Recently Setupad added a new additional section in the Client UI-Yield Formula.
We are proud to present our long-term vision fulfilled as a simple mathematical representation that shows and explains to our publishers what influences the revenue growth, where it comes from, and how to unlock the full potential of the website’s power to generate ad revenue.
Read on to know more about the yield formula and how it can help you improve your monetization strategy and grow your ad revenue in the long run.
Table of Contents
- What is the Yield Formula?
- What is Historical Projection and Target Growth Projection?
- Why is the Yield Formula Important?
- What’s next?
What is the Yield Formula?
It’s a mathematical multiplication of the most important metrics in monetization:
With the yield formula, you can calculate your revenue potential and see how each component influences overall revenue. You will also be able to see how the compound effect may affect your revenue growth exponentially. All you need to do is to achieve small incremental growth for all the key metrics in the formula.
Overall website’s revenue depends on these key metrics:
- number of users;
- loyalty (number of sessions per user);
- engagement (pages per session); and
- monetization strength (ads per page and eCPM).
If you have previously connected Google Analytics to your Setupad account, you will see all current website metrics there automatically. If not, we invite you to do it so that you can use your own website’s data for the potential yield estimation.
We, at Setupad, want to show our publishers that even though we can control only a small part of the formula directly (the eCPM part), we can still offer great support with the formula metrics we do not control directly.
Our vast experience with hundreds of publishers over the years helps us understand how to grow the other key metrics better together.
Each metric represents a different strategy, such as content distribution, content recirculation techniques, marketing, loyalty growth strategies, improvements in website design and ad load speed, etc.
What is Historical Projection and Target Growth Projection?
The historical comparison shows you 30-day historical data for your website’s ad revenue. When you change any of the toggles, it will show you the projection and the historical data.
The target growth projection shows you how in the next 6 months, you will gradually reach the set target. We’ve chosen a time frame of 6 months to reflect on the fact that magic doesn’t happen overnight; it requires a long-term step-by-step approach. But we have already proven to ourselves and our publishers that earning double or triple revenue is possible.
By moving the sliders up for any metric, like website visits, in the video example below, publishers can see how the overall revenue will be influenced in the long run. Moving more metrics up will allow us to see the more powerful compound effect on the graphs.
In the video example, in the last 30 days, the website received 53.13K users. Let’s imagine that the plan for the next 6 months is to increase the total users to 71.31K. By changing the toggle to the desired number, the publisher can see how the overall ad revenue will be influenced. In the example, the prediction shows that by growing the total number of users to 71.34K, the publisher will increase the overall ad revenue by 34% in the next 6 months.
Under the toggle, you can also see how your revenue changes when you grow each component by a certain %.
Almost the same revenue growth may be achieved by a smaller increase in all 5 metrics of the formula, for example, by 5% each. While some publishers would focus on users growth, others may apply a more diversified strategy to grow several metrics by a smaller increment to achieve a similar goal.
Below, we have attached an example where you can see that with strategy A, the publisher only grows one metric–users by 30%, thus increasing revenue by 30%. But in strategy B, the publisher decided to increase all metrics by 5% resulting in a revenue increase of 28%. Publishers can decide which strategy suits them best.
To make it easier for our clients, we have prepared customized suggestions for each of their websites to help them see which metric they could improve and how.
Why is the Yield Formula Important?
The Yield Formula helps to set clear goals for the website and shows how influential each component is to the total website’s ad revenue.
You can clearly see what you will get if you set proper, realistic goals, such as:
- increasing the number of total users;
- improving the return rate of the users or simply the loyalty;
- increasing the number of pageviews users open during a session;
- learning what the optimal ads per page should be.
Related Article: How to Increase Ad Revenue | Success Formula and Proven Solutions
We are very keen on working together with our publishers on strategies and ideas to improve their revenue in the longer run. We are ready to implement changes, run tests and employ different marketing techniques to grow our publisher websites. Essentially we are in the same boat – our success is our customers’ success.
The upcoming plans for the yield formula tool are market benchmarks – these benchmarks will give you insights into how other similar (to your site) websites are performing. And a tool that will follow the progress of the goals you set more efficiently and help you stay on track to achieve them. Stay tuned for the upcoming updates!