One of the most frequent questions we receive from iOS Android app developers is: “How much revenue can I make from mobile advertising?” Unfortunately, this is a virtually impossible question to answer given the number of variables that determine eCPM.
Most Requested Mobile Rate,
In order to help app developers obtain a high level of understanding on what their revenue opportunity is with mobile advertising, we are providing a very simple calculator to help app developers estimate their revenue. The mobile advertising calculator is available below, or here.
Some notes on the mobile advertising calculator:We have included options for both banner and interstitial advertising.
Banner advertising is the default – simply select “Show Default Interstitial Ad Results” for interstitials
Average “Daily User Sessions” is available from your analytics service like Flurry or Apsalar – this is the single biggest driver, NOT app downloads
Average minutes per session is also available from your analytics provider – and helps to determine approximately how many mobile advertising impressions your iOS or Android app will show
Ad impressions per minute defaults to the known best practice – this is what you should be doing in your app(s).
Best CPM Android Ad Impressions,The following top paying mobile adnetworks with different types and criteria developers should know about this,
- Millennial Media.
Fill rate is an estimate,Please enter your actual fill rate from the mobile ad networks you utilize
eCPM is again an estimate,
we recommend estimating this between $.50 – $2.00 to get a good estimate
If you have any questions about the calculator or feedback, please do not hesitate to let us know.
We hope this helps!
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The Average CPM Rates for Mobile AdvertisingIt was difficult to place effective ads on old mobile phones with low resolution screens, especially when those screens were small. As a result, mobile ads were very cheap for companies that chose to try their luck there. New mobile phones have larger screens and a high resolution that makes display advertising attractive, which increases the costs for businesses looking to take advantage of the larger audiences and more advertiser-friendly formats.
CPM stands for "cost per mille," or cost per thousand impressions. Advertisers bid on online ads for mobile devices and pay more for those they consider more valuable and from which they get better responses. While advertisers pay per thousand times a mobile ad is displayed, statistics use eCPM, or effective CPM, calculated by dividing the total amount paid for ads by the total number of impressions and multiplying the result by 1000.
Mobile advertising has been increasing rapidly, both in volume and value. Over the last three months of 2012, average mobile ad rates increased by 50 percent and they retained most of the increase in January 2013. Effective CPM rates ranged from $0.53 for an Android device in October 2012 to $1.12 for an iOS device in December 2012. In January 2013, eCPM rates for Android devices remained high at $0.88 while those for iOS devices decreased from their peak to $1.08. iOS devices achieved consistently higher rates than Android devices by about 30 percent.
The tablet market is still developing and growing rapidly. Tablets are used differently than smartphones and they result in more traffic and higher ad values due to their larger screen sizes. The iPad is the leader, achieving a peak eCPM of $1.56 in December 2012 before falling back to $1.38 in January 2013. Andoid tablets showed a similar pattern over the period, with a December 2012 eCPM peak of $1.14 before falling back to $1.05 in January 2013.
Average eCPM rates for smartphones are lower than for tablets, but the iPhones achieve higher rates than the Android devices. The difference is less pronounced than for tablets, with Android phones receiving a peak eCPM of $0.91 in December 2012 before dropping back to $0.88 in January 2013. The iPhones achieve rates of $1.16 and $0.97 over the same periods.
The increase in eCPM rates for mobile ads has continued into 2013. Average mobile eCPM rates as of June 2013 are $1.31 and the split in rates between tablets and smartphones is continuing, as are the higher rates achieved by iOS devices. Mobile advertising has room to grow since its share of advertising revenue lags its share of media consumption and traffic generation.
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