earnings Archives - Atunwa Digital

eCPM: How Publishers Can Optimize Digital Revenue Streams

Chris Oguguo — Fri, 12 Apr 2024 11:10:43 +0000

In digital advertising, understanding performance metrics is crucial for content publishers and there are several metrics that publishers can track to measure the effectiveness of their campaigns. One of such metrics is the eCPM.

What is eCPM and How is it Different from CPM?

eCPM stands for effective cost per mille and is not one and the same as CPM, which stands for cost per mille. In simple terms, while CPM basically calculates how much an advertiser pays per 1,000 impressions, eCPM calculates how much a publisher earns per 1,000 impressions.

CPM is a common pricing model used in digital advertising where advertisers pay a set rate for a thousand views of their ad, regardless of clicks or other interactions.

Unlike CPM, eCPM takes into account the actual revenue generated rather than just the cost. It helps publishers gauge the effectiveness and profitability of their ad inventory.

In essence, while CPM and eCPM both involve the cost and revenue associated with ad impressions, they serve different purposes and are used by advertisers and publishers respectively in the digital advertising ecosystem.

By calculating eCPM, publishers can assess which ad placements, formats, or targeting strategies yield the highest returns. This enables them to make informed decisions to optimize their ad inventory for better monetization.

Calculating eCPM in 3 Simple Steps

Calculating eCPM typically involves three simple steps. Following these three steps will give the publisher a clear understanding of their eCPM, helping them optimize their advertising strategies and maximize revenue.

1. Measure The Ad Revenue

Publishers calculate their total ad revenue by multiplying the revenue earned per ad unit by the number of total ad units sold. For example, if the publisher sells 200 ad units at $3 per unit, this means the total revenue is $600.

2. Divide Revenue by Impressions

Assuming that the total impressions for the month is 150,000, the publisher will then divide the total revenue by the total impressions. Dividing $600 by 150,000 equals $0.004.

3. Multiply Outcome by 1,000

The revenue per impression is then multiplied by 1,000. In this example, $0.004 multiplied by 1,000 gives the publisher $4.

Factors That May Affect eCPM

There are a number of factors that may affect eCPM and how much a publisher earns from ad campaigns. Here are some of them:

Ad Format

Various types of ads make different amounts of money for publishers. For example, video ads usually make more money than regular banner ads. This means they cost more for advertisers but bring in more profit for publishers.

Ad Quality

Good ads, like creative and memorable videos with clear pictures, usually grab people’s attention more. They’re more interesting and engaging. These kinds of ads often make more money for publishers compared to basic or low-quality ones.

Ad Placement

Publishers should also think about where they put ads on their websites or apps. Ads that are easy to see often make more money. For example, placing ads at the top of a page or using pop-ups can bring in more income.

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Monetizing African Content: The Lucrative World of Display Advertising

Chris Oguguo — Thu, 13 Jul 2023 08:57:45 +0000

In August 2013, a friend of mine, Victor, bought a brand new 2012 model Toyota Camry for almost $40,000 (which was just over six million naira at the time). This surprised me for two reasons: he never once mentioned his plan to buy a car and secondly, he earned slightly less than $1,000 (150,000 naira at the time) per month where he worked and had only worked there for a year or so. Naturally, I was curious to know how he made that much money.

On the night he took me out to a bar to ‘wash’ (Nigerian slang for celebrating a new acquisition) his new car, I asked him the one question I had in mind. “It’s my blog,” he said. “What blog?” I asked, even more curious. “My website. Google Adsense has been paying me cool dollars,” he added, with a wry smile on his face as he sipped his drink.

The exact type of car Victor acquired.

I wasn’t sure of how to feel at that moment. In 2010, Victor suggested we set up a blog and write content about trending topics in Nigeria. I wasn’t particularly interested because I had a 9-5 while he was unemployed, and also, I just didn’t see what good could come out of blogging.

He soon registered a domain name and started posting content on there and that was that — or so I thought. Somewhere along the line, he got a job and I imagined the blogging thing must have failed. Anyways, he kept publishing content on the website and would often send me the links on Blackberry Messenger. At no point did I imagine his content was getting monetized.

Back at the bar, I probed further, asking how much he had made and when he started making money from his website. He didn’t tell me the exact amount he had made but said he started getting monetized somewhere around December 2011 and while it was only a few dollars here and there at first, he started making between $1,000-$4,000 (150,000-600,000 naira) monthly from 2012 and sometimes even more as the traffic to his website increased. He saved up every dime and relied on his income from his 9-5 for his day-to-day living.

An excited man showcases bundles of Naira notes.

So, what exactly did Victor do to make so much money within a short space of time with just one website?

Simple answer: display advertisements.

What is display advertising? It is a digital form of advertising that places digital advertisements on websites or mobile apps and is typically placed in strategic spaces on specific web pages. These advertisements can be in the form of static images, videos, or interactive elements like games.

Publishers who have this type of advertising on their websites or apps can monetize using any of the following models: cost per thousand impressions (CPM); cost per click (CPC); or cost per action (CPA). Display advertising also has other monetization models like revenue share and fixed fees. However, from what Victor told me, he only monetized through CPM, CPC, and CPA, so let’s focus on those three.

Cost per Thousand Impressions (CPM): Also known as cost per mille, CPM is a monetization model where the advertiser pays a specific amount for every 1,000 impressions their ads get. This means that for every 1,000 times, the ad gets seen, the advertiser pays a certain rate. It doesn’t take into account whether the audience engaged with the ad or not.

Cost per Click (CPC): In this model, the advertiser only pays when a user clicks on their ad. Unlike the CPM model, your website and app users must click on the display ad for it to count as extra dollars in your pocket.

Cost per Action (CPA): CPA only pays the publisher when their website or app user takes a specific action on the ad. The specific action is determined by the advertiser. This can be a sign-up to download something.

In Victor’s case, he was able to incorporate all three models to increase his earning potential. However, that wouldn’t have been possible without the help of the media representation company he partnered with.

One challenge that African content publishers face in their quest to monetize their content is the lack of adequate representation, which affects their earning potential and sees them leaving money on the table as African content publishers typically make 30-40% less from their content than their global counterparts.

Even in Victor’s case, he could have earned more if there was an African and Africa-focused digital content monetization platform at the time.

Since 2018, Atunwa Digital has been helping African content publishers create new revenue streams to add more value to their digital content and inventories.

Atunwa Digital’s radical customer support and transparency ensure people like you and Victor are rewarded accordingly for your creativity and hard work.

Note: Atunwa Digital does not work with Victor but his story is testament to the earning potential in the digital space. He is also a personal friend of the author.

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How Website And App Content Publishers Can Maximize Their Earning And Monetization Potential

Chris Oguguo — Wed, 14 Jun 2023 08:32:42 +0000

Twenty years ago, with limited internet penetration and the absence of smartphones, ‘website and app content publishers’ were not really a thing, as radio served as the primary source for near-real-time information in Africa. Television, on the other hand, was limited to specific news hours, offering brief coverage of major events rather than in-depth reporting. Newspaper culture, however, was still a thing, and people waited till the following day to read the in-depth news on major events.

While it was the norm then, this approach was far from optimal. Africans in the diaspora primarily relied on tidbits of news shared by friends and family back home. Due to the limited digital presence of African media outlets, they had little to no means of keeping up with real-time news from their home countries.

Today, the landscape has completely transformed. Countless African websites and apps have emerged across the internet, encompassing major news outlets as well as individual ventures. With deeper internet penetration and widespread smartphone usage, the primary challenge shifted from accessing the web to gaining visibility for one’s content. Anyone can establish a website or app and potentially reach hundreds of thousands, if not millions, of people worldwide.

However, the current hurdle lies in effectively monetizing these platforms. While digital advertising in Africa is projected to reach just over $4million this year according to statista.com, many website and app publishers still struggle to monetize their content. Those who do manage to monetize often receive only a fraction of the revenue generated by their advertising partners.

Programmatic Advertising Spend in Africa

Mac Maison — Tue, 01 Nov 2022 08:39:41 +0000

Widespread adoption of mobile phones has opened up the opportunity for programmatic advertising in Africa.

“The mobile advertising space is still in its infancy in terms of actual numbers, but it has huge potential,” said Anindya Ghose, a professor at the NYU Stern School of Business who has studied the global mobile marketplace.

Chinese companies like Xiaomi and Huawei are flooding the African market with cheap smartphones, enabling a shift from the feature phones that currently dominate, Ghose said.

“In the next couple of years, you will see penetration for smartphones shooting through the roof, and programmatic following,” he said. For now, market tracking is limited.

The table below compares programmatic advertising in Kenya, Ghana, Nigeria, South Africa

The African market is unexplored. In a few years you could have up to 700 million (African) people accessing the internet. Atunwa Digital is a full service advertising agency investing and positioning ourselves to be the go-to agency for brands and advertisers looking to penetrate the African market. We will walk you through each & every step of the process, to ensure nothing is going unnoticed. Ever reminding us to keep transparency at the forefront of our goals.

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5 Things to know before signing up with an audio streaming partner

Mac Maison — Wed, 26 Feb 2020 17:43:14 +0000

By Mac Maison

Who has your content?

It is important to know all websites and mobile apps featuring your content and confirm if any unauthorized streams exist for your content. Once the assessment is completed, you can determine which 3rd party websites and mobile apps can be allowed to feature your content and monitor to ensure all sources for your content are using audio streams you have approved and that you always have visibility into the audience analytics and you control the in-stream advertising opportunities delivered to audiences accessing your content

What are your analytics?

Understanding where in the world your audiences are accessing content from and the average time audiences spend listening to your content will help you determine the potential revenue you can generate from the audio stream(s)

Is your streaming environment stable?

It is best to have a streaming machine – ie. laptop, desktop, or streaming server – that is only used for audio streaming purposes and a consistent internet connection, with at least one back up, to ensure streaming uptime is over 95%

What services should I look for in a streaming partner?

The ideal situation is a streaming partner that provides you with: high-quality unlimited streaming with your bitrate preference, media players, analytics into stream traffic performance, programmatic advertising availability, and options to run your own advertising campaigns. It is not recommended to sign exclusivity deals – unless you are certain the terms provide you the best monetization option.

How can I guarantee transparency on earnings?

Receiving revenue reports directly from your streaming partners advertising server and having an opportunity to review your partners advertising server can help provide better insights into how much your digital inventory is worth

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