Maximize Revenue with Flurry Video Ads: CPM Strategies

In the ever-evolving world of app monetization, a storm is brewing, threatening to disrupt the smooth sailing of developers’ revenue streams.

Apple’s recent IDFA changes have left many app makers in a flurry, desperately seeking ways to adapt and survive.

But fear not!

In this article, we will explore the storm’s impact on CPM rates and unveil strategies that will help developers weather the storm, ensuring their apps continue to thrive and generate revenue.

From setting CPM floors to convincing users to opt-in for data sharing, and harnessing the power of alternative analytics tools like Flurry, we’ve got you covered.

So, batten down the hatches and prepare to navigate the treacherous waters of app monetization!

flurry video ads cpm

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Importance Of Setting A Cpm Floor For Video Ads

Setting a CPM (Cost Per Mille) floor for video ads is crucial for publishers to ensure they earn a minimum amount for every 1,000 impressions served. The CPM floor, also known as eCPM (effective CPM), acts as a safeguard for publishers to achieve a certain level of revenue from their video ads. Without a CPM floor, publishers risk earning less than desired for their ad inventory, which can negatively impact their monetization efforts.

By implementing a CPM floor, publishers can establish a baseline revenue expectation for their video ads. This allows them to better plan their financial goals and ensure they are receiving a fair value for the impressions they are delivering. Additionally, setting a CPM floor provides publishers with a benchmark to evaluate the performance of their video ads and make informed decisions regarding optimization.

Yahoo’s Suggested Cpm Floor For Video Ads

According to Yahoo, a prominent player in the advertising industry, publishers should set a CPM floor of approximately $5-10 for video ads. This range ensures that publishers have a reasonable expectation for the value they can generate from their video ad impressions. However, it is important to note that the optimal CPM floor may vary depending on factors such as audience demographics, content quality, and market demand.

Yahoo’s recommendation serves as a guideline for publishers to establish a starting point for their CPM floor. It provides publishers with a reasonable range that can help them attain a satisfactory level of revenue from their video ads. However, it is essential to monitor and assess the performance of the video ads regularly to determine if adjustments to the CPM floor need to be made.

Modifying Floor Prices Based On Ad Performance

One of the advantages of setting a CPM floor is the ability to modify it based on the performance of the video ads. Publishers have the flexibility to adjust the floor prices at any time to optimize their revenue. This adaptability allows publishers to respond to changes in market conditions, advertiser demand, and user behavior.

Publishers can analyze and evaluate the performance of their video ads regularly to determine if the current CPM floor is aligned with their revenue objectives. If the ads consistently deliver high engagement and generate significant revenue, publishers may consider increasing the CPM floor to capitalize on the ads’ success. Conversely, if the ads underperform and fail to meet revenue expectations, the publisher may lower the CPM floor to attract more advertisers and improve fill rates.

By continually monitoring and modifying the floor prices based on ad performance, publishers can maximize their revenue potential and ensure their video ads are delivering the desired outcomes.

• CPM floor can be adjusted based on ad performance
• Flexibility to optimize revenue
• Adaptability to market conditions, advertiser demand, and user behavior

Publishers can maximize their revenue potential by regularly monitoring and modifying the CPM floor based on ad performance.

Apple’s App Tracking Transparency And Idfas

The forthcoming launch of Apple’s App Tracking Transparency (ATT) in 2021 has raised significant concerns and anticipation across the app development industry. ATT aims to enhance consumer privacy by requiring app users to grant individual apps permission to access their Identifier for Advertisers (IDFA). This change will significantly impact advertisers, publishers, and developers who rely on IDFA for ad tracking, attribution, ad targeting, and retargeting.

IDFA plays a crucial role in the modern ad-supported app ecosystem. It enables advertisers to target specific audiences, track users’ actions within apps, and measure the effectiveness of their campaigns. The ability to access IDFA allows for personalized and relevant advertising experiences for users.

However, with the implementation of ATT, users will be presented with a pop-up notification whenever an app requests access to their IDFA. It is anticipated that the opt-in rates for sharing IDFA will be at or below 20%. This presents a significant challenge for advertisers and publishers, as the reduced access to IDFA will limit their ability to deliver targeted ads.

Anticipated Opt-In Rates For Idfa Access

The implementation of Apple’s App Tracking Transparency is expected to have a profound impact on opt-in rates for IDFA access. Many industry experts predict that opt-in rates will be at or below 20%. This means that only a small portion of app users will grant permission for their IDFA to be accessed.

The low opt-in rates are a reflection of growing concerns around privacy and data protection. Users have become more cautious about sharing their personal information, including their IDFA, due to privacy breaches and data misuse incidents.

The anticipated opt-in rates present a significant challenge for app developers and publishers who rely on IDFA for effective ad targeting and user engagement. With limited access to IDFA, advertisers will no longer have the same level of visibility into their target audiences, leading to a potential drop in ad spending and lower CPMs for application publishers.

Impact Of Idfa Changes On App Developers And Monetization Models

The changes to IDFA pose a significant challenge for app developers and publishers who heavily rely on in-app advertising as a primary source of funding. The app development industry has thrived by providing free apps supported by in-app advertisements. However, without the ability to deliver targeted ads, developers may struggle to generate sufficient revenue to sustain their operations.

In-app advertising is highly valued by marketers due to its customer engagement capabilities and efficient targeting options. Marketers have been able to reach specific audience segments based on the data provided by IDFA. This level of targeting ensures that ads are delivered to the most relevant users, increasing the chances of conversions and generating higher revenue for publishers.

The inability to make use of IDFA will lead to a drop in ad spending and lower CPMs for application publishers. Advertisers will no longer have the same level of confidence in reaching their desired audiences, which may result in reduced budgets allocated to in-app advertising.

To mitigate the impact of the IDFA changes, developers should prepare by convincing users to opt-in to sharing their IDFA information. Research by eMarketer indicates that 70% of US consumers are willing to share their information in exchange for benefits such as saving money, discounts, or convenience. By providing compelling value propositions, app publishers may be able to persuade users to grant access to their IDFA.

Value Of In-App Advertising For Marketers

In-app advertising offers unique advantages for marketers compared to other advertising channels. It provides an opportunity to engage with a highly targeted and captive audience. Unlike traditional online advertising, in-app ads have the advantage of reaching users within an immersive and interactive environment. This increases the chances of capturing users’ attention and eliciting a positive response.

In addition to increased engagement, in-app advertising also offers extensive targeting options. Advertisers have access to valuable user data, such as demographics, interests, and behaviors, which allows them to tailor their ads to specific audience segments. This level of targeting ensures that ads are relevant and resonate with users, improving the overall ad performance and return on investment.

For marketers, in-app advertising is a powerful tool for acquiring new users, enhancing brand awareness, and driving conversions. App developers and publishers play a crucial role in facilitating these advertising opportunities and rely on the revenue generated from in-app ads to sustain their businesses.

Importance Of Idfa For Ad Tracking And Targeting

IDFA (Identifier for Advertisers) has played a crucial role in facilitating effective ad tracking and targeting within the app ecosystem. It enables advertisers to track user actions and behaviors within apps, providing valuable insights into user engagement and campaign performance. By attributing user actions to specific ad campaigns, advertisers can accurately measure the effectiveness of their marketing efforts.

• IDFA allows advertisers to track user actions and behaviors within apps
• Provides valuable insights into user engagement and campaign performance

In addition to tracking, IDFA is essential for targeting ads. It enables advertisers to deliver personalized and relevant ads based on user preferences, demographics, and interests. By understanding users’ characteristics and behavior, advertisers can create more compelling and engaging ad experiences. This, in turn, increases the likelihood of conversions and maximizes return on ad spend.

• IDFA allows advertisers to deliver personalized and relevant ads based on user preferences, demographics, and interests
• Enables advertisers to create more compelling and engaging ad experiences

The loss of access to IDFA will significantly impact ad tracking and targeting capabilities. Without the same level of visibility into user actions and preferences, advertisers will face challenges in accurately measuring campaign performance. The absence of data-driven targeting will result in less personalized ads, potentially leading to lower user engagement and reduced revenue for publishers.

“The loss of access to IDFA will have a significant impact on ad tracking and targeting capabilities.”

Uncertainty Surrounding Idfa Changes And Cpms

The impending changes to IDFA have created a cloud of uncertainty surrounding the impact on CPMs. While it is evident that the reduced access to IDFA will affect ad targeting and campaign performance, the extent of the impact remains uncertain. Industry experts have made predictions about the potential decrease in user-targeted ads within apps, ranging from 50% to as high as 90%.

The uncertainty surrounding CPMs stems from various factors, including the influence of opt-in rates, changes in advertiser behavior, and the ability of publishers to adapt to new monetization models. The drop in user-targeted ads may lead to a decrease in ad spending as advertisers struggle to reach their desired audiences effectively.

Publishers will need to find alternative sources of audience data to provide to advertisers to meet their needs for user acquisition and engagement. This may pose a challenge for smaller developers who lack the expertise in user segmentation and demographic analytics. The industry, as a whole, will need to explore new strategies and revenue sources to offset the potential decline in CPMs.

Convincing Users To Opt-In For Data Sharing And Alternative Revenue Sources

In light of the changes to IDFA, developers and publishers must prioritize convincing users to opt-in for data sharing. Research by eMarketer suggests that a majority of US consumers are willing to share their information in exchange for benefits such as saving money, discounts, or convenience. This presents an opportunity for publishers to leverage persuasive sales pitches to encourage users to grant access to IDFA.

Developers can implement strategies such as:

• Delaying the opt-in call
• Showing a pre-pop-up within the app that clearly explains the benefits of sharing data.

By presenting a compelling value proposition, app publishers can increase the likelihood of users granting access to their IDFA.

In addition to convincing users to opt-in, developers should also explore alternative revenue sources to diversify their monetization models. Dependence solely on in-app advertising may no longer be sustainable in the absence of IDFA. Publishers can consider implementing:

• Subscription models
• Offering freemium benefits
• Introducing micro-transactions
• Providing paid content to generate revenue.

Apple’s improvement of its SKAdNetwork metadata framework can also provide some replacement for ad measurement and attribution data. The framework enables ad campaigns to connect with app installs, offering a partial solution to the tracking and attribution challenges brought about by the IDFA changes.

By leveraging alternative revenue sources and optimizing their monetization strategies, app developers can navigate the uncertain landscape created by the IDFA changes and ensure a sustainable future for their businesses.

Yahoo suggests setting a CPM floor for video ads to ensure a minimum level of revenue. Publishers should monitor ad performance and adjust prices accordingly. The IDFA changes will impact ad tracking and targeting, potentially leading to a decline in ad spending and lower CPMs for publishers. However, developers can prepare by convincing users to opt-in for data sharing and exploring alternative revenue sources. Flurry Analytics provides valuable in-app user analytics that are not tied to IDFA, helping developers survive the changes and maximize revenue with strategies such as Conversion Value Analytics.

Bullet Points:

• Delaying the opt-in call
• Showing a pre-pop-up within the app that clearly explains the benefits of sharing data
• Subscription models
• Offering freemium benefits
• Introducing micro-transactions
• Providing paid content to generate revenue

FAQ

What is the average CPM for video ads?

The average cost per thousand impressions (CPM) for video ads can vary depending on various factors, including your advertising goals, budget, location targeting, and targeted audience. Generally, the average CPM can range from $5 to $20, although specific costs may fall outside of this range. For cost per view, you can anticipate spending between $0.05 and $0.30 per view. It is important to note that these figures are approximate and can fluctuate based on individual campaign parameters.

What is the average CPM for mobile app ads?

The average CPM for mobile app ads can vary depending on the platform and format. For Android devices, the average CPM is $2, while for iOS devices, it is slightly higher at $5. In 2018, the average CPM for mobile interstitial ads was $3.50, reflecting a moderate cost for this ad format. On the other hand, native ads on mobile had a higher average CPM of $10, making it one of the more expensive options available. It is important to note that these figures may change over time as advertising trends and demands evolve. Additionally, in 2016, the average cost-per-click (CPC) worldwide was $0.27, indicating the price advertisers paid for each click on their ads at that time.

What is a good CPM for video?

The ideal CPM for video can vary depending on several factors, but generally speaking, a good CPM for video is typically above the average range. In the U.S., an average CPM of 0.38 may be considered relatively typical, whereas a higher CPM, such as 4.38 in Spain, suggests a more valuable audience. However, it is worth noting that the country with the highest average CPM at the time was Mauritius, indicating that audiences from specific locations can potentially offer substantially higher CPM rates. Additionally, the length of your video can also impact your CPM, as longer videos tend to have a higher CPM due to the increased engagement and ad opportunities they offer. However, it is important to consider other relevant factors to determine an optimal CPM for your specific video.

Do video ads have higher CPM?

Video ads generally tend to have higher CPMs compared to image ads. This is particularly true for publishers with a significant video content inventory, such as an OTT service. By incorporating video ads into their content, publishers can tap into the higher earning potential that these ads offer. With their captivating nature and ability to deliver engaging experiences, video ads are often favored by advertisers, leading to higher CPMs and increased revenue opportunities for publishers.