CPM mobile ad networks are gaining popularity with every passing day. But what makes them so important? It is the monetizing potential of mobile ad networks that keeps them running in the market.
With growing mobile apps and games, publishers seek new and better opportunities to earn and grow their revenue. For this, mobile publishers look for platforms that ease out their struggle to monetize. Mobile ad networks stand among the list of platforms that not just enable monetization but also increase app performance.
The world today actively relies on the digital space precisely their smartphones and the apps installed within. In this age, over 6.648 Billion people actively use smartphones adding value to the digital industry’s growth. This gives app developers and publishers a massive opportunity to earn and grow their in-app revenue via multiple monetization strategies. No doubt, the mobile industry has multiple options to monetize but in-app advertising still stands out among the rest. It is assumed that the global mobile app revenues will hit $935 billion in 2023 out of which a major chunk will be derived from paid downloads and in-app advertising.
This information brings us to the point to highlight the importance and benefits of using a CPM mobile ad network. Mobile app publishers and developers need mobile ad networks with swift performance to enable in-app advertising for monetization. And, to make revenues accelerate, even more, these publishers need to opt for the top mobile ad network offering efficient mediation. But before mentioning a few more technical terms, let’s explore what is CMP and what it has to do with in-app advertising?
What is CPM?
CPM stands for Cost per Mile, which means cost per thousand. By using a CPM model for monetization through in-app advertising, publishers get paid for every thousand impressions that their respective ad generates. The CPM model enables mobile app publishers to earn every time an ad is displayed within their app. Similarly, the mobile ad networks offering a CPM model make sure that advertisers pay publishers for every thousand impressions that their ad generates while being served in the app.
So, how is CPM calculated?
The formula to calculate CPM is: total ad spend / total impressions x 1000.
The total ad spend is the total ad campaign budget, whereas total impressions define how many times an ad was loaded within an app.
Why Use CPM?
Cost per Mile – CPM is the most common pricing method used for digital advertising especially in-app advertising. This model has superior importance due to its capabilities to increase brand awareness at most. Hence, CPM advertising is perfect to use when advertising with the intention to increase brand awareness and engagement. Similarly, in the case of monetization, the CPM model seamlessly brings in revenue even if the user is not directly engaging with the ad being served.
If we simplify the answer to why publishers must use CPM advertising, it comes down to unlimited revenues without asking the users to do much. In other words, publishers simply earn by just placing ads within the mobile app or game. So, are the benefits of CPM advertising with an ad network only confined to its usage as a seamless monetization strategy? Well, there is more to it…
What are the Benefits of Using a CPM Mobile Ad Network?
CPM Mobile Ad Networks are a blessing for both, the publisher and the advertiser. All top mobile ad networks today offer CPM pricing. However, the goal should be to opt for a mobile ad network that accelerates performance and delivers the best in-app revenue and ROAS. In the case of CPM mobile ad networks, the benefits revolve around similar thresholds based on performance. Following are the ultimate benefits of using a CPM mobile ad network for hassle-free mobile app growth.
Highly Profitable (For Mobile Publishers)
What essentially do mobile publishers want when they plan to monetize? It is revenue, seamless revenue and unlimited revenue that is availed via ad serving. When making their mobile app available for ad serving, mobile publishers expect multiple opportunities of revenue generation to come their way.
CPM mobile ad networks allow publishers to earn revenue against ad serving. Just ad serving and nothing else! A publisher will gain revenue based on each new impression that he or she gets on the available ad placement. This means, an app user does not need to perform any action to add value to a publisher’s revenue but just simply use the mobile app. The more traffic a mobile app has, the more revenue it generates based on every thousand active users.
Brand Recognition (For Advertisers)
The CPM mobile ad networks are just perfect for advertisers who want to increase brand reach and awareness with in-app advertising. Brand awareness is essential for all businesses especially the ones struggling their way to turn themselves into something big. Not just this, improving brand equity is a smarter move than pushing your users to convert directly. Ample brand awareness gradually leads to better conversion by retaining information in the user’s mind.
The CPM mobile ad networks help advertisers target the right audience personas and promote business to the ones who truly need it. By using a mobile ad network that offers CPM advertising, advertisers can streamline audiences based on their age, gender, interests, and a lot more. This can moreover, add value to greater conversions straight away!
If put things up together, Cost per mile enables publishers to earn with the help of their app’s user base and advertisers with the help of their ad’s reach. By using a mobile ad network that thrives on CPM, publishers can significantly increase revenues.