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Best Practices for Increasing Your App's revenue

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 your CPM.
The revenue formula

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.
Optimizing your impression rate
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.
1. Increase the visibility of ad placements
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.
2. Set your pre-loading time to ensure the best possible impression rate
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.
3. Pay attention to ads' validity

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.

Optimizing your click rate
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.
Optimizing your conversion rate
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.