Wednesday, August 22, 2012

Mobile App Advertising Metrics

Mobile App Advertising Metrics

I'm looking for some basic metrics and info on how advertising revenue works for mobile apps.  

- How much does one make by having a company's app listed in my app with a link to the app store? Do people pay for the placement? The Views? The clicks? The purchases?
- What about other types of ads inside apps?

For instance, on the web, I'm familiar with placing ads on my webpages that earn based on:
- total page loads.  So everytime the page loads, or every thousand times is the usual metric, we might earn $2.50. This is called $2.50 CPM. Of course, some ad placements and websites earn a lot more, others earn less. Big vendors are Valueclick and Tribal Fusion.

- pay per click.  On these ads (usually Adsense), we get $0.15 (or whatever) everytime someone clicks on the ad. Over thousands of users and page impressions, this averages out and produces a eCPM (equivalent of a CPM). 

- pay per action. These are the affiliate programs where they pay if the user registers or signs up.  I've stopped using them since I've only found one that out performs (on a eCPM basis) CPM or PPC advertising and generally, I've wasted lots of time trying them.  The one that I use pays $25 per sale on a $49.99 product.

- preroll videos - These videos are embedded at the start of a game or video (or in the middle) and pay on a CPM basis.  Some pay if they just start to roll, others pay only if they are totally viewed. They tend to get really high CPMs.  Say $25

Can anyone summarize how this works, who the vendors are,  and what the numbers might be for childrens' educational mobile apps?

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