If you are working on developing Android or iOS apps, sooner or later you will come to the point where you want to get the well-deserved revenue. We have already discussed various ways of monetizing an application. It can be a paid or freemium model of your product, various types of sponsorship, and, of course, in-app advertising. The latter is considered to be one of the most feasible strategies and is recommended by most mobile marketing specialists. The information below will come in handy in calculating revenue for both iOS and Android apps.
In-app advertising - the basics
Before actually explaining how an app monetizing calculator works, let us quickly go through the main features that make mobile ads a good way of making a profit. First, the whole process takes place in real-time (so-called RTB - Real-Time Bidding), where the powerful SSP in less than a second chooses the best advertiser for your product. The technology is extremely advanced and allows maximum possible targeting. This way your audience is not going to be disappointed by irrelevant content. You, on the other hand, are guaranteed to obtain the best possible marketer for your inventory (advertising space). Having said that, let’s have a look at how a simple app revenue calculator for iOS and Android works.
App Revenue Calculator - Operating Principles
The calculators provided online help you understand how much money can you expect from placing your inventory in the hands of an advertiser. The information you need to provide, no matter whether its an Android app revenue calculator or the one designed for AppStore applications, is as follows:
- number of daily active users;
- number of sessions per day;
- the average duration of a session;
- how many ads are shown per minute;
- eCPM (effective cost per mile, i.e. the cost of an ad per one thousand impressions);
- Fill rate (how many ads a shown in proportion to ad requests);
How much you spend daily on advertising.
Apart from that, you can roughly calculate your expected revenue from ads by turning to statistics. According to the data from Google AdMob, you can get as much as 0.4-1.5 USD per 1000 showing of a banner ad, and from 3 to 8 USD per 1000 displays of full-screen ads.
Obviously, the number you get in each case will only be a rough estimate of how much you can earn on the monetization of your application with the help of in-app advertising. But the information should be enough to show you the monetizing potential of your product, show you the points worth working on, and help you build a strong strategy in order to obtain desired levels of income.
