What is ad revenue?
Ad revenue is the income apps earn from in-app advertising which could be banner ads, Interstitial ads, native ads, gamified ads, and rewarded ads. App ad revenue is calculated as:
Ad revenue = impressions * eCPM.
How does it work?
App developers can earn ad revenue by creating an ideal space in their apps for publishers and advertisers to purchase and display their ads. A solid monetization strategy is required to increase ad revenue which means high-performing ad units such as mobile video ads, playable ads, and rewarded ads.
Why’s ad revenue important?
Ad revenue is a crucial revenue source, especially for Hyper Casual and Casual gaming apps because of their low rates of IAP (in-app purchasing).
When users’ engagement with the ads increases, this will inevitably result in retention, and ultimately revenue. For instance, gaming apps can use rewarding ads to give in-game rewards and incentivize the users to increase engagement and play the game consecutively for various prizes.
