If you are an app developer or mobile site publisher using multiple ad networks; you must have evaluated their pricing performance (rates) one way or the other. Do you look at CPC, eCPM, Fill rate or overall revenue? How do you decide which is the best metrics to look at in your case?
Since there are a lot of metrics available across multiple ad networks, most of us might consider one or two metrics to create our perception about ad network rates. However the revenue objective of any developer/publisher is to make maximum revenue from ads without compromising too much on user experience. That would mean increasing the overall revenue from the ad requests shared with ad network.
If we have to put this in a formula, it would be: Total net revenue/ Total number of ad request shared. Lets call it RPM and to bring it at par with CPM and formulate the metrics as:
RPM = Revenue per thousand requests shared.
For instance, if you are sharing 6 million ad request with network X and it generates net revenue of $1200, your RPM would be $0.20.
RPM = $1,200/(6,000,000/1000) = $0.20
Therefore, RPM = $0.20
This metric is far more accurate way of measuring the performance of any network, since it moves away from other distracting metrics (like CPC or CPM) that may give you misleading information.
Its often seen that publishers may not be too vigilant about the numbers shared by their ad monetization platform. Different networks may be strong at different metrics but ultimately it should mean more revenue for the publisher. For example, a network may have higher CPM or CPC but it may be making overall lower revenue for you. Another network may be high on fill rate and CPC but it may delivering low CTR. Since RPM is combination of all three metrics i.e. Fill rate, CPC and CTR, it proves to be the best metric to look at.
Below is an attempt to explain typical metrics shared by ad networks:
- Ad requests – Total number of ad request that your ad monetization partner is receiving.
- Impressions served – Total number of impressions that are served by the ad network.
- Impressions loaded or viewed – Total number of impressions that actually appeared to view on your mobile property.
- Clicks – Total number of unique and valid clicks recorded by ad network.
- Revenue – Total revenue accounted for all the impressions and clicks on your properties.
- CTR – Clicks to loaded impressions ratio
- CPC – Average cost per click
- eCPM – Cost per thousand loaded impression.
- RPM – Cost per thousand ad requests.
Every network may not share all the metrics and that’s why its important for you to do your homework well. Feel free to share your evaluation and analysis with us OR ask us any questions regarding this. Just mail us at firstname.lastname@example.org with subject: ad network evaluation.
Note: Developers and Publishers using advance prioritization and mediation, may have to look at combination of RPM and eCPM to evaluate the ad network performance.