A tool designed to estimate the income potential of a mobile application based on advertising. These tools typically consider factors such as user base size, user engagement metrics, ad format choices (banner, interstitial, video), and the average revenue per mille (RPM) for ad impressions. For instance, a calculator might project revenue by multiplying the number of active users by the average number of ad impressions per user per day, then multiplying that result by the estimated RPM and dividing by 1000.
The utility of such a tool lies in its ability to provide app developers and publishers with a preliminary understanding of the financial viability of incorporating advertising into their applications. This information is valuable in making informed decisions regarding development resources, marketing strategies, and monetization approaches. Historically, the complexities of predicting ad performance necessitated reliance on industry benchmarks or expensive consulting services. These automated calculation aids democratize access to revenue forecasting, empowering smaller development teams.
