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I am considering entering the smart phone app market by creating an ad-supported app. Where I can find statistics showing the average income per ad impression? (not per click).

Does anybody have hard facts or experiences with this?

Edit: I modified this question to be generally about smart phone apps, because I guess it is similar on all the big platforms.

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Check this out as a starter: gigaom.com/2010/06/22/… – user3997 Feb 6 '11 at 19:19
Very interesting reading! If you post it as an answer, I will upvote it, and I might accept it if nothing more specific shows up. – David Feb 8 '11 at 9:47

3 Answers

up vote 2 down vote accepted

According to this review you would make about $1.30 per 1000 impressions on iOS and slightly more on Android. This is at the fill rate of 80%. I suggest using something like MoPub so that you can plug in multiple networks for your app/region/demo to get the best rates for all impressions.

http://techcrunch.com/2011/07/22/android-vs-ios-the-heated-battle-over-mobile-advertising-infographic/

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Thank you very much for your answer, but isn't it the other way around, that 1.3$ is for Android and 1.7$ for iOS. – David Jul 27 '11 at 16:51

David I had the same question you did before I released my app and with a few thousand ad impressions per day using AdMob I have only seen consistent payment for clicks and not for impression. Also the Ad fill rate also seems to range between 60%-80%. This could be due to a variety of issues (newness of app, high repeat user, etc.) so I am holding off on judgment until I have at least 10,000 users.

My initial opinion on ad based product payment especially for an app with a few thousand users is not that good. Unless you have a rockstar app I would target a figure of less than $1 per thousand.

I hope this helps.

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That was exactly the kind of answer I was after. Do you mean less than 1$ per thousand per month? – David Feb 13 '11 at 14:09

Price is determined usualy by few factors - target group (who is the audiance), reach (how large it is and how big portion of the target group you can reach), sociodemography (in general what you know about them - age, sex, salary, education etc).

Two pricing models are common CPM (cost per mile = 1000 impressions) and CPC (cost per click). So best way how to set up starting price is compare your application reach and target group to some available pricelists. Let you try for example AdMob - www.admob.com. If your application is really specific (vertical market) price can be 100-500% higher compared to untargeted traffic.

At the end price is defined also by demand, so question is if there are advertisers, who are willing to buy this advertising space. You can make offer directly or you can cooperate with some media agency, what will offer the space instead of you and you can still work on improving your application.

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Thanks for your answer. I basically know all these factors, it is though, good to have them stated in a clear way. All I need now is a rough average price per impression, so I can start calculating whether it is worth it to develop an app. – David Feb 13 '11 at 11:09

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