App publishers who want to increase their mobile app revenue often find themselves doing some math when considering a new type of mobile advertising. They get an idea of how much an app makes per video ad, and then they multiply that by their average monthly users. We aren’t here to do the math for you, but we are here to tell you that you can increase your app revenue with mobile app video ads.

In fact, video ads are one of the best ways to increase your app’s revenue. That’s because both consumers and advertisers love video. Experts estimate that in-app video advertising spend is going to top $18 billion in 2021, and the average adult in the United States will watch two hours and 29 minutes of online video content every day. In other words, the opportunity for app publishers is enormous.

In this post, we cover mobile app video ad revenue, factors that affect it and how you can increase your app’s revenue with video. Read on to learn more.

With our mobile software development kit (SDK), Playwire helps app publishers unlock an ocean of ad revenue. Contact us to learn how you can get in on this.

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How Much Does an App Make Per Video Ad?

Let’s go ahead and answer the question we posed in the introduction: how much do apps make for each video ad? According to data from Business of Apps, the average cost per mille (CPM) for a mobile video ad in 2021 is $3.

Now, let’s qualify that. That average is simply that: an average. Dozens of factors can affect the CPMs — the cost per 1,000 mobile video ad impressions — you will actually get. 

Factors That Affect Mobile App Video Ad Revenue

You won’t know how much your app will make per video ad until you actually start running video ads, but you can get an idea of the revenue you might bring in by understanding the basic average CPM and the factors that can drive that figure higher or lower. The following are some key factors that can affect mobile app video ad revenue:

Mobile Apps Video Ad Format

In mobile app video advertising, there are plenty of types of ad units. Each of these types have their own pros and cons that can affect yield. For example, in-app interstitial ad CPMs tend to be around $3.50, according to Business of Apps. That’s about 50 cents higher than the average for basic video ads, and the interstitial format is a particularly common one in the app space.

Rewarded video ads can bring even higher average CPMs — between $12 and $15 in some cases. 

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The Genre of Your Mobile App

The type of app you have can play a big role in the amount of revenue you bring in with video advertising. That’s because some app genres lend themselves to the higher-revenue video ad formats and have more engaged users.

Mobile app games are a great example. Rewarded and interstitial video ads work well for most mobile games. For a user who is motivated to get a few extra lives or a redo on a level, watching a rewarded video ad from start to finish isn’t much to ask. Those engaged users are also likely to sit through an interstitial video ad that takes over the screen if they know they’ll be able to play the game when it’s over.

Compare that to a news or informational app that provides articles and videos for users. Rewarded video is harder to implement in this environment, and an interstitial ad might turn off some users who aren’t already highly engaged with the app’s content.

The Source of Your Video Ad Demand

Who is buying your mobile app video ad inventory? The answer can affect how much an app makes per video ad. 

Direct deals tend to bring in more revenue per impression. Typically, you can reserve premium video inventory for direct deals and use your unique access to a particular audience to command higher prices with advertisers. However, programmatic sales can often compete with direct sales in terms of yield, and they provide another advantage: you get connected with broad demand and have far fewer instances of unsold inventory. 

At Playwire, we use a combination of direct and programmatic sales to maximize video ad revenue. That way, our publishers get the best of both worlds.

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Ways to Increase Video Ad Revenue for Your App

The answer to the question of how much an app makes per video ad is a moving target. Various factors affect video ad revenue, and when you take control of those factors, you can move the target yourself. Here are some actionable tips to increase your app’s video ad revenue:

  • Push for higher viewability. If a video ad is at least 50% in view for two seconds or more, it is considered “viewable.” This is a key ad performance metric that can lead to higher in app video ads revenue when you push it higher. Experiment with techniques to increase viewability, such as docking a video player to a particular part of the screen as the user scrolls or implementing interstitial or rewarded video ads.
  • Do header bidding. Header bidding is one of the most important ad tech innovations in the past several decades. If you’re not already using in-app header bidding to sell your ad inventory, starting can send your app’s revenue skyrocketing. Check out our complete header bidding guide to learn more.
  • Autoplay video ads. Want to get more video ad impressions in your app? Think about autoplaying videos and video ads. When you autoplay, you have a higher chance of getting more impressions out of every user. And that means more revenue. Just make sure to weigh this choice with the effect it will have on user experience.
  • Adjust your ad network. All ad networks are not created equal. Some are better than others for particular types of apps. If a particular ad network isn’t delivering the demand you expect, see if there is another ad network out there that does. There are plenty to choose from, and the right combination can make a huge difference in your app’s video ad revenue.
  • Work with an all-in-one video ad platform. Save time and grow your revenue with a turnkey revenue amplification platform like the one we’ve built at Playwire. Leave the yield optimization, direct sales, programmatic tech, and even video content to the pros while you focus on creating great content for your audience.

Maximize Your Mobile App Video Ad Revenue with Playwire

How much does an app make per video ad? That depends on a lot of factors, one of which is the ad tech partner you choose to work with. At Playwire, we pride ourselves on our demonstrated history of bringing app publishers’ ad revenue to previously unseen heights. We do this with our proprietary revenue amplification platform, world-class video player and on-brand, engaging video content.

To partner with Playwire and increase your app revenue with mobile app video ads, all you have to do is get in touch. Reach out to our team by filling out our online contact form.

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An in-depth look at video ads for web and app publishers