If you are an app developer looking for ways to monetize your apps, then you must have come across the term “ad mediation” at some point of time. Mobile ad mediation is an app monetization solution, that helps developers setup, manage, and optimize multiple mobile ad networks with just one Software Development Kit (SDK) integration. Wondering why you need this? Let us tell you:
- Increases your ad revenue
- Your fill rate is high
- Requires just 1 SDK, which neither slows down your app nor affects its performance
- Automated optimization feature
- Saves time, resources, and efforts
Seems interesting, right? Well, mobile video advertising is a good way to turn your mobile apps into a real, sustainable business. But how will you know if mobile ad mediation is really working for you? You can measure the performance of your app and the ads through various monetization metrics. Here are some:
Average Revenue Per Daily Active User (ARPDAU) is a metric that helps you identify how much money you are making from a user in a single day. And as they say, “the more, the merrier”; higher the ARPDAU is, better the ads or ad networks are performing. This is one of the best ways to know if your app’s ad strategy is correct, and how much of it you need to optimize to make it even better. Consider integrating rewarded video ads in your mobile games as it can raise the app revenue by 20 to 40%.
The revenue from ads on any given day, divided by the number of unique active users on that day gives you the ARPDAU.
The lowest ARPDAU, for apps with only banner ads, in tier 1 countries is $0.005. Some reports suggest that the same can go up to $0.09 with rewarded video. The highest ARPDAU reported is $1 for DeNA’s Rage Of Bahamut, a hardcore strategy game.
Another metric to measure the performance of in-app video ads is effective Cost Per Mille, eCPM. In other words, eCPM is the ad revenue generated per 1,000 ad impressions. A high eCPM indicates that the ads on your app are performing well and you are likely to make more money.
To get your apps’ eCPM, just divide your total earnings by total impressions and multiply it by 1,000.
This is the total earnings from ads on a given day. It is the easiest way to evaluate the performance of the ad networks, as daily revenue metric shows the performance of your ads and the income they are generating.
Lifetime value of your customer:
Lifetime Value (LTV) is your revenue assessment metric that defines the financial value of your app’s customer. Simply put, it is the total calculated profit that a customer will provide you in their lifetime. LTV is calculated by assessing monetization (in-app advertising), retention and virality. The higher the LTV is, the higher your overall revenue will be.
The lowest LTV reported in tier 1 countries is $0.1 and the highest is $1.5.
The number of ads served by an ad network compared to the number of ads you have requested is known as fill rate. A low fill rate denotes that you are not getting the most of your ad inventory. Mobile ad mediation platform helps you maximize fill rate by connecting you with multiple ad networks, one of
which can serve you the ad you have requested. A high fill rate is an indication that mobile ad mediation is working for you.
You must keep track of these measurements to understand if ad mediation is really working for you. While Chocolate Platform can help you monetize your app, you should know how you can measure its success yourself.