August 18, 2009
Hey devs, we here at Mobclix wanted to provide you to a handy guide to the monetization concepts you need to understand.
1. CPM: Cost per thousand impressions – an impression is every time an ad is viewed. The CPM is the money you get for every thousand impressions you show on your application.
2. CPC: Cost per click. CPC is the money you receive for every click on an ad within your app.
3. CTR: Click-through rate. CTR is the number of users who click on an ad divided by the impressions shown. For instance, if ten people clicked on an ad out of 1000 impressions then the CTR is 10/100= 1%. Most mobile advertisers judge campaign performance based on CTR.
4. CPM versus CPC campaigns: In a CPM-based campaign (AKA premium or brand campaigns), a developer is paid per impression irrespective of click-through rate (CTR). In a CPC-based campaign (AKA performance campaigns), a developer is paid per click.
5. eCPM: effective CPM. For a CPC based campaign you can measure the eCPM so you can compare it to CPM-based campaigns. One way to calculate eCPM for a CPC based campaign is CPC x CTR x 1000.
6. Ad Network: An ad network serves advertisements to publishers, either directly or through a mediation layer (see definition below). Some examples are Quattro and Millennial.
7. Mediation Layer: A service that helps manage the connection between publishers (developers) and ad networks. It allows developers to connect to multiple ad networks and to manage their ad network allocation. It is important for developers to use mediation layers to realize the maximum eCPMs and 100% fill rates (low fill rates are caused by a lack of ad inventory and result in you losing out on $ from ad impressions).
8. Ad Exchange: An ad exchange is a marketplace that allows advertisers to bid on access to targeted ad inventory. Developers get the highest paying ads. Mobclix is the most targeted mobile ad exchange (see below).
9. Analytics: Analytics for iPhone applications allow developers to understand their user base and how their app is being used. Do users spend a long time on level 6 and then never play again? Maybe it’s too hard of a level. Are your users on wifi or 3G? Good analytics should give you granular data on session times, user base, and more. Analytics can also be used to target ads to a specific user base producing higher eCPMs because advertisers will pay more for targeted campaigns. Rich analytics will improve the user experience for applications thereby resulting in higher download rates.
10. Mobclix: Mobclix is the largest mobile ad exchange. We optimize ad inventory for the highest eCPMs through our sophisticated bidding platform for advertisers, ad networks, and agencies. Find out more or shoot us an email.