What is Ad Revenue Attribution or Ad Revenue LTV?

Ad revenue attribution is the methodology that allows marketers to allocate and measure ad revenue by the user acquisition source. In other words, ad revenue attribution connects ad revenue to the campaign that acquires the user.

What is ad revenue LTV?

Ad revenue LTV is the advertising revenue made by new users when they install an app over the entire lifetime (or x-days) of their activity. It accounts for user retention, ad impressions, and estimated revenue from all networks for a specific cohort of users.

How is ad revenue attribution calculated in Tenjin?

There are different ways to calculate ad revenue attribution. In Tenjin, we use our unique session-based (or aggregated) ad revenue attribution and LTV. Since the values are aggregated, they provide a more conservative view of ad revenue attribution, which also includes users who opted out of the advertisements.

We find that this aggregated way of calculating ad revenue attribution has become more and more useful since the onset of the privacy changes in iOS 14.5, which has greatly decreased the volume of granular data available to advertisers.

If you’re interested in exploring how Tenjin customers have used this feature successfully, have a look at this case study.

Another way of calculating ad revenue attribution is through user-level or impression-level revenue data which is available in the Advanced and Enterprise plans.

What ad revenue metrics can you get access to with Tenjin?

You can find the following ad revenue attribution metrics in Tenjin’s user-acquisition report:

• Ad revenue
• Ad Revenue LTV
• Lifetime Ad ROI
• Ad Revenue LTV / User
• N-Day Ad Revenue LTV
• N-Day Ad Revenue LTV / User

See the full list of metrics available in the Tenjin dashboard here.

What are the benefits of ad revenue attribution?

1. Ad revenue attribution helps businesses understand which channels and sources to invest in in the future

Accurate ad revenue reporting helps businesses get insight into which channels or campaigns are bringing them the most revenue (and which ones are not). This would help them optimize their ad monetization strategies, and allow them to scale profitably.

2. Ad revenue attribution helps businesses get a holistic view of their ROI and accurately predict user LTV

Ad revenue attribution is usually based on impression-level or user-level revenue data. Therefore, businesses can gain a lot of value by using this precise and granular data to predict user LTV as accurately as possible, and get a holistic view of their return on investment (ROI).

3. Ad revenue attribution helps businesses identify their ideal target audience

Since ad revenue attribution is based on user-level data, businesses not only get a sense of which campaigns are performing better, but are also able to identify high-level users for their campaigns. That information is valuable as they can use it to target this 'ideal target audience' in future campaigns in the most cost-effective way.