Ad Revenue

Definition of Ad Revenue

The income generated from displaying advertisements.

Explanation of Ad Revenue

Ad revenue refers to the income generated from displaying advertisements on a digital platform, website, app, or other media. It is a primary source of income for many online businesses, publishers, and content creators. For example, a news website might earn ad revenue by displaying banner ads, video ads, or sponsored content from advertisers. Ad revenue is typically calculated based on metrics such as cost per thousand impressions (CPM), cost per click (CPC), or cost per action (CPA). The amount of ad revenue depends on factors like traffic volume, ad engagement, and the quality of the audience. By optimizing their ad inventory and improving user engagement, publishers can maximize their ad revenue. Effective ad management, targeted advertising, and leveraging multiple ad networks can also help increase ad revenue. Understanding and analyzing ad revenue is crucial for sustaining and growing a digital business.

This dictionary entry was written by

Per-Gulbrand Peter Braathen

With a foundation in doctoral-level research, Per-Gulbrand Peter Braathen is a seasoned expert in the areas of marketing, branding and communication. His proficiency extends to marketing management, branding and communication strategy. Braathen's experience is underscored by his rich background from various industries, including entertainment. A distinguished alumnus of the USC Marshall School of Business, Braathen boasts a Master of Science in Marketing, complemented by a Graduate Certificate in the Business of Entertainment from the USC School of Cinematic Arts as well as two undergraduate Bachelor degrees from the esteemed University of Southern California.