A Full-Proof 5 Step Guide on How to Maximize Your App’s eCPM
Table of Contents:
- What is eCPM?
- What is a good eCPM?
- Why is eCPM important for app publishers?
- 5 Proven ways to maximize your app's eCPM
- eCPM - Hit or Miss?
As an app publisher, if you plan to sell your app, you need to care about eCPM and how it can affect your ad revenue. Publishers can sell their impressions directly or programmatically. Advertisers can pre-negotiate and sell their CPM/CPC/CPA when direct deals occur.
When programmatic deals are made, publishers make their impressions available to multiple partners with the help of Ad Exchanges or SSPs. But, whatever the method of selling ad space, publishers need to look into eCPM and learn to increase their ad revenue.
Before we jump into 'how to increase eCPM' here are some basics to get started:
1) What is eCPM?
eCPM or effective Cost Per Mille is the ad revenue generated per 1000 impressions. The term 'Mille' is a Latin word meaning one thousand, while the 'effective' word indicates the actual value rather than the projected one. You can easily calculate the ad value generated by specific ad units with the help of eCPM calculators.
The higher the eCPM, the more profit an app publisher makes.
App publishers can use the following formula when wondering how to calculate eCPM:
eCPM = (Total earnings/Total impressions) X 1000
You can also use this formula:
eCPM = (click through rate X conversion rate X revenue per conversion) X 1000
Based on this formula, you can optimize the following values:
Click-through rate: The most straight forward metric to optimize as you can control sections like ad placement, ad timing, and ad formats.
Conversion rates: Applicable to those publishers who opt for CPI (Cost Per Install) or CPA (Cost Per Action).
Revenue Per Conversion: Your revenue will increase when you increase the amount for paid-per-click or conversions.
2) What is a good eCPM?
eCPM rates depend on multiple factors, such as the location of ads, traffic geography, site speed, seasonality, and others. Generally, eCPM rates average between $1.5-$10. So, if your eCPM crosses $6, it can be considered a good eCPM.
3) Why is eCPM important for app publishers?
Calculating eCPM is essential for app publishers because it depicts the actual revenue generated based on the ads running on your app. It also helps you make educated decisions on the ad units you want to run/create in the future.
Let's understand this with a simple example:
If an Ad Exchanger pays you $10 for 1000 impressions for a 300X250 ad unit and $4 for 1000 impressions for a 250X250 ad unit, then you cannot compare them directly. But if you calculate the eCPM for both, you find that the former will earn you $10 while the second option will make you only $4.25. You can create ad units based on this.
4) 5 Proven ways to maximize your app's eCPM:
If you are looking at 'how to increase eCPM and increase your profits, here are some proven ways:
Experimenting with Ad Networks:
Ad networks are aggregators of demand and supply. It helps ensure that your relevant ads are shown to the right users.
How can this be done?
Partnering with the right ad networks can help. Various ad network options in the market have unique capabilities and can offer you multiple solutions. For example, vertical ad networks will help you with a niche website. At the same time, inventory-specific ad networks provide unique solutions for specific ad inventory. So, it would help if you choose the right ad network wisely based on your requirements.
Partnering with Ad Mediation Agencies/SSPs:
Ad networks generally unite publishers and advertisers while allocating the ads based on their capabilities. But, SSPs can help you overcome the limitations of ad networking. How can it be so?
An SSP brand connects publishers with various Ad Exchanges and Ad Networks. SSPs work with multiple demand sources (Ad Networks, Ad Exchanges, DSPs, etc.). But this opens inventories to more bidders and increases eCPM.
Other than this, SSPs can help optimize your ad stacks, improve demands, and deliver better user experiences. Partnering with the right SSPs will help influence your revenue directly.
Trying multiple Ad formats:
As an app publisher, you must find the best way to get your ads out to your target audience. Trying multiple ad formats can help increase your eCPM. Some ad format options are:
Banners - Rectangular or square-shaped ads that appear on websites. So, choose one with the highest fill rate and lowest chances of getting affected by fraud.
Interstitial - These ad formats have some of the best eCPM rates. Also called 'full page ads,' occupy a user's complete device screen. But remember to follow your ad-tech partners' guidelines and keep your users' experience in mind.
Videos - These are both intended and compulsory ads considered the best options these days.
Generating Search Engine Traffic:
When you have many visitors, you have a better opportunity to showcase your ads to them. This means that you get more ad impressions, more CTRs, and a higher profit.
But not all traffic sources increase your eCPM. It is mostly Search Engine Traffic that helps increase eCPMs. Why?
Because SEO drives traffic organically, users have searched for your app (or keywords related to your app) and have clicked on it themselves. There was no push involved from your side. In this case, users will stay on your app for a longer time and are more likely to interact with the ads.
On the other hand, using social media can help make your content go viral. This offers thousands of unique visitors to your website in a short time frame that increases your eCPM. Therefore, if you create valuable content, you can leverage it on these social media platforms to drive traffic organically to your app.
Keeping up with Industry standards:
We know that when the demand for a specific format increases, then there is a change in the users' behavior. To keep yourself relevant, you need to start tracking industry average eCPM for different formats.
One of the best examples of this is video ads. You can see how video ads have increased in just the last few years. So, if it has been in your ad list, you know that video ads work best for your users and try to bag higher eCPMs.
5) eCPM - Hit or Miss?
As app publishers, getting the perfect eCPM rate is impossible as soon as you start your ads. You need to test several aspects - ad networks, placement, formats, and try various traffic-driving techniques to see which brings you the best rate.
But, this is time-consuming and might make you lose sleep. Rather than spending time to figure all these out while planning your next big app, why not sell your apps on KalaGato?
We provide quick and easy app selling within just 30 days. When you send a query, our experts will connect with you within 72 hours and help you understand the entire process involved. App evaluations are done, and within 2 weeks, you will get an offer. It will only take you around 30 days to complete the entire process. So, trust the experts, trust KalaGato!
1. What do you mean by high eCPM?
When an app developer has a high eCPM, the ads they have served on their app are working and converting users. So, the more users convert using ads, the more the app publisher makes.
2. Why is eCPM important?
eCPM is important because it is tied to revenue generation. They can help predict profit levels (a higher eCPM means more profits). Also, by setting specific goals to achieve in eCPM, app publishers remain motivated to test out more ad formats and find the best-performing ads.
3. Are eCPM and RPM the same?
eCPM is the estimated revenue an app publisher generates per 1000 impressions, whereas an RPM is the amount a publisher earns per thousand pageviews.
4. Are CPM and eCPM different?
CPM is calculation advertisers use to check the costs of 1000 ad impressions, whereas eCPM is used by app publishers to understand how much revenue was earned per 1000 ad impressions.
5. Which country has the highest eCPM?
As of June 2022, the United States had the highest eCPM for in-app banner ads for Android apps - reaching 0.61 US dollars.
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