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.