Advertising (ad) revenue: What is ad revenue and how does it work?
What is ad revenue?
Ad revenue = impressions * eCPM
How does ad revenue work?
App developers rely on several app metrics to measure their ad revenue, including ARPDAU, ARPU, and ARPPU. In addition to these indicators, app developers use reporting tools to distinguish between mobile video ad revenue and rewarded video ad revenue app monetization decisions.
To increase app ad revenue, app developers must put together a sturdy ad monetization strategy. The key to boosting ad revenue is placing high-performing ad units, such as rewarded video ads and playable ads, at high-converting points in the app flow.
Mobile game ad revenue
Mobile game ad revenue refers to the earnings generated from in-game advertisements such as rewarded ads, offerwalls, interstitials, and playable ads rather than in-app purchases as part of an app’s monetization strategy. The gaming ad revenue is calculated by multiplying the number of impressions an ad has in an advertising platform times the eCPM. Overall, mobile game advertising revenue has proven to be very worthwhile as mobile games are well on their way to make $39.8 billion in ad revenue alone.
How much money do apps make per ad?
The amount of money apps make per ad depend on both the genre of the app and the ad unit. For rewarded video ads, the average revenue per impression in the US is $0.02. The average revenue per completion is $0.16 for interstitials and $2.50 for offerwall. In terms of genre, casino games and action games tend to bring in the most per rewarded video ad while hyper-casual games and casual games tends to bring in the least.