In a normal year, April, the start of Q2, is when eCPMs typically continue to climb back up after the post-holidays Q1 dip. But this year as we all know is unlike any other. The uncertainty caused by the pandemic is affecting how businesses are spending their advertising budget around the world. So how is this affecting eCPMs in April?
Well as expected, instead of rising, the eCPMs in April showed a general decrease—although with some exceptions.
Let’s start with the good news. The average eCPMs of rewarded video ads were mixed and relatively stable compared to the other ad formats.
For example, in the U.S. their average eCPMs on iOS actually increased in April, increasing from $15 in March to $17.32 in April. Other major markets like the U.K. France, China and Australia remained about the same as in March. While others like Japan and Russia saw their eCPMs decreased from $14.38 to $12.03 and from $3.33 to $2.89 respectively.
On Android, however, rewarded video eCPMs decreased slightly in numerous countries. The U.S. remained around the same as March at $10.12. But many countries affected by the crisis like Russia, France, Spain, Turkey, Germany, the U.K. and among others saw their eCPMs decrease by up to $0.50.
On the other hand, full-screen ads saw their eCPMs trending down in April on both iOS and Android.
On iOS, the decrease ranged from 9% to 19% in countries like Russia, France, the U.K., Canada, Japan, China and Australia. The U.S. only decreased slightly from $9.17 to $9.06.
On Android, the decrease was slightly higher than on iOS with ranges from 9% to 22% in countries like Russia, France, Germany, Spain, the U.K. and even the U.S.
Banner ads showed the most notable eCPM decrease compared to the other formats on iOS and Android.
On iOS, in many countries like the U.S., Russia, Japan, China, France, Brazil and the U.K, the eCPM decrease in April ranged from 20% to 34%. While countries like Canada, Spain, and Italy had minor decreases of just a few cents.
The results of banners on Android were similar. Countries like the U.S., Russia, France, Brazil, the U.K., and Japan saw their eCPMs decrease by 25% to 35%. Some countries, like Spain, India and Italy went down by just a cent.
Looking at the numbers, the drop in eCPM was slightly more notable on Android than on iOS.
Tips to soften the impact
So given these results, what can you do to soften the impact?
Taking a closer look at one ad network in particular, AdMob (which is also the biggest one), we notice that it is attributed for a big chunk of the ad impressions as well the decrease in eCPMs across all the ad formats on both iOS and Android. (Access the full ad networks’ eCPMs here — sign in required)
However, not all ad networks saw their eCPMs go down in April. Facebook Audience Network, for example, actually increased their rewarded video eCPMs by 9% in iOS.
That’s why it is important to diversify your ad demand sources by having as many top ones as possible inside your ad mediation stack. Should one network’s performance go down, another one should be able to fill its place with a higher eCPM ad when available. This is something Appodeal’s ad mediation already does automatically when it evaluates ad bids from over 70 ad demand sources.
If you are using Appodeal already, make sure to have all of the ad networks enabled to increase potential of having higher eCPM ads be served. If you are not using Appodeal yet, you can sign up for free and start monetizing with 70+ ad demand sources in an hour by integrating just one SDK.
Another action you can do to soften the impact is to find ways to best incorporate as many ad formats as possible within your app. That way, you are not risking putting all of your eggs in one basket should one ad format perform worse than others.
Banner ads in general tend to be popular with brand advertisers, which have put their advertising on hold en masse. Since so many physical stores are closed during this crisis, it is not surprising that banners are not performing as well as rewarded videos, which tend to appeal more to performance advertisers.
On a glass half full perspective, lower eCPMs also means it is now cheaper than usual to run user acquisition campaigns. If your app is a gaming one or one that can be useful during the quarantines, why not consider running a new UA campaign? With so many people stuck at home with not much to do, your app might just be what they are waiting to discover.
Also, if you need any help to optimize your ad mediation stack or to ensure you are monetizing with Appodeal at its fullest potential, our support team is always here to help!