Guide for Beginners: Start to Monetize Your Apps with AdMob

On November 6, 2012, in Android, Make Money Online, by James Liu

Several friends of mine are creating Apps to earn money on both Android and IOS platforms. Most of them provide their apps for free and use AdMob to monetize their apps. In this business model, they have meet lots of problems in the past few months, and there are still some issues they are facing now. After talking with these guys, I think it will be very helpful to share some tips about monetize free apps by AdMob with those people who want to try but haven’t tried yet.

Which Platform to Choose, Android Apps, IOS Apps or Windows 8 Apps?

This is always the first questions most beginners are facing. Most programmers talk about the cost of creating an app in different platforms. Google play developers cost is very low. To be able to distribute your products through Google Play, Google App Store, we need to spend $25.00 for one time register. For IOS developers, there is a $99.00 membership fee every year. Windows Store Apps developer account is $49.00 per year.

As my suggestion, you can choose Android platform if you have not tried to market any apps yet, or you have no any ideas about how to monetize your apps. The reason is very simple. It is cheap and you have enough time for you to catch the App development and monetization experience.

If you have a very clear vision and you know what you want to do, then Apple App store will be the best choice. Apple store platform is a very mature platform or market place for companies and developers to distribute their apps to the customers. According to the marketing summary, you can maximize your income in Apple Store. That’s why IOS developer account is the most expensive one.

As personal option, Windows Store is a very new App market. There are abount 10k apps in Windows Store, and more than 80% apps are free apps. The number is quite small, compare with Android Play and Apple App Store. There are less competitive, but the user base is quite low as well.

How Much can I Earn From AdMob Ads

Lots of people consider about the rewards to determine if they want to try this kind of business. They usually wonder how much they can earn from free apps if they try. Some developers are afraid that they will not profit from their apps, so that they decide to give up the ideas. For beginners, they really need some real data as guidelines to encourage them. Here is one AdMob income sample from my friend app. It is a weather report app. There are around 3k active users. The following statement is the 7 days earning report.

7 Days AdMob Ads Revenue Report
Revenue $19.47
eCPM $2.02
Requests 9,685
Impressions 9653
Fill rate 99.67%
CTR 2.09%

As his comments, “Free app with AdMob ads” is an acceptable business model. It will work very well if the app is original and interesting so it can retain users. In this way, it can accelerate income without accelerated downloads. Here is the latest income update:

Revenue $32.17
eCPM $2.15
Requests 14,995
Fill rate 99.79%
CTR 2.23%

How to Increase Your App Revenue?

This is the most common question for developers who try to monetize the Apps. If your app is free and your income is mainly from AdMob ads. There are several factors to affect your income.

AdMob Ads Revenue Factors
Impressions An ad impression is reported whenever an individual ad is displayed on your website.
CTR (Clickthrough Rate) It is the number of ad clicks divided by the number of impressions, page views, or queries you received.
CPC (Cost per Click) It is the amount you earn each time a user clicks on your ad. The CPC for any ad is determined by the advertiser;
Revenue Impressions x CTR x CPC

Therefore, there are only three way to increase your revenue, by increasing the impressions number, increasing the CTR or getting high CPC ads. To increasing the impressions, you need to promote your app for more installations. At the main time, You shall also encourage your current users to use your app more.

There are several elements to affect the CTR. For example, if you show the ads in a very obvious place, you may get a very good CTR result. However, ads is a double edged sword. It may also affect the app usage if you put the ads in the wrong place. That’s why lots of free apps just put their ads in the top of the screen or in the bottom. The ads content also plays a very important role to increase the CTR. But this element is out of our control.

The CPC is determined by the advertiser. Depending on what they are advertising, the CPC are quite different. Some advertisers may pay more per click than others, but others may just be willing to pay a little. Usually, the financial advertisers are will pay a lot on their ads. If your apps are severing for financial needs, you will get higher CPC.

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9 Responses to “Guide for Beginners: Start to Monetize Your Apps with AdMob”

  1. Hitesh Raviya says:

    how ti get advertisement in android app and how to Admob application

    please give me a reply positive and useful.

    how to get money from free application in google play store

    • James Liu says:

      Hello Hitesh,

      First, you cannot get money from Google Play Store by free application (without in-app-purchase). To monetize your free app with ads such as Admob, you need to apply a Admob account first. Then integrate the Admob sdk in your app and show a banner in your app.

  2. dibyendu says:

    is there any cost to monetize my app in admob,

  3. kenny says:

    very good article. May i know what is the frequency capping your friends put
    how no more than ( ) impressions per user per ( ) minutes
    can you let us know

  4. Suveer singh says:

    Dear sir how to INTEreget please describe

  5. shyam says:

    thanks a lot for adv.

    I have one doubt about AdMob ad’s request.
    My question is “Should we request more ads or less”, to increase CPC.
    I googled lot of websites but I didn’t get proper answer.

    • James Liu says:

      As my opinion, it doesn’t matter, as the number of your request ads doesn’t affect the CPC at all. Cost per Click is determined by advertiser and AdMob platform. The number of request may increase the “fill rate” or “impression”, which may increase the number of clicks.

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