6.5.3.4 Revenue Distribution

Revenue sharing / Revenue distribution is carried out in ADvendio through the Distribution Accounting Record Creation Process. Revenue is distributed when revenue distribution is enabled on revenue Ad Spec. The amount of Delivery Data or amount based on Linear Distribution presented determines how much of the collected revenue and costs will be distributed across the relevant sites. Any excess revenue which cannot be distributed can be created as a deferral record. Any delivery which cannot be distributed can be created as an accrual (see examples below).

Revenue can be distributed monthly when invoiced revenue exists and Ad Spec is enabled for distribution. Once an item has completed its runtime, the Distribution process will also carry out an adjustment to ensure that the distributed amount is proportionate to the overall distribution of the item (see examples below).

Setup

To carry out your revenue and cost distribution you need to:

1. Create your Distribution Accounting Rules. There are different approaches to distributing revenue:

• Based on Site-based Delivery Data

• Enhanced Delivery Data of Sites & Video Groups

• Linearly distributed on Delivery Data

• Linearly distributed on Amount

To create your records on Site based Delivery Data, create your rules with the relevant Advertising Medium/Site as Matching criteria

Open

• To create your records on Enhanced Delivery Data of Sites & Video Groups, create your rules with the relevant AdServer IDs as Matching criteria
  AdServer ID - Site
  Secondary AdServer ID - Video Groups

Open

2. Identify which Ad Specs are relevant for Distribution and activate the Enable Distribution for Accounting checkbox.

3. If you want to use Enhanced Delivery Data, ensure the correct Accounting Delivery Data Breakdown Type is set on your Campaign Item. Currently, only ‘Sites and Video Groups’ is a supported option.

4. To distribute based on Delivery Data, there should be an existing connection and a Delivery Data field. For non-CPM, CPC, CPM, and CPCV 'Accounting Distribution Quantity Type’ field should be chosen. 'Accounting Distribution Quantity Type' can be selected at the Ad Spec level.

5. Ensure delivery data imports are scheduled for Delivery Data and Enhanced Delivery Data.

6. Ensure you have revenue and costs distributed (invoiced invoices for the relevant Line Items).

Distribution Process

When the Distribution process is started from the Legal Entity, the revenue and costs from the Invoices will be distributed according to the last full month of delivery. Revenue will be distributed across the sites or sites & video groups in proportion to how much has been delivered or linearly distributed if no connection exists. Where an item over or under-delivers overall, an adjustment may need to take place to ensure the total amounts distributed remain proportionate.

Distribution Example :

Campaign Item with 100,000 quantity (CPM) sales price of 27 Euro and a runtime of 01.01-28.02.

Under-Delivery

With the following Delivery across four sites over two months:

You would see the following Distribution Records created on a month-to-month basis:

Over-Delivery

With the following Delivery across four sites over four months:

You would see the following Distribution Records created on a month-to-month basis:

* This is a minus adjustment record which redistributes some revenue from Site 2 to other sites.

Distribution and cancellations

If Invoice or Campaign Items are cancelled where revenue/costs have already been distributed, then cancellation distribution records will be created on the next distribution process, once the cancellation invoices have been invoiced.

If Invoices or Campaign Items are cancelled where revenue/costs have not yet been distributed, no records will be created on the next run.