This release enables app publishers to measure revenue generated from users who engage with in-app advertising. User-Level Ad Revenue has been the missing ingredient that enables marketers to measure user lifetime value (LTV), and optimise retargeting and cross-promotion campaigns.
By 2020, mobile apps are predicted to generate $188.9 billion in revenue via app store purchases and in-app advertising. Ad revenue, generated from in-app advertising, has gained momentum as a viable monetisation model for many app publishers: estimates predict a 60% increase in apps monetising through in-app advertising in 2019.
“We are excited to introduce Ad Revenue on a user-level together with our partners. These granular, detailed insights into ad revenue and where it actually comes from enables marketers to optimise user acquisition campaigns and drive ROI more effectively,” explained Paul H. Müller, Co-Founder & CTO at Adjust.
Today’s industry standard is based on reporting aggregated and averaged ad revenue data. This prevents app publishers from tying back ad revenue data to user acquisition sources or breaking it down to any segmentation level. The data they receive is aggregated across an entire network, without valuable, granular metrics.
As such, in-app ad revenue is shown as equally distributed among a user base; however, the majority of this ad revenue is actually generated by a small group of users – referred to as “ad whales”. These ad whales often make up 80% of the advertising revenue for mobile apps.
“Unlocking User-Level Ad Revenue for ironSource mediation partners, and making it available and actionable through Adjust, allows marketing teams to run true ROAS campaigns – combining full user level IAP and ad revenue data. We’re excited to release this to all of our partners and enable them to accelerate their growth in a truly ROI-positive way,” said Yevgeny Peres, VP Growth Developer Solutions at ironSource.
Ad Revenue gives app publishers an easy and privacy-compliant way to tie back monetisation revenue to the source of the user and compare with the cost of acquiring those users. With these new insights, marketers can now calculate average revenue per user (ARPU) and lifetime value (LTV).
This data can be used to calibrate their ad spend more efficiently, hone optimisations to reach users that click, and retarget effectively. User-Level Ad Revenue extends Adjust’s continued support of app marketers’ activities with enhanced transparent and accurate data.