Ads On Apps Revenue: How Much Can You Earn From Advertising?

marzo 30, 2023

If you’re a mobile app developer, you might be wondering how much money you can earn from advertising on your app. With over 2.7 billion smartphone users worldwide, it’s no wonder that advertising on mobile apps is a big business.

But, how much can you actually earn from advertising on your app? In this article, we’ll take a look at ad revenue, how it’s calculated, and how much money you can expect to make.

What is ad revenue and how to calculate it?

Ad revenue is the amount of money generated by displaying ads on your app. The amount of money you earn per advertisement depends on a few factors, including the type of ad, the advertiser’s budget, and your app’s user demographics.

To calculate your ad revenue, you’ll need to know your app’s click-through rate (CTR) and effective cost per mille (eCPM). CTR is the percentage of users who click on an ad, while eCPM is the amount of money you earn per 1,000 ad impressions. Knowing these two, you can then use the following formula:

Ad revenue = (CTR x eCPM x number of ad impressions) / 1000

For example, if your app has a CTR of 2%, an eCPM of $2, and 10,000 ad impressions, your ad revenue would be:

Ad revenue = (2% x $2 x 10,000) / 1000 = $40

How does ad revenue work?

Ad revenue works by displaying ads on your app and earning money every time someone clicks on or views the ad. The amount of money you earn per ad depends on the type of ad and the advertiser’s budget. There are several types of ads, including banner ads, interstitial ads, and rewarded video ads.

Banner ads are small advertisements that appear at the top or bottom of your app. They are the most common type of ad and usually pay the lowest amount of money per click or view.

Interstitial ads are full-screen ads that appear between app screens. They are more intrusive than banner advertisements but usually pay more money per click or view.

Rewarded video ads are ads that give users a reward, such as in-app currency or extra lives, in exchange for watching a video ad. They usually pay the highest amount of money per view.

The image shows a person holding a mobile phone which is showing banner ads

Ad revenue is also affected by your app’s user demographics. Advertisers pay more money to display their ads to users who are more likely to click on or purchase their products. For example, if your app is popular among young adults who like to shop online, advertisers may pay more money to display their ads to that demographic.

Mobile game ad revenue

Mobile games are one of the most popular types of apps, and they also have the potential to earn a lot of money from advertising. They can do it by displaying them between game levels or offering rewarded video ads.

Mobile game developers can also earn revenue from in-app purchases, which allow users to purchase virtual goods or remove ads from the app. In-app purchases can be a significant source of revenue for mobile game developers, with some apps earning millions of dollars per month from in-app purchases alone.

If you are a developer, you may wanna take a look at including advertisements in your app. According to a survey by Unity, a popular game development platform, the average eCPM for mobile game ads is $7.75!

How much money do apps make per ad?

The image shows a person holding a mobile phone in one of his hands and a credit card in the other hand

The amount of money apps make per ad varies widely depending on the type of ad and the advertiser’s budget. Banner ads usually pay the least amount of money per click or view, with an average eCPM of around $1 to $2.

On the other hand, interstitial ads can pay anywhere from $2 to $10 per 1,000 impressions, while rewarded video ads can pay from $10 to $50 per 1,000 views.

However, it’s important to note that these are just averages, and the actual amount of money you can earn per ad will depend on several factors, including your app’s user demographics, the type of ad, and the advertiser’s budget.

Earn revenue from your app

If you want to earn revenue from advertising on your app, there are a few things you can do to maximize your earnings:

Choose the right ad format: Plenty of ad formats pay different amounts of money, so it’s important to choose the one that works best for your app. For example, if you have a mobile game app, rewarded video ads may be more effective than banner ads.
Target the right audience: Advertisers are willing to pay more money to display their ads to users who are more likely to click on or purchase their products. Use data analytics to identify your app’s target audience and tailor your ad campaigns to them.
Optimize your ad placement: The placement of your ads can have a big impact on their performance. Experiment with different ad placements to see which ones work best for your app.
Use mediation: Mediation is a tool that allows you to display ads from multiple ad networks, which can help you earn more revenue. Mediation platforms like AdMob and MoPub can help you maximize your ad revenue.
Consider in-app purchases: In-app purchases can be a significant source of revenue for mobile apps, especially mobile games. Consider offering users the option to purchase virtual goods or remove ads from the app.

Conclusions

Earning revenue from advertising on your app is a complex process that depends on several factors, including the type of ad, your app’s user demographics, and your ad placement.

While the amount of money you can earn per ad varies widely, there are several strategies you can use to maximize your earnings, including targeting the right audience, optimizing your ad placement, and using mediation.

If you’re a mobile app developer looking to earn revenue from advertising, it’s important to approach the process strategically and experiment with different ad formats and placements to see what works best for your app.

With the right approach, advertising on your app can be a lucrative source of revenue that can help you grow your business and reach more users. What are you waiting to gain money from your app?