Pollen VC Launches New Online Calculator to Compare CPMS from Various Advertising Networks
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Pollen VC Launches New Online Calculator to Compare CPMS from Various Advertising Networks

By CIOReview | Wednesday, September 29, 2021

Fintech lender Pollen VC is introducing a new online calculator to compare CPMs from various advertising networks on a level playing field depending on their payment conditions.

FREMONT, CA: Fintech lender Pollen VC, a prominent provider of revolving credit facilities to the app and game developers, is introducing a new online calculator to compare CPMs (cost per thousand impressions of an advert) from various advertising networks on a level playing field depending on their payment conditions.

The payment conditions for mobile ad networks are immensely different, with a maximum of the networks providing terms between Net 15 and Net 60 days. In other words, based on the web, app, and game, publishers get payment between 15 and 60 days from the end of the month when the impression was provided.

Publishers are highly concentrated on accomplishing the highest CPMs for their ad inventory but continuously ignore the financial influence on their business created by the lengthy and non-standard payment method. Particularly the possibility cost of not being able to reinvest proceeds from ad revenue into more user acquisition. It can lead to money being left on the table for publishers and neglected revenues for advertising networks.

Martin Macmillan, CEO and Founder at Pollen VC, commented, “Real time app bidding is a big step forward for the mobile app industry. The mobile ads market is evolving from one historically plagued by lack of transparency and manual operational overhead, to a new world order which moves towards a real-time bidding auction for ad impressions which squeezes out many of the inefficiencies out of the previous model. But as the bidding model continues to evolve, savvy media buyers and ad monetization managers need to better understand their underlying financial dynamics, and how they can better optimize their growth opportunities. Many publishers are leaving money on the table by not taking the time to understand these underlying financial dynamics.”

The actual days until payment must be taken into account in order to evaluate ad CPMs on a level playing field. This is accomplished by using a discount factor based on the number of days until funds are received and the cost of capital. The discounted CPM, or dCPM, is the current value of the company, assuming the company had to pay to borrow the money until the ad networks eventually paid out.

Martin Macmillan added, “The dCPM calculator will allow publishers to compare ad networks on a level playing field and look beyond just the headline CPM, applying some financial discipline to look more rigorously at the true CPMs generated at a financial level. The most important factor to consider is the opportunity cost to the publishers. It may only be a few cents difference in headline CPM but could make a huge difference to the publisher who is keep waiting before reinvesting back into more user acquisition or traffic to their website.”