ABCs of Mobile Advertising: How Your App Can Make You Money
Now that you created your app it is time to make some money, and advertising should be an integral part of your monetization model. For many it can be an overwhelming process, but it doesn’t have to be. When you use a simple and easy-to-implement Ad API combined with a generous ad revenue share program, you can put your app to work for you faster than you think.
I recently took on the responsibility for AT&T Ad APIs. As a seasoned product manager, with experience on various application concepts including WebRTC, Location (Geo-location, Geo-fencing etc.), and Gaming (X-Box Kinect), I expected advertising to be easy. Boy was I wrong!
It was really interesting to learn how ad networks work with various agencies, which in turn work with product companies who want to advertise their products. First, it’s helpful to decipher some of the acronyms and jargons of advertising:
- eCPM – Effective cost per thousand impressions
- Fill rate – Ratio of ads served
- Impressions – Ads served
- DSP – Demand-side platform that is part of real-time bidding (RTB)
- Interstitial – Full screen ads
- Postitial – Full screen ad that displays at the end of a user’s app session
In the next few blogs I will share more details on these and other concepts so that you don’t have to reinvent the wheel. But let me start by sharing the most basic ad concepts that all developers interested in monetizing apps using the AT&T Ad API should know.
While the AT&T Ad API is probably the simplest and easiest API to implement, advertising, and especially mobile advertising is conceptually way more complicated. Thankfully, I learned that the AT&T Ad API has abstracted all complexities allowing developers to quickly implement the AT&T Ad API without worrying about how advertising business works.
AT&T Offers Developers 80% of Their App’s Ad Revenues
For developers using AT&T Ad API, once a user launches your app, the app sends an ad request to AT&T, which in turn works with the ad network to return an ad for display. (For now, let us not worry about what happens beyond that.) At the end of the month, AT&T will send you your share of revenue based on how many ads were displayed. As a developer, the KPIs you should be most interested in are (a) eCPM or Effective Cost Per Mille (a.k.a. thousand), which is the average rate that an ad network is able to pay per thousand, (b) Fill rate, which is ratio of ads served and ad requests sent, and (c) Revenue share, which is revenue split between you and AT&T.
While eCPM and fill rate can vary based on various parameters (we will get into that in future blogs), the rev share is one thing that the API provider can control. AT&T provides 80% of the revenue to developers, compared to 50-60% paid by most big ad API providers. So, as an app developer not only do you get an easy to implement API, but you also get a large portion of the revenue with AT&T Ad API. Learn more about the AT&T Ad API in the video below:
In future blogs we will discuss more advertising concepts and how you can maximize revenue from your apps. I would love your feedback on this blog as well as input on topics and concepts that interest you so that I can make this blog series more useful for you.