Enter the average daily ad impressions, eCPM (revenue per 1,000 impressions), and the number of days in the month into the calculator to estimate monthly app advertising revenue; this calculator can also solve for any one variable when the other three are known (leave exactly one field blank).
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App Advertising Revenue Formula (eCPM-Based)
The following formula is used to estimate monthly app advertising revenue from ad impressions and eCPM:
AR = (I * eCPM * Days) / 1000
Variables:
- AR is the monthly advertising revenue (in the same currency as the eCPM)
- I is the average number of ad impressions served per day
- eCPM is the effective cost per mille (revenue per 1,000 impressions)
- Days is the number of days in the month
To calculate monthly ad revenue, multiply the average daily ad impressions by the eCPM and the number of days in the month. Divide by 1000 because eCPM is defined per 1,000 impressions.
What Is App Revenue?
App revenue refers to the income generated from a mobile application and can come from multiple sources, such as paid downloads (less common today than free apps), in-app purchases, subscriptions, and advertising (for example, banner, native, rewarded, or interstitial ads). The amount of revenue an app generates depends on factors like its pricing strategy, user base, engagement, and the effectiveness of its monetization strategy.
How to Calculate App Advertising Revenue (Using eCPM)?
The following steps outline how to calculate monthly app advertising revenue using daily impressions and eCPM.
- First, determine the average number of ad impressions served per day.
- Next, determine the eCPM (revenue per 1,000 impressions) in your chosen currency.
- Next, determine the number of days in the month.
- Next, use the formula AR = (I × eCPM × Days) / 1000 to calculate monthly ad revenue.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem:
Use the following variables as an example problem to test your knowledge.
Daily ad impressions (I) = 50,000
eCPM ($ per 1,000 impressions) = 2.99
Number of days in month = 30
Monthly ad revenue (AR) = (50,000 × 2.99 × 30) / 1000 = $4,485.00
