Reward Video Ad is becoming a mainstream revenue generating tool for game and websites alike. One of the most common questions we get asked is, “how much money can I make using Reward Video Ads”.
Revenue from video ads depends on various factors. But the one factor that plays a huge role is Geography. That is, the location of the user who is going to see the Reward Video Ad matters more than any other variable. Geography determines the advertisers levels of payout and interest.
The payout is measured by CPM while interest to serve is measured by Fill-rate. In this blogpost, I will cover the two main variables – CPM and Fill-rate
CPM/Payout – Simply put CPM is the amount one gets paid per 1000 video impressions. CPM calculation considers several factors such as engagement rate, click rate, view complete rate, Player size, Video quality, Content quality, Audience quality, Month of the year, Day of the month etc.
The main factor determining CPM / payout, however, is Geography. Demand for first-tier markets (North America and Western European countries) is 10 times higher than demand for third and 4th tier markets. Here is what one should expect when serving video ads in different geographies.
To illustrate, let’s assume your Web Game has 100,000 Daily active users and you serve 300,000 video impressions to these users every day. If all users are based in North America, you will generate $2,400/day. If all your users were coming from a mobile App, your revenue per day will be $3,000.
Fill-Rate: Fill rate largely depends on geography. As I mentioned on previous paragraphs there is a lot of demand for North America and Western Europe audience. As a result, advertisers are willing to pay more in these geographies as compared to other locations. Here is what we are seeing in our network of clients that have integrated AppLixir Reward Video Ads.
To illustrate the above table, assuming you have 100,000 daily active users in the US, whenever you request Video ads, 90% of the time, there will be a demand, hence video ad gets served. In South America, 45% of the time you will get a video Ad.
By combining the two factors, CPM and fill-rate, you can have a clear idea on what your revenue will be like if you use AppLixir Reward Video Ads (Note that results may vary depending on various factors).
To illustrate, lets assume you have a web game that has 100,000 daily active users (see user geo composition)
Feel free to reach to us at email@example.com for more questions on Reward Video Ad.
AppLixir is a Reward Video Ad Platform for Web and Mobile Games… Learn more about our platform at www.applixir.com