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Ad revenue

What is ad revenue?

Advertising revenue is the earnings that digital domains like apps or websites make from in-app advertising or showing paid adverts to their audience.

Calculating ad revenue

Ad revenue can be calculated using the following formula:

Ad revenue = Impressions X eCPM

An impression is counted when an app or website user sees an advertisement on the page.
eCPM or effective cost per thousand impressions (mille), is the revenue publishers generate for every thousand ad impressions.

Increasing ad revenue

Below are some tips to increase ad revenue.

Improve user experience: The user experience of your app or website decides whether the user stays or leaves. Thus, better UX means better ad revenue.
A/B test ads: Identify the kinds of ads that resonate with your users by A/B testing multiple formats and placements. The more the users engage with your ads, the higher the ad revenue.
Track ad performance: Data is everything. Track and analyze the performance of ads to determine how users react to them. This enables you to make data-backed decisions towards improving ad performance and, in turn, revenue.
Develop a strategy: Curate an ad revenue strategy by identifying and analyzing the metrics that matter. Follow the strategy at all times to improve ad revenue.

Related Terms

A/B Testing

A/B testing, also known as split testing, is a method used to compare two versions of a webpage or app to discern the one that performs optimally. By presenting variants A and B to different audience segments, marketers can analyze the results, paving the way for data-driven decisions, content refinement, and the optimization of digital assets.

eCPM

eCPM or effective cost per thousand impressions (mille), is the revenue publishers generate for every thousand ad impressions. The higher the eCPM, the better the revenue.

In-app advertising

In-app advertising is a popular method to earn money through apps. If a mobile app or game supports in-app advertising, it means it incorporates paid ads into the app. The app publisher gets paid every time users see or engage with the ad.

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