At this time i have few paid features in android app. I'd like to estimate potential income of using AdMob ads in the app and choose the best strategy: paid features or ads.
Using AdMob, Rich started earning $100 a day, which was one month after launching it. He now has several slot machine apps in the app store. App company HeroCraft Ltd, makers of the hugely popular game Farm Frenzy (currently with over 10 million downloads), has increased app revenue by over 200% using AdMob.
An estimate of the revenue that you receive for every thousand ad impressions. eCPM is calculated as (Total Earnings / Impressions) x 1000. The total number of times users click ads shown in your app.
How much money do apps make per ad? The amount of money apps make per ad depend on both the genre of the app and the ad unit. For rewarded video ads, the average revenue per impression in the US is $0.02. The average revenue per completion is $0.16 for interstitials and $2.50 for offerwall.
1,000,000*0.05 = $50,000 per day. That's sweet $1.5M per month. How can I get more 1,000 plus downloads for an Android app in the first month?
It's quite impossible as far as I know to really estimate things like this. Your payment rate in Admob depends on a lot of things like fillrate and click-rate, but in general you can be sure it will be pretty low. Basically you're talking about figures as low as 0.04 dollar per 1000 views.
However, the real question is if your features/app are worth paying for, especially assuming that your app and developer account aren't well known and you're not picked out by Google into the spotlight of the first page.
Basically this is all up to your own judgement, but as I see it the choice to make when looking for max income, would be to do both.
If you look at most games (Take per example Angry Birds, Ruzzle, Wordfeud, DrawSomething etc) they launch both options: 1 with ads so people can try your app out, and 1 paid version for the -much smaller - group of people that are willing to pay.
The same ofcourse can be used with in-app payment features, by simply adding a feature to discard the banners when bought.
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