Felix Speiser is Fyber’s VP of Product Marketing & Innovation, where he guides the development and direction of our ad monetization solutions. The excerpt below has been taken from the full piece originally published on PocketGamer.biz.
I’m often struck by a common misconception among developers – that eCPM is the primary metric when talking ad monetisation. I’d like to set the record straight. While eCPM is important for ad monetisation, I’ve come to believe that looking at this metric alone actually obscures revenue opportunities from developers trying to optimise their ad monetisation.
The problem is that the eCPM only measures half of an ad’s monetisation strategy and it’s easy to miss the other half of the equation: ad inventory. While eCPM represents the price at which a developer’s ad impressions are bought, their ad inventory amounts to the total number of ad impressions they are making available for advertisers to buy.
Why is ad inventory important? While developers can never completely control eCPM, which is set by the market and continually fluctuates, they always exercise total control over the number of ad impressions they make available to advertisers. Ad inventory optimisation, when done cautiously and balanced against user experience, can drive vast and immediate increases in ad revenue.
Given the potential of smart ad inventory optimisation for developers, I’d like to take a closer look at how developers can optimise their ad inventory for better overall ad monetisation.
Optimising Ad Inventory: A Framework
While every game or app is different, I believe there’s a simple framework that can help all developers describe, analyze and optimise their ad monetisation strategies.
There’s more! Read the full article on PocketGamer.biz.