DSP Line Item Rates and Costs

When you set up a line item, you enter some of the Rate and Cost values, while others are calculated for you.

Values You Enter

• est net is the estimated CPM you expect to pay for 1000 impressions.

• ad serving rate is the ad serving cost you expect to pay per 1000 impressions.

• est margin or markup is the margin or markup you expect to charge, expressed as a percentage.

• gross cost is the total you will pay for all impressions and ad serving fees.

Calculated Values

• est imps shows the number of impressions you can expect to buy, given the rates and costs you've entered.

  Calculated by: est imps = 1000 *  [gross - (gross * est margin/100)] / (est net + ad serving rate)

• est gross totals the est net and ad serving rates.

  Calculated by: est gross = 1000 * gross / est imps

• net is the expected net cost for the impressions alone (without ad serving fees)

  Calculated by: net = (est net * est imps) / 1000

• ad serving cost shows the expected total cost for ad serving.

  Calculated by: ad serving cost = (ad serving rate * est imps) / 1000

• est gain gives your estimated profit for the line item.

  Calculated by: est gain = gross * est margin / 100

  Calculated by: est gain = (net media * est markup) + (markup & ad serving rate)

Example: No Margin (or Markup)

If a line item has gross costs of $1000, with no margin (or markup), estimated net rates of $4.50 CPM and $0.50 for ad serving:

• est imps = 1000 *  [gross - (gross * est margin /100)] / (est net + ad serving rate)

  = 1000 * [$1000.00 -($1000.00 * 0)] / ($4.50 + $0.50)

  = 1000 * [$1000.00 / $5.00]

  = 200,000

• est gross = 1000 * gross / est imps

  = 1000 * $1000.00 / 200,000

  = $5.00

• net = (est net * est imps) / 1000

  = $4.50 * 200,000 / 1000

  = $900.00

• ad serving = (ad serving rate * est imps) / 1000

  = ($0.50 * 200,000) /1000

  = $100.00

• est gain= gross * est margin / 100

  $1000.00 * 0 / 100

  = $0.00

Example: Margin

If a line item has gross costs of $1000, with a 25% margin, estimated net rates of $4.50 CPM and $0.50 for ad serving:

• est imps = 1000 *  [gross - (gross * est margin /100)] / (est net + ad serving rate)

  = 1000 * [$1000.00 -( $1000.00 * .25)] / ($4.50 + $0.50)

  = 1000 * [$750.00 / $5.00]

  = 150,000

• est gross = 1000 * gross / est imps

  = 1000 * $1000.00 / 150,000

  = $6.6667

• net = (est net * est imps) / 1000

  = $4.50 * 150,000 / 1000

  = $675.00

• ad serving = (ad serving rate * est imps) / 1000

  = ($0.50 * 150,000) /1000

  = $75.00

• est gain= gross * est margin / 100

  $1000.00 * 25.00 / 100

  = $250.00