In the dynamic world of mobile gaming, ad revenue has become just as important as in-app purchases for generating income. Increasing ad revenue allows you to effectively monetize users who don't make in-app purchases, thereby boosting customer lifetime value (LTV). This comprehensive guide will provide valuable tips to help you maximize your ad revenue by improving your effective cost per mille (eCPM) and increasing impressions.
AD Revenue = eCPM * Impression
Waterfall mediation is a traditional method of ad monetization that uses a yield optimization model. It delivers ads from networks based on historical eCPMs, with ad impressions cascading from the highest expected CPM to the lowest for each ad request. While header bidding has gained popularity, waterfall mediation remains crucial as some networks yield better results using this approach or lack support for header bidding.
To optimize the waterfall, fine-tune it by adjusting, reordering, or adding/removing line items' eCPMs to maximize revenue. The goal is to encourage bidding competition by attracting more networks to compete for high-impression eCPM sections. It is essential to constantly monitor the impression and revenue contribution of each line item to ensure effective waterfall optimization.
Examining ad impression data helps identify the most effective strategies for maximizing revenue. By plotting eCPM on the Y-axis and ad impressions on the X-axis, different scenarios can be evaluated.
Case A represents stable waterfall status with potential for further optimization. Case B indicates a high number of ad impressions at low eCPM levels, which may lead to insufficient ad fill and missed revenue opportunities. Case C demonstrates a higher likelihood of success at higher eCPM levels, suggesting potential for optimization and increased revenues.
In Case A, it is evident that ad impressions are not very high when eCPM levels are either high or low. However, there is a significant increase in ad impressions when the eCPM is in the mid-range. This indicates that the waterfall status is relatively steady but there is room for improvement and further optimization in this scenario.
In Case B, a substantial number of ad impressions are observed with low eCPM rates. This may indicate a potential issue - if the line items are undervalued, there could be a shortage of ad fill leading to No Fill. Moreover, networks capable of producing ad impressions at a moderate price range may not be optimally utilized.
In Case C, the situation is different. The possibility of success is greater when eCPM levels are higher. Although there may have been missed revenue opportunities, there is a positive aspect to it. By incorporating line items with top eCPMs, optimization and potential revenue increase can be achieved.
Impression level revenue data (ILRD) provides revenue data mapped at the individual impression level for an ad campaign. By combining ILRD with game data accessible from the client side, valuable insights can be gained. For example, integrating user stage information allows analysis of revenue and eCPM associated with each stage, enabling targeted strategies such as offering greater rewards and incentives to high eCPM user groups to increase their engagement with ads.
Although high eCPMs result in fewer impressions, they can significantly contribute to revenue due to their higher value. High eCPM line items also increase bid prices from bidders, particularly header bidders. Adding high eCPM line items to your ad inventory can boost revenue, provided it doesn't cause significant latency issues. Determining what constitutes a high eCPM depends on various factors such as country, game genre, and operating system (OS). Considering the CPI (Cost Per Install) and IPM (Installs Per Thousand Impressions) metrics per installation helps set an appropriate eCPM that aligns with your game's performance.
eCPM Formula: eCPM = CPI x IPM
Creativity plays a vital role in effective ad monetization. Conduct various tests and experiments to explore new possibilities, such as new ad formats, different ad placements, and new networks. Integrating new ad formats alone can increase average revenue per daily active user (ARPDAU) by up to 10% or more. Choose a mediation platform that aligns with your company's strategy and conduct tests to optimize ad revenue performance.
The mediation platform you choose can have a significant impact on your ad revenue performance. So be sure to conduct various tests to find the optimal mediation that aligns with your company's strategy.
By implementing these simple ad monetization hacks, you can unlock your game's full revenue potential. Focus on optimizing waterfall mediation, analyzing ad impression data, utilizing impression level revenue data, incorporating high eCPM line items, and staying creative with testing. Embrace the power of ad monetization and watch your mobile game revenue soar to new heights.
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