Glossary

Ad Revenue

Ad revenue

What is ad revenue?

Ad revenue is the money apps generate from in-app advertising. App ad revenue is calculated by multiplying ad impressions by eCPM.

Ad revenue = impressions * eCPM

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.

What is 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.

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