An ad network connects publishers and advertisers. Think Google Adwords and Adsense. The idea is that publishers create content and people view that content. At the same time, advertisers are out there and want to promote products and services or ideas. A good spot to put these promotions of products and services is where there is content that may have something to do with the product.

An ad network connects these two groups in exchange for a fee. The purpose of the ad network is to make it easy for advertisers to pay publishers for space that gets their products and services viewed. In this sense, the publisher gets to monetize their content they have been creating.

A supply and demand dynamic happens and what this financial model focuses on is the supply side in terms of the number of publishers and how many impressions they are creating. Then, a percentage of total impressions that get monetized (filled) is a primary input.

Various content and types of publishers have different pricing and various revenues per 1,000 views. So, this model is driven by three primary types of publishers. Each has a configuration for the following:

  • Start Month
  • Starting Count of Publishers
  • Average Monthly Growth of Publishers
  • Average Monthly Impressions
  • Average Monthly Impression Growth of Publishers
  • Average CPM for Publisher Impressions
  • % of Available Impressions Being Filled by Advertisers
  • Average Ad Revenue Share Percentage Retained by Network (fee rev.)

Note, this doesn’t have to be an online ad network. It could be live TV, billboard space, or what have you. All of these things have different pricing levels for the amount of views and so you are given up to three configurations that can be accounted for.

Operating expenses are defined generically as well as cost of goods sold. This is structured similar to what you would see from a SaaS company, but flexible enough for a wide range of uses.

Final outputs include:

  • Monthly and Annual P&L / cash flow detail (granular)
  • Annual P&L summary (high level financial items)
  • Contributions / distribution and DCF Analysis for project / Owner / Investor

Also, there is functionality for an exit per revenue multiple and return metrics include IRR, Equity Multiple, and ROI.

Reviews Add a review
No reviews yet

More From smarthelping

Browse our top rated business templates. See All
Franchisor Licensing Financial Model
 Starting a franchisor operation can be rewarding if done right and proper financial planning is conducted. You might have a…
Recycling Financial Model
 This is a recycling financial model. The timeline can be set for up to 10 years with monthly and annual…
Pawn Shop Simulation: 5 Year Financial Model
 This model was built with specific logic in mind for operating a pawn shop. This means two main ways to…
Pitch Deck Financial Visualizations: General Template
 This template is designed to make it easy to create professional visualizations. All the charts have been done so the…
Retail Locations Ramping Model: Up to 25
 This is a general 5-year financial model with dynamic assumptions for opening up (developing or acquiring) and operating up to…
Buy a House in 5 Years: Savings Planner
 If you are trying to save up money for a home, this personal finance template should make it easier to…
See All