Ad Monetization / Ad Revenue
  • 02 Mar 2023
  • 2 Minutes to read
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Ad Monetization / Ad Revenue

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Article summary

What is Ad Monetization?

Ad Monetization refers to the revenue generated from displaying advertisements within your mobile app. In order to be profitable, many mobile app advertisers try to maximize their ad monetization revenue from different sources or ad networks. To do this, the first step is for advertisers to get a clear picture of their mobile apps’ ad-based revenue sources, so that they can re-invest their ad revenue with confidence and fuel growth by driving installs.

How does Tenjin support Ad Monetization?

Tenjin provides users with a dedicated Ad Monetization Report that consolidates and normalizes revenue data, and ties it back to their ad campaign spend. The ad revenue is cohorted to life-time value (LTV) and tied to return on investment (ROI).

The dashboard allows users to view their ad monetization data from different ad networks (or ad monetization channels) and get access to the following metrics for each of their apps:

  • Reported Ad Revenue
  • Reported Impressions
  • Reported Clicks
  • eCPM (Effective Cost per Mille)
  • eCPC (Effective Cost per Click)

How do you monetize a mobile app (with examples)?

There are two main ways that users can monetize their mobile apps: through in-app purchases (IAP), and through in-app advertisements (IAA).

What are in-app purchases (IAP)?

In summary, in-app purchases or IAP are the classic method of ad monetization within a free mobile app or mobile game.

What is an example of an in-app purchase (IAP)?

An example of this is Bumble, which is free to download but requires users to purchase a premium version of the app (Bumble Premium) to get extra benefits. In the case of Bumble, with the premium version users can get access to unlimited likes, advanced filters, unlimited rematches, etc—all features that are not available to them in the free version of the app. So the act of users purchasing Bumble Premium is an example of an in-app purchase.

What are in-app advertisements (IAA)?

In-app advertisements or IAA is a second form of ad monetization method. It involves three parties: the advertiser, the publisher, and the ad network. The advertisements of third parties (also known as advertisers) are published in the mobile apps of mobile publishers through various ad networks that connect the two sides by acting as a channel between supply and demand.

What is an example of an in-app advertisement (IAA)?

Think of TikTok, where every now and then while scrolling through the feed users are shown push-ads for a third party app. For the sake of thIS example let’s say the third party app is Duolingo. So in this case, TikTok is the app publisher, and Duolingo is the advertiser. If a user clicks on the Duolingo ad and installs the app, TikTok will get ad revenue from Duolingo.

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