Advertising Revenue
| Advert location | Click thru Rate |
| Top Banner Main Page | 0.23% |
| Side advert Main Page | 0.30% |
| Custom | 0.37% |
| Interstitial | 5.70% |
| App List | 7.14% |
| Panels | 12.60% |
((Bea.F.,2013)
Prices might vary according to the location of the advert. Clearly, advertising your product or services on the panel would cost little bit more than the top banner as CTR on panels are a lot more.
Advert Revenue Calculation
This is a hierarchal structure and you will see number of users decreasing as calculation move forward. Let’s depict the calculation per 30,000 users who will sign up to the application.
According to the Stanford venture Lab 90% of the users download the application (sign up). Out of this 90% – 80% will have Internet connection on a regular basis. So let’s do some calculations now based on these figures.
0.9 X 0.8 X 30,000 = 21,6000
So now our actual users are only 21,600 people
Now lets focus on time. 5 Minutes = 600 seconds/ 30 seconds = 10 (To find ad depiction)
10 X 21, 600 = 216,000 ad representation
According to Stanford venture lab only 10% of the people actually carry on using the application after download and out of that only 80% actually have internet connection at all times.
30,000 X 0.10 X 0.8 = 2,400
According the lab normally people use the application for about 10 minutes a day, which is a lot more when it comes to social media but we will stick to 10 minute for the sake of calculations just say for 25 days a month.
10 X 25 = 250
Each advert lasts for 30 seconds so now we are going to multiply 250 by 2 = 500 ads per person.
Now we are going to multiply our actually users with potential usersÂ
8000 X 500 = 4,000,000
Calculate the revenue per 30,000 usersÂ
21,6000 + 4,000,000 = 4,216,000
if we say £2 per 1000 advert
4,216,000/ 1000 X 2 = £ 8432 per 30,000 users
(Gleeson.P.,2015)
 Reference
Bea.F.,2013. What is an average mobile ad click-through rate?. Available from: http://appflood.com/blog/average-ctr-by-ad-formats [Accessed on 26th april 2015]
Gleeson.P.,2015 . How to calculate mobile ad revenue. Avaliable from: http://smallbusiness.chron.com/calculate-mobile-ad-revenue-74440.html [Accessed on 26th april 2015]
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