Managing app revenue with AdMob
AdMob lets you earn revenue by showing ads in your mobile app. Setup needs an AdMob account, an app that is live in the store, and SDK integration. Revenue is calculated per thousand impressions rather than per impression, and the choice of ad format affects revenue more than it affects user experience.
AdMob sits in a different place from the other channels on this list. On the others you spend money, on AdMob you earn it.
But the measurement problem is the same: revenue on one screen, user behavior on another, and the relationship between them invisible.
1. Setup
Open an account at admob.google.com
Add your app, it connects directly if it is live in the store
Create your ad units
Integrate the Google Mobile Ads SDK into the app
Complete your payment and tax details
2. Ad formats and their effect on revenue
Rewarded video strikes the best balance between revenue and experience. The user chooses to watch in return for something.
Format | Revenue | Effect on experience |
|---|---|---|
Banner | Low | Low |
Interstitial | High | High, disruptive in the wrong place |
Rewarded video | High | Low, the user watches willingly |
Native ad | Medium | Low, embedded in the feed |
3. eCPM and calculating revenue
Revenue is calculated on earnings per thousand impressions, the eCPM. Your monthly revenue is roughly impressions divided by a thousand, multiplied by the eCPM.
eCPM varies with country, format and season. eCPM in emerging markets sits below Western markets, so user geography directly affects revenue.
4. Policy and account risk
Invalid clicks, clicking your own ads and misleading placements lead to the account being closed. A closed AdMob account cannot be recovered.
Placing an ad next to a button raises clicks in the short term but produces accidental taps and counts as a policy violation.
Having an AdMob account closed is not reversible. Do not take risks on placement decisions for a short-term rise in revenue.
Understanding what happened when revenue falls
AdMob revenue fluctuates. The cause may be a drop in fill rate, the eCPM season, an SDK problem after an app update, or a fall in user numbers.
The AdMob dashboard shows revenue but not the cause. The cause is usually on another screen: app analytics, release notes, user counts.
Sources
Frequently asked questions
How much can you earn from AdMob?
Does AdMob cost anything?
When are payments made?
Can I use AdMob and advertise at the same time?
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