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Glossary of Mobile Advertising Terms

Ad Revenue

What is Ad Revenue?

Ad Revenue is the amount of money websites or apps generate by placing advertisements. It’s calculated by multiplying eCPM (effective cost per thousand impressions) with impressions.

How can I generate Ad Revenue?

Ad revenue can have different arrangements. For example, you can make use out of Google AdSense or have a sponsorship agreement and so on. Depending on the user or company, advertising can make out the majority of the income. What kind of ads are being shown to users will also have an impact on ad revenue.

Let’s say there are two mobile apps with around 1000 downloads each. They’ll not necessarily generate the same income if the types of ads are different (of course, there are several more reasons other than the type of ads, but for now let’s focus on that). Ads like banner ads, full-screen images or mobile video ads will perform differently and you’ll need to do some research to see what will suit you best. You’ll be surprised at what kind of difference this can make.

Another thing to pay attention to is the audience. If your mobile app is targeted for teenagers you can expect to earn less per impression than if the app was targeted for more wealthy individuals like lawyers and such. This doesn’t necessarily mean you’ll earn less with the teenager app as there can be way more users of that app than the business one.