Learn how to forecast Ads Revenue with your financial model made with Sturppy.
To configure the revenue from your ads, go to
/Revenues/Ad Revenue, here you will be able to configure everything you need in just a single page.
The most important input for forecasting ad revenue is the eCPM and the number of impressions per day.
eCPM: Estimated Cost Per Mille
This is the estimated revenue that you will receive from one-thousand impressions of your ads. An impression is when a user sees an ad (he doesn't need to click on it). Basically all the ad-networks use this single metric to calculate and to inform you of how much you are going to earn.
Estimating this number can be very hard, it depends on a multitude of factors, including, but not limited to:
- Platform: wheter your user is using iOS or Android, your eCPM will be higher (first case) or lower (second case)
- Country: some countries have an higher average eCPM than others. For instance the United States have the highest eCPM. You can easily find a table of the countries with the highest eCPM. If you are targeting a specific country you need to take this into consideration.
- Ad Type: depending on the ad type that you are going to use you will have an higher or lower eCPM. This is the usual order from highest eCPM to lowest eCPM: rewarded video, interstitial, banner.
If you don't have an idea of a plausible eCPM and you have already searched on Google, we suggest to start with 1$.
eCPM by Country
You should do a Google search for you specific case, but you can check this article as a starting point for getting an idea of eCPM by countries.
Impressions per day
By knowing the number of impressions that you receive each day it is easy to project the revenu for your ads:
impressions per day * eCPM / 1,000 = revenue per day (we divide by 1,000 because the eCPM is for a thousand impressions).
Estimating the number of impressions is a matter of knowing really well your app and how your users will use and move in it. In order to help you, Sturppy gives you two options for calculating this number:
- Time method
With this you have to enter this inputs: sessions per day, so how many times a single user will use the app in a single day; average session duration, how long each of these sessions is going to last; impressions per minute, how many ads you are going to show to your user per minute.
- Direct method
Enter directly the number of impressions that a single user will make in a day.
At the end, you will have the projections of your impressions and of your revenue. You can also check out the distribution of these numbers by their traffic source.
Estimating Impressions Example
Let's try to calculate the impressions per day of Instagram.
Let's say that the average user opens the app 10 times per day and spends around 15 minutes on the app each sessions. Instagram has an add every four to six posts (a bit more frequent for stories) so, let's say that an average user will see 20 ads in a minute.
10 sessions * 15 minutes * 20 impressions per minute = 3,000 impressions per user per day
This is just an example based on assumptions, but you can follow this method for your app.