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.
Contents
What is ad revenue?
Calculating ad revenue
Increasing ad revenue
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