Even small details in your ad settings can have a major influence on
your eventual revenue. What are the key things to know when setting up
ad units? And what are the main factors affecting revenue across the
entire conversion process? Let s start with a look at the revenue
formula and the conversion funnel breakdown to see how you can optimize
Revenue=Impression x CPM / 1000
That is, impression multiplies the average price of a single impression.
We can then break down impressions and CPM separately as follows:
Impression = Ad Requests x Fill Rate x Impression Rate
CPM = Bid x Click Rate x Conversion Rate x 1000
Therefore, the final revenue formula must be:
Revenue = Ad Requests x Fill Rate x Impression Rate x Click Rate x Conversion Rate x Bid
Together, the above factors form the conversion funnel. For ad requests,
the more conversions that come through the funnel, the more revenue is
generated and the higher the CPM rate. This means that throughout the
conversion process, the impression rate, click rate, and conversion rate
are the three main factors you need to focus on optimizing.
The key to optimizing your impression rate is increasing the chances
that your ad will display. This requires focusing your efforts in the
three key areas.
Ad placements on your homepage are far more likely to display than
placements placed on a third- or fourth-tier pages of your app. Taking
in-game rewarded video ads as an example, these ads can be placed to
appear right when players sign in, notifying them of rewards like
doubled in-game incentives that they can earn for watching a video.
For a better user experience, we recommend developers pre-load ads and
cache them locally so they display without any need for loading in real
time. One thing to note is that it is not necessarily better to pre-load
ads too early on, as cases where the user does not view the ad or where
it doesn t display will affect the impression rate.
The best practice for balancing ad pre-loading and the impression rate
is to choose a logical pre-loading timeframe. For instance, in a game
app, if the ad placement features a double incentive offered as soon as
players sign into the homepage, then it makes sense to load the ad when
the app is starting up. If the ad slot appears on the ending page for
each round, then it makes more sense to pre-load the ad after the user
has already started the game.
All Pangle ads are valid for one hour, and an ad displayed after it has expired will be defined as invalid. This makes it necessary to consider precisely when an ad with lower visibility will expire. It also requires that developers set reasonable pre-loading times for ads with slots that are more hidden in the interface.
For developers, click rate optimization is all about expanding their
ads display size and clickable area. There is a clear indication that
as an ad s dimensions increase, so does its click rate.
When implementing ads, developers often limit their clickable elements
to a single "Download" button. By contrast, tests show that when showing
users a more diverse array, upward of 50% of clicks come from images,
titles, and other ad elements. For best results, developers need to make
more elements clickable, increase its clickable area, and decrease the
portion of the frame that is in the background.
The best way to optimize conversion rates is to shorten the conversion
path. Make sure your conversion path is running smoothly so that users
can instantly open the app store, start downloading, or open their
browsers once they click on your ad.