With so much going on in the industry today, business owners are facing quite a lot of different challenges. Web publishers and diverse online business can only stay afloat by making an effort to establish an effective ad revenue strategy. This is only possible by understanding the basics. How contemporary mobile ad monetization works is not too hard to grasp.
There is a variety of methods used to calculate ad revenue or overall monetization. So, let’s start there. The point, however, is to stick to a system that is both intelligent and efficient, so you’ll achieve higher yield, which may seem like a tremendous task for publishers.
What is Mobile Ad Monetization
Monetizing online traffic has never been simpler. All you need is a decent video player, one that’s feature-rich and delivers a whole bunch of options in terms of revenue. One of the quickest ways for publishers to generate income these days is via mobile ad monetization. Mobile traffic, and optimizing for mobile has virtually become the goal for most business owners.Did you know that 90% of consumers watch #videos on their #mobile, while 60% watch on #desktop? Click To Tweet
There isn’t much doubt how important video ads are to both small and large businesses. In fact, it was noted that in 2019 there is 5.11 billion unique mobile users across the glove (which marks a 100 million (2%) jump when compared to 2018. What’s more, as of January 2019 3.26 billion people access social media on mobile devices, which makes for a 297 million increase (over 10%) since 2018. Mobile devices are also utilized for more than 40% of online transactions. Many companies have been staggered by the recent statistic that 80% of online shoppers resort to smartphones while shopping physically. Meanwhile, it must be said that 90% of consumers watch videos on their mobile, while 60% watch on desktop.
Bearing all of that in mind, the fact is that this is an industry that’s growing fast and is skillfully dictated by several major players (i.e. corporations) such as Google, Amazon, Apple, etc. For example, apart from mobile ad monetization, you also need to know about mobile-first indexing. Mobile-first indexing denotes an effort to predominantly utilize the mobile version of content for indexing and ranking.
How Ad Revenue Calculation Works
Getting your online business setup and ready for monetization might prove to be a daunting task. If you’ve ever struggled with the terminology or technical know-how regarding mobile advertising, or indeed video monetization, you should be aware that there really is not much to it. At first glance, things may appear a bit confusing, albeit it doesn’t take much brainstorming to figure out how the whole system works. In order to do that, we’ve provided a few explanation as to how the how you can calculate your own ad revenue.How to easily setup and measure your ad revenue... Click To Tweet
In addition, of course, we’ll be providing details on how you can easily setup and measure your ad revenue via the BridTV video platform and BridTV Marketplace – both of which denote fast and easy implementation. At any rate, we’ve been getting a lot of questions from clients in relation to specific aspects of video monetization and we’ve decided to provide our readers with some basic info about that.
So, how does it really work?
Well, there are multiple types of business models when it comes to ad campaigns, via any mobile ad network.
CPM (Cost per Mile) – this particular model is the most frequent and it involves the advertiser being charged every time their ads are shown 1,000 times (hence the use of ‘mile’). Publishers frequently use this particular type, seeing as it means they are earning money each time an ad has been displayed. For a publisher that has predictable traffic, this model allows them to predict revenue.
Other models include:
CPC (Cost per Click) – the advertiser pays the publisher when a user clicks on the ad.
CPI (Cost per Install) – the advertiser pays the publisher when a user installs an app.
CPA (Cost per Action) – the advertiser pays a specific amount based on a user action to evaluate performance.
Each one of these works differently. Let’s find out more.
VAST and VPAID
You won’t get far in the realm of mobile ad monetization until you’ve understood how VAST and VPAID ad formats work. It’s very simple really. VAST stands for “Video Ad Serving Template.” It’s a specification created for serving video ads. It basically allows the communication between the video player and video ad server. Certain scripts are sent so that the ad behaves according to specific instructions. This means the script dictates:
- Which ads are played.
- Ad duration – how long it lasts.
- If it’s skipabble.
- How ads are displayed.
- Ad location (the ad server).
- ….and so on.
While VPAID and VAST are just ad formats, it must be stressed why they are crucial to advertisers. VPAID, for instance, means advertisers can see the performance of the individual ad. This is essential in order to tweak and improve ad tech and ad strategy. So, if an ad isn’t engaging with audiences, they can re-adjust how the users interact with the ad itself.
Looking at VPAID specifically, this particular ad format can involve enabled interaction so users click on an ad to view content with more info, in addition to getting longer pre-roll, and so on. The ads can also be optimized – what time they show, where they appear within the content, in addition to whether or not they contain functions such as play, pause, hide, etc. These are all conveniences and advantages that can ultimately lead web publishers to their desired goals.
Mobile Ads and Video Advertising – The Bigger Picture
The sometimes intricate system of modern-day online marketing can put people into a world of confusion. The goals, however, for both advertisers and publishers have always remained the same – getting enough income through the doors, while keep users happy. Meanwhile, in order to work smoothly any mobile ad monetization system needs to involve both Android mobile SDK and iOS SDK.
Remember, mobile ads and online video ads in general have their limitations, but as a form of monetization they are extremely powerful. Staying informed about video technology and relying on the right tools for mobile ad monetization is your one and only ticket. You alone are in charge of your business and you can optimize your business model when it comes to earning money from ads. Regardless of the chosen parameters for each ad or ad campaign, advertisers and publishers will be getting accurate data on how ads perform. There’s more to this, of course, and if you want to learn about video ad formats in detail, go right here. Additionally, you can learn about In-stream vs Outstream Video Ads.
We work in a highly competitive industry, and it’s getting harder and harder to nail what you need for your business. That doesn’t mean success is out of reach though. It just means you have to pay attention to the details, learn what you need to learn about the market, equip the right tools and all that remains is letting your business thrive.