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What is a good way to estimate in-app ad revenue?

Hi, I'm developing an app that displays videos of a length set by the user. I want to deliver brief banner ads during the videos. Can someone help me figure out how to estimate ad revenue?

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Chris Carruth
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Chris Carruth Advisor
VP/Director. Strategy | Business Development | Operations | Product | Solutions

You can try to find comps for similar online video services..albeit you must be careful of both timing (when you could actually interest an advertiser), the rate (which is impacted by quality of viewer, conversion rates, etc)and whether the revenue is based onviews, length of time viewer is on the page or even if it is based on click thrus as well.

I am not an ad guy and others could speak to the details, but in gaming what is reportedfor pure ad revenue (not affiliate marketing revenue) is around 2% - 5% of revenues once you get traction and sufficient viewers, which used to be around 1M.

Would love to hear what some of the online ad/marketing experts say....



Scott Elrod
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Scott Elrod Entrepreneur • Advisor
mHealth technologist☁ex-COO/CIO@Cloud 9-tech for behavioral health■ex-CIO@AmeriDoc(now Teladoc) healing 1.5M patients
check out ad-revenue and CPI CPC ad network service companies (think of them like Nielson's TV ratings for apps)
www.Fiksu.com
www.InMobi.com
Next you're estimated revenue would be either which type of industry your viewer is in, or which type of video he is watching.
I'd say the CAC from other mobile verticals would be a decent guess as to how much revenue you can expect to extract from your mobile viewers.
The real question you should be asking is, "Why would a company wish to purchase ads on my videos via an ad network?" That answer is either because you have a select audience, or your videos are returning a better CTR for them.
If you know your viewer's CTR tendencies, you can estimate your corp's ad revenue based on Fiksu and InMobi's current ad network charts. Simply adjust your average monetization per user up, or down, based on your viewers' rank compared to peers.
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