Mobile measurement and fraud prevention firm, Adjust, has launched User-Level Ad Revenue reporting in collaboration with the ad mediation platforms ironSource and Fyber. The tool enables app publishers to measure revenue generated from users who engage with in-app advertising. User-Level Ad Revenue has been the missing ingredient that enables marketers to measure user lifetime value (LTV), and optimize retargeting and cross-promotion campaigns.
By 2020, mobile apps are predicted to generate $188.9 billion in revenue via app store purchases and in-app advertising. Ad revenue, generated from in-app advertising, has gained momentum as a viable monetization model for many app publishers: estimates predict a 60% increase in apps monetizing through in-app advertising in 2019.
Today’s industry standard is based on reporting aggregated and averaged ad revenue data. This prevents app publishers from tying back ad revenue data to user acquisition sources or breaking it down to any segmentation level. Rather, the data they receive is aggregated across an entire network, without valuable, granular metrics. As such, in-app ad revenue is shown as equally distributed among a user base; however, the majority of this ad revenue is actually generated by a small group of users – referred to as “ad whales” whom make up 80% of the advertising revenue for mobile apps.
Ad Revenue gives app publishers an easy and privacy-compliant way to tie back monetization revenue to the source of the user and compare with the cost of acquiring those users. With these new insights, marketers can now calculate average revenue per user (ARPU) and lifetime value (LTV). This data can be used to calibrate their ad spend more efficiently, hone optimizations to reach users that click, and retarget effectively.
Paul H. Müller, Co-Founder & CTO at Adjust