How Does App Ad Revenue Calculator Work, and Why Do You Need One?

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Internet marketing has gained crucial importance for all businesses, irrespective of size. Companies spend huge sums on advertising on different platforms like Google AdSense. While Google takes a large part of advertisement revenue, the remaining part goes to website and app owners who place the paid ads on their pages.

Ad revenue refers to monetary income that businesses and individuals can earn from display paid advertisements on your social media channels, app, website, and other platforms. An app ad revenue calculator is a valuable tool to estimate your ad income based on app traffic. Here is some essential information on how the ad revenue calculator works.

The Important Elements

Current Ad Setup

The ad revenue calculator needs some inputs to give you an estimate of ad earnings. You have to select your current ad setup from the drop-down list.  The options are

  • Using AdSense/Adx
  • 3+ Demand Partners
  • Others

Average Views Per Month

The calculator requires you to select average views per month. By default, the slider is positioned at 500,000. Depending on your data, you can move the slider to the right or left to match your website’s average views per month.

Average CPM

CPM stands for Costs Per Impressions. It is an important metric used in traffic and number of clicks analysis. CPM is generally considered as cost per 1000 impressions. Advertisers generally set the desired price per 1000 ads.  You will have to pay every time your ad appears on their network.

As a publisher, you will earn every time a paid ad is served on your page and viewed by the user.  To get estimated ad revenue, you need to select Average CPM in USD. The maximum CPM you can select is 10 USD.

Ad Units Per Page

Ad has different dimensions and some popular options are 580×400, 750×200, 300×1050, 300×600 or any custom size ad format. If the ad is big, you will not display more than one ad unit on a page. You need to select the ad units per page on your app or website to estimate ad revenue.

Get In-Depth Analysis

When you enter the required information and click on in-depth analysis, the app ad revenue calculator will show the projected ad revenue for the next two years. The analysis also presents you with a possible increase in ad revenue by hiring experts in ad technology.

What Do These Results Mean For You?

The calculator’s revenue estimates are a general guide, and your app could be more effective in delivering ads. Some ad revenue calculators do not consider the app’s OS platform, which is also a crucial element in determining the estimated revenue.

The average CPM for different networks varies, and you need to consider that. Some of the popular mobile advertising networks are Chartboost, Inmobi, AdColony, and Admob, to name a few.

Localization and Data Monetization

For accurate revenue estimates, the revenue calculator considers data monetization, which is based on the location of users in the world. The localization monetization depends on how many users opt-in for location permissions while installing or using the app.

Location monetization is an essential aspect of ad revenue for different reasons. For apps with large audiences, location monetization can be used to boost ad revenue. Whenever a user interacts with your app, they generate data that can be analyzed or quantified. The data provide insights into customer behavior, and the information can be used to determine how to deliver personalized content or advertisement for maximum impact and revenue generation.

If your users are located across the world, the average CPM for every country would be different as you also need to pay your app partners.

Why Do You Need an App Advertisement Revenue Calculator?

An app advertisement revenue calculator allows you to evaluate the website traffic and traffic from different sources. It also helps you know how much traffic you need to reach a specific income.  With the ad revenue calculator, you can calculate how much you will earn for a specific amount of traffic. The information gathered from the app can help you determine strategies to increase app traffic to reach your goals.

If you have implemented specific SEO strategies to attract traffic and your ad income depends on the number of clicks, you need to hold the user’s attention and guide them to your website. The calculator gives you a clear picture of how your strategies are working.

To sum up, the ad revenue calculator presents you with essential information about the website traffic and the ad revenue you can earn from it.  It removes any speculation and gives you tools to know how much more efforts need to be put in to achieve your revenue goals.

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