Hey this is the Daily Overpass.
My name is Eric. And I make apps
Now today. I want to talk about
RPM's, Bid Types and Admob Revenue.
All right. So I just had a conversation with somebody on Facebook.
If you try to get in touch with me on our Facebook page sometimes it takes me a few days to get back to you
but we're going to try to launch a Facebook group here very soon.
But I was talking with somebody on Facebook who sent me a message saying,
Hey how come I'm not making any money through AdMob.
And he sent me a screenshot of his
Admob page which you shoudn't do by the way, You are not allowed to share your RPM'S and
your revenue your ECPM'S it everything like that because it's against the terms
and conditions. But he shared me the screenshot.
So I had a look at it and I look at his ECPM which were actually better than mine.
Then he had a really good ECPM
and then I looked at the number of requests
and it was like 450
and the number of impressions was like a 125.
And I thought well the reason is you have no impressions there
That's the reason you're your ECPM is actually really good
but you have very low impressions. And he just responded
with I don't know what you're talking about.
And I thought well actually maybe we should talk a little bit about how you make money with ADmob,
Because there's certain things that you cannot control
you can not control your RPM'S
or which is your revenue per thousand
but you can control your impressions is one thing I think a lot of people don't understand when
they start out is that you need to have a lot of impressions to make any kind of decent money
through advertising so in-app purchases in some ways is way better because a
purchase is a purchase but an impression can be variable.
So what I wanted to do was kind of go over the basics of how this works.
I wish I could show you on my on my screen my admob console.
Again like I said, I can't show it to you because it's against the
terms and conditions of Admob. I do wanna go the basics of how everything works
and if you disagree with me on anything like if you know something to be different then please let me know
but I'm going based on the documentation I've read
and always looking at the report so I look at the
Admob reports all the time.I'm always looking at why is something dropping
like for example if my
Admob revenue is low for a day.
The first thing I do is look at the impressions because that's what I have control over.
Are we getting enough users in or are we giving up downloads
are there enough impressions coming through
or are there enough requests based on the impressions.
So sometimes the requests are constant than the impressions are lower
which means the requests are being made
but they're not being served for whatever reason
or the R.P.M. is lower.
So that's good that's all I can control I think okay well that sounds good
but sometimes the impressions can move to another country so the R.P.M'S in India
might be lower than in the U.S. which they generally are.
So today I'm not gonna to go into all that today
but what I wanted to do is just go through the basics for anybody who is just starting out.
So they know how it works so I've got my iPad again to try to do a little bit of white board thing here
with my bad handwriting but let me go through this.
So the main driver for AdMob is an Ads in General
are ads in general is the R.P.M's or your E.C.P.M's
They named it to R.P.M's which is
RPM which stands for revenue per thousand
it's a lot of people think How do i increase my r.p.m. so I make more money
but that's not how it works. It basically takes the revenue that you make
and divides it by 1000 so basically the r.p.m. is a revenue
divided by.
So it depends of its impressions or requests.
So let's say
impressions
divided by a thousand
and that gives it that gives it to you so that it's not based on the r.p.m.
how much you make the r.p.m. is calculated by how much you make.
So the r.p.m. can either be the impression RPM which would be this
would be the number of impressions divided by a thousand
or it will be the requests.
So the request will be lower because not all requests are going to be served.
So basically you're out makes a request for an ad if the ad network
Admob whatever network it is serves that ad
and then that counts as an impression.
Now what you can control is how much you make for that because there's different ways of doing it.
And again we did this and the livestream would be so up
and were people say do I still make money if nobody clicks on my ads.
And the reason why this is hard to calculate.
The reason why we have no control over it is because there's different BID Types
or me just let me just go. We hear of different BID TYPES
there's four different types in AdMob.
Now if you want to see how your Bid types are doing go
into Admob go into reports
and to start a new report in the grid at the bottom
or you have it by default it's grouped by date
and by ad impression. Just go through remove everything on the right hand side and select
bid type and then you can do bid type per country, bid type per app whatever you want to do
but then you'll see the four different bid types which are these you got the CPM the
CPC the active use CPM in the CPE
and these all stand for the cost.
When I talk about the BID types that's how much the advertisers
are bidding for those ADS. And so if you were going to place an ad for your application
it would say what kind of bid type do you want to do.
So we've got the CPM which is the cost per thousand a mill being a
thousand or so and those are usually very low
and you go the CPC which has a cost per click so you want it if you're going to put an ad out
you might just want to say I one as many people see this as possible.
So but I want to pay as little as possible so I'll do the cost per thousand.
So I just just put it in as many places as you can.
I don't care if anybody clicks on it or not.
Or you might say no it's important to me because every time somebody clicks on this I can
make such amount of money. So you would pay more for a cost per click.
You also have the active view CPM
which is it's really weird the way this works.
If you look at the ads it's documentation basically that means it shows up on the screen which I would think
we'd want more than a CPM
but they did distinguish between the two types.
And then you get the CPE which stands for cost per engagement as well like you
see like they play a game
or they'll take a poll or something like that or something a bit more involved.
Now for me and I think for most people I've ever spoken to the big revenue earner
if you go on your adMob report and you run this kind of report is CPC cost per click.
So that's what makes the most revenue
but it's also kind of annoying because their cost per click usually takes them out from your app.
So. This is one of the reasons why we have no control over this now
I've gotten through it. I think my whole thing was at first when I when I learned all this stuff I
think oh how do I just get rid of this
and get rid of this. What if I just all these SERPs showed cost per click bids
but you can you can't restrict the bid type so it is a combination of those so a lot
of times if your ad revenue was really low and nobody clicked on anything it could be a cost per
mil in those costs per Mills would be really really low.
So let's say you're cost per mill five dollars.
Sorry yeah. This is five dollars which is not bad right.
I mean it's pretty good for a Cost per mill. But let's say you serve
serve a thousand impressions then you should get the five dollars.
But if you serve less than five thousand impressions you're not.
So you have that we're talking about a lot of skill here
and this is something I think it's really good to know
and it's just going to we're looking at your reports because what you start doing that you'll see that that
that RPM is different in different countries.
You know you lower bid types. The Bid Types in the
and the bids are the advertisers that's what drives everything
and that's why you have no control over. You have no control over.
And I think one of the reasons they don't want to share the RPM is because I'm sure the big
apps angry birds or whatever whatever the big ones are now I'm sure they get a better RPM than I
get because they're going be able to serve more advertising
Or they might have higher quality ads or maybe there's some machine learning thing going on in the background.
But but there is and if there's anything you guys would like to add about this for those you guys who work
a lot with the be a lot with AdMob, with a lot more experience
with this to be please put in the comments but this is mostly for people who are just starting out because
it's it's important to know how this kind of stuff works is important to know you.
if your ads are starting to fail you can't just put ads on there
and then look at the total and think Why is this not working.
There are certain things that are working and certain things that are.
For me the RPM's have always been much higher in the U.S.
and they've been higher on IOS they've been in the CPC
been delivering the most. So they've always been the best performers for me
but there might be different for other people.
And then there's other things. If you just go through it drill down in different surface
and see what are the different types that do the best you know the images are videos are rewarded ads
and just been able to to to know your numbers really well even though you can
control them you cannot control the revenue that comes in.
Based on that but you can control where you do have the control over is
and my serving enough ads or have enough impressions to have enough downloads.
And that's that's really all that you can do.
So hopefully that's been helpful little bit please add to the comments if you if you if you think I
said anything wrong. If I if I'm not, cause this the information I've been running off
of for years so. You know I have verified this
with that. But there's a thing you think you might want to add to this would be great.
And that is it for today. I'll talk to you guys again tomorrow.