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.