Mobile ads eCPM is a term that often pops up in the app & game world.
ECPM is one of the key metrics in app monetization, so all developers and publishers should have a clear understanding of it.
To help you get acquainted with this metric, this article will cover:
- What eCPM is and how to calculate it
- Factors that affect eCPM
- Latest eCPM data
- Tips to increase eCPM
What is Mobile Ads eCPM?
ECPM is an acronym for effective cost per mille (thousand).
Even though it mentions “cost,” this metric is not about expenses but — revenue.
Mobile ads eCPM tells app publishers how much revenue they generate for every 1000 ad impressions in their app.
Tracking this metric is a must for all app publishers who monetize their apps with in-app ads. By tracking mobile ads eCPM, you can monitor ad monetization performance and make the most out of your ad space.
eCPM Formula
To calculate eCPM, you’ll need to use a formula that includes total ad revenue and impressions.
Let’s say your app earns $500 a day from ads, and you serve 250,000 ad impressions daily. When you put these numbers in the eCPM formula, you’ll find out you earn $2 for every 1000 ad impressions.
eCPM vs CPM
There’s no talking about eCPM without explaining the difference from CPM.
These two metrics go hand in hand.
The key difference is that eCPM is a publisher-side metric, and CPM is an advertiser-side metric.
CPM stands for Cost per Mille (thousand impressions). This metric tells advertisers how much they need to pay to receive 1,000 impressions of their ads.
While publishers use eCPM to calculate earnings per impressions, advertisers use CPM to calculate costs per impressions.
What is a Good Mobile Ads eCPM?
It’s perfectly reasonable to wonder what is a good mobile ads eCPM. However, there is no universal answer to this question.
Mobile ads eCPMs vary by different factors.
If one of your games achieves a $15 eCPM, while another one has a $10 eCPM, this doesn’t necessarily mean the latter is doing badly.
When analyzing eCPMs, it’s vital to consider all the different factors that influence them, so let’s go over the main ones.
Ad Format
One of the most important things to understand about eCPMs is that they vary depending on the ad format.
These differences can be drastic.
Banner ads are the ad format with traditionally the lowest eCPMs. Interstitial and rewarded video ads perform significantly better than banners, while offerwalls top the charts with the highest eCPMs.
Why is that?
The reason for this lies in the nature of each ad format. The more interactive the ad format, the higher the eCPM. While users often overlook banner ads and other display ads, interactive ad formats attract more user attention and drive higher conversion rates.
Want to see the numbers for each ad format right away? Skip straight to the section with the latest mobile ads eCPM data.
Location
The average mobile ads eCPM also significantly depends on the country we’re talking about.
For example, developed countries like the US, Japan, and Australia have much higher eCPM rates than emerging markets like Brazil, India, and the Philippines.
These disparities exist across all ad formats.
The reason for this is strictly economic — users from more prosperous countries have a higher purchasing power, so advertisers find them more valuable.
Platform
Even if you serve the exact same ads in the same countries, you can expect eCPM variations between iOS and Android users.
But, these differences are not major.
Not anymore.
Historically, iOS users had significantly higher eCPMs than Android users. However, ever since Apple rolled out ATT and deprecated IDFA, this is no longer the case. Privacy changes have made it more difficult to target valuable users on iOS, decreasing the eCPM gap.
Seasonality
Mobile ads eCPM rates fluctuate throughout the year.
For example, eCPMs typically spike around holidays and events like Christmas and Black Friday. During these periods, advertisers bid for ad space more aggressively, naturally leading to higher eCPMs for publishers.
It is also normal for eCPMs to fall during certain periods.
For example, after the holidays, advertisers often reduce ad spending to balance their budgets after a heavy-spending period.
By understanding when eCPMs are likely to rise and fall, app publishers can optimize their ad inventory accordingly.
During peak eCPM seasons, publishers can launch additional ad placements to take advantage of increased advertiser demand. When it comes to off-peak seasons, they can adjust their setup to maximize revenue despite lower eCPMs.
Ad Networks
Publishers have the option to monetize their apps through one or multiple ad networks.
This choice also affects mobile ads eCPM.
When an app serves ads through only one ad network, the demand is limited to that particular source, typically resulting in lower eCPMs.
On the other hand, when publishers use mediation platforms to serve ads through multiple ad networks, this creates higher demand and competition. In this setup, advertisers compete for available ad space across multiple ad networks, leading to higher eCPMs.
Therefore, to get higher eCPMs, it’s recommended to use multiple ad networks instead of relying on just one.
Mobile Ads eCPM per Ad Format: Latest Report
What is the average mobile ads eCPM across different formats, countries, and platforms?
Let’s go through Appodeal’s latest eCPM report for Q4 2023 and find out.
Rewarded Video Ads (Android & iOS)
The US is a long-time leader in eCPMs on all ad formats, and rewarded video is no exception. On iOS, US eCPMs reached $15.16, while Android is behind by a whisker at $15.02.
The countries that rank behind the US are completely different for iOS and Android. On iOS, the US is followed by Taiwan ($13.87) and Kuwait ($11.37), while on Android, South Korea ($11.67) and Singapore ($10.82) are next.
As you can see from these rankings, iOS eCPMs for this ad format are generally higher than those for Android.
Interstitial Ads (Android & iOS)
The average eCPM rates for interstitial ads are somewhat lower than for rewarded video ads.
On iOS, the top three countries were the US at $13.61, Taiwan at $9.57 and Australia at $9.55. On Android, the leading markets were the US at $13.23, Australia at $8.67, and Canada at $8.67.
Similar to rewarded video ads, iOS eCPMs are slightly higher than those on Android across the board.
Banner Ads (Android & iOS)
Banner ads have considerably lower mobile ads eCPM compared to rewarded and interstitial ads.
On both platforms, they fall below the one-dollar mark.
What’s interesting about banner ads eCPMs is that Android rates are higher than iOS rates.
On Android, the three leading countries by eCPMs are the US at $0.87, Canada at $0.54 and Australia at $0.51. The US also dominates iOS rankings at $0.42, followed by Australia at $0.37 and Luxembourg at $0.34.
Offerwall Ads eCPM
As we mentioned earlier, offerwall ads bring in the highest eCPMs out of all ad formats.
Since Appodeal’s report doesn’t cover eCPMs for offerwall ads, we’re bringing you data from other relevant sources.
According to a study by TapJoy, Android offerwall ad eCPMs for mobile games average at $400, reaching $1500 for the best-performing genres. IronSource’s data for the same category reveals similar results, reporting that offerwall eCPMs average at $530.
Yes, you read both of these right.
When it comes to eCPMs, offerwalls are way ahead of other ad formats.
What’s the deal?
It’s quite simple — offerwalls are known for bringing in high-quality app users. Advertisers are aware of this, so they don’t mind paying a premium price to acquire them. As a result, publishers who monetize their apps with offerwalls benefit from extremely high eCPMs.
Here’s what MAF’s Strategic Business Developer, Anant Tyagi, says about this ad format:
“Offerwalls are a game-changer for publishers looking to boost app revenue. With the highest eCPMs in the market, they offer a lucrative opportunity to monetize while maintaining user engagement.
What sets offerwalls apart for top advertisers is their ability to deliver non-intrusive, interactive experiences, attracting quality users and driving deep-funnel events. For publishers seeking sustainable growth, offerwalls are the ultimate solution for maximizing revenue while prioritizing a great user experience.”
How to Increase Your Mobile Ads eCPM?
Now that you have a good understanding of eCPMs, let’s answer another big question — what can you do to increase your mobile ads eCPM?
- Don’t rely on a single ad network. Leverage mediation platforms that work with multiple ad networks to create higher competition for ad space.
- Optimize ad placements. Test different locations within your app to figure out where ads perform best without disrupting the user experience.
- Test different ad formats. Experiment with various ad formats to identify the most effective ones for your app.
- Make seasonal changes. Adapt your monetization setup to seasonal trends to capitalize on peak periods.
- Ensure ad content is relevant. Ad content that aligns with the interests of the app’s audience is more likely to drive higher eCPMs.
Wrapping Up
Interested in boosting your mobile ads eCPM with offerwalls, the world’s most lucrative ad format?
At MAF, we have a proven track record in offerwall monetization. Reach out to us and let’s talk about what we can do for your app!
