–60% of the revenue for Publisher and 40% share for TrafficJunky.
CPM cost reportedly depends on the impressions and which device and location were analyzed. There was no provided data on how much is the range for TrafficJunky, but we take this example from an actual user.
“For a 289 million impressions, the daily average CPM bid was $0.112.” This means that for that impression range the cost per 1000 impressions was $0.112.
While we do not have Fotocasa.es impression figures, we cannot provide the estimated revenue from TrafficJunky, however, we can conclude that it is lower than the three above ad networks based on the graph provided by Similar Pro.
- Basic Formulas in Internet Advertising
- ▷ Fotocasa : Página de mantenimiento de Fotocasa – traffic statistics
- How Much Can Publishers Make from Taboola and Outbrain?
- New Criteo Direct Bidder Delivers 20-40% Higher Publisher Revenue on Average from Criteo’s Ad Buys
- Criteo CPM Rates 2020
- Traffic Junky Review For Publishers
- How Much Does Traffic Cost on TrafficJunky? – TrafficJunky Blog
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