Understanding AdMob CPM and eCPM is an added perk to anyone interested in AdMob. A well-known mobile advertising platform developed by Google app developer that allows app developers to earn money by incorporating ads into their apps.
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AdMob’s CPM (Cost-Per-Mile) and eCPM (Effective Cost Per Thousand Impressions)
Developers should understand AdMob’s CPM (Cost-Per-Mile) and eCPM (Effective Cost Per Thousand Impressions) metrics. these indicators influence the amount of money your app can generate.
CPM (cost-per-mile)
CPM measures the revenue a developer can anticipate to receive from each 1000 ad impressions. It is calculated by dividing the anticipated earnings by the number of requests and then dividing the resulting number by 1000.
CPMs can vary based on ad formats, origin countries, and advertising networks. CPM would be calculated as follows if an app received 10,000 ad impressions and expected earnings of $5.
CPM = $ 5 = 0.5 x 1050 x 1000
In other terms, the developer would earn $5 for each 1000 ad impressions.
(eCPM) Cost-Per-Thousand-Impressions
eCPM is an estimation of a developer’s revenue per one thousand ad impressions. It takes into account both cost-per-mille (CPM) and fill rate (the proportion of ad requests that are satisfied by actual ads).
The eCPM is calculated using the following formula:
eCPM = Total EarningsImpressions 1000
eCPM = ImpressionsTotal Revenue 1000
This is how extra_id_app > would be calculated: extra_id_app >= frac 0 multiplied by ad = $5 If an app receives 10,000 ad impressions and its total earnings are $5, the app’s earnings per thousand impressions are $0.05.
In other terms, the developer would probably earn $5 for every 1000 ad impressions.
Setting eCPM Floors
AdMob enables developers to set eCPM floors, or the minimum eCPM values that advertisers must meet in order to have their ads displayed in the developer’s app.
This function guarantees that developers only display ads of the highest quality to maximize revenue. AdMob will prioritize serving ads with an eCPM greater than or equal to the specified floor value.
AdMob determines which CPC ads to exclude from display based on a predicted eCPM for each impression based on the likelihood that the winning ad will be selected. If the estimated eCPM is less than the minimum eCPM, the ad is not displayed.
By specifying eCPM floors, the load rate of ads in your app may be impacted. Setting the eCPM threshold too high may reduce total revenue by decreasing the fill rate, as there may not be enough ads to fulfill all ad requests.
Factors Affecting Admob CPM and eCPM
AdMob’s CPM and eCPM rates for developers may vary depending on the following factors:
If developers want to maximize their CPM and eCPM rates, they must take these factors into account when optimizing their app monetization strategies and experimenting with new ad formats, targeting mechanisms, and ad networks.
AdMob’s Earning Potential
AdMob enables you to display ads from Google and other networks within your app, allowing you to monetize it. However, what is AdMob’s genuine earning potential? Then, what are the variables that influence your earnings?
CPM represents the price for one thousand impressions. This is the cost to the advertiser to reach 1,000 individuals with their message. If an advertiser pays $2 CPM, they will pay $2 for 1000 impressions of their ad.
eCPM refers to the cost per thousand impressions in this context. Your advertisement’s cost per one thousand impressions. (Total Revenue / Impressions) times 1000 is how eCPM is calculated. If you earn $10 from 5,000 impressions, your eCPM is ($10 / 5,000) x 1000 impressions = $2.
Advertisers pay the cost per mille (CPM), while you retain the effective cost per mille (eCPM). Depending on factors such as fill rate, ad network, ad type, and user location, the eCPM may be less than or greater than the CPM.
fill rate
The fill rate is the proportion of ad impression requests that are satisfied. For example, your fill rate is 80% if you request 1000 ads but only receive 800. If your fill rate is higher, you can run additional ads and earn more money.
The ad network serves as a platform for connecting publishers and advertisers. AdMob allows you to use various ad networks to increase your fill rate and eCPM. AdMob mediation allows you to choose the most appropriate ad network on the move.
Ad format.
The format of your app’s advertisements is known as its ad format. AdMob provides four types of advertisements: banner ads, interstitial ads, rewarded ads, and native ads. Banner ads are the small advertisements that appear at the top and bottom of the screen.
Similar to banner ads, in-app interstitials consume the entire display. Rewarded ads are a form of video advertising in which the viewer obtains a reward for watching the advertisement. Native ads are ads that merge in with the overall design of your app.
Due to the differing levels of consumer interest and click-through rates generated by each type of ad, the eCPM you receive will vary depending on the ad style you select. Typically, rewarded ads have the highest eCPM, followed by interstitials, then native ads, and then banner ads.
User location refers to the geographic provenance of your consumers. Your effective cost per thousand impressions (eCPM) will vary by region due to differences in advertising competition and consumer purchasing power. Users in developed nations have a higher average eCPM than those in developing nations.
Admob CPM and eCPM Example
Based on data from 2023, these average eCPM values for various ad formats and platforms should serve as examples of the potential earnings you can anticipate from using AdMob in India.
Rewarded Advertisements: $1.50 on iOS and $13 on Android
For interstitial ads, the cost is $1.10 on Android and $15.26 on iOS.
On iOS, native ads cost $0.20, and on Android, they cost $0.30.
Android banner ads cost $0.10, whereas iOS banner ads cost $0.15.
Not only do eCPM values vary significantly between Android and iOS, but also between ad formats. Consequently, targeting users in locations with a high eCPM and utilizing a variety of ad formats can increase your AdMob earnings.
AdMob is an excellent monetization option, but it requires adjusting and testing to determine the optimal parameters for your application and user base.