Model Summary
Advertising revenue is realized when users are served advertisements while using your service and connected to a network (which enables advertisements to be served). The primary drivers of Advertising revenue are Av. Session Length, Refresh Rate and Click Through Rate (CTR).
http://smallbusiness.chron.com/advertising-based-revenue-model-71672.html
| MODEL INPUTS |
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Launch
The month you plan to make this source of revenue available to customers.
Signups at Launch
The number of users that may have shown interest by signing up for your service, but have not yet converted to Monthly Active Users (MAU).
Example: If you have 5,000 signups the moment you launch your app, and you have a 10% MAU conversion rate, then you will have 500 MAU at the beginning of the first month you launch this revenue stream.
MAU Conversion (% of New Users)
The % of users, coming from your customer acquisition channels (the “Customers” page), that convert to Monthly Active Users (users that login at least once per month).
Example: If you forecast 1,000 new users per month from your customer acquisition channels, and have an MAU conversion rate of 10%, then you are adding 100 new users to your active user base (excluding churn) for the month.
DAU (% of MAU)
The % of Monthly Active Users that are logged into your service on any given day throughout the month.
Av. Session Length (Min.)
The average number of minutes Daily Active Users are logged in and engaged with your service.
Begin Advertising (# of MAU)
The level of total active users (MAU) required before you start generating revenue from advertisements.
Example: If you set “Begin Advertising (# of MAU)” to 5,000, then advertising revenue will not start until there are a minimum of 5,000 people actively using your service each month.
CPM
The revenue generated per 1,000 impressions served through your service. One impression is counted for each individual that sees an advertisement.
Refresh Rate
The average length of time it takes between each new advertisement a user sees.
Example: if a user is logged in on average for 6 minutes, and the Refresh Rate is 1 minute, then the average user will have 6 ads served to them during each session.
Network Connectivity Rate
The % of Daily Active Users logged in, and connected to a network (enables ads to be served).
Click Through Rate (CTR)
The % of total advertisements served that are clicked by a user, generating additional revenue for your service.
Price per Click
The revenue generated for each user that clicks on an advertisement.
Monthly Churn
The % of MAU that leaves your active user base and no longer uses your service.
Example: If you have 5,000 MAU at the beginning of the month, and a churn rate of 5%, then you will have 250 less MAU at the end of the month (excluding any new users you may have added during that same month).
# of Days to get Paid
The number of days between advertising revenue being generated and the day the money is available in your bank account.
http://www.investopedia.com/terms/d/dso.asp
Transaction Fees
Transaction fees as a % of total advertising revenue for this app (if none enter zero).