SOOMLA: 80% of advertising revenue generates 20% of users
Pareto’s law also applies to earnings from mobile advertising: 80% of revenue is generated by 20% of application users, according to the analytical firm SOOMLA.
The company’s report “Monetization of mobile advertising in the second quarter of 2017” clarifies that the 80/20 rule works in relation to mobile advertising revenue. The contribution of 80% of users to the total revenue of the application can be 1%.
The difference between the eCPM of the top in terms of audience views and the eCPM of other users can be tens of dollars.
The ratio of eCPM indicators of 80% and 20% of the mobile advertising audience
Rewarded advertising generates 18 times more impressions from the active core of 20% of users than the rest of the audience.
According to SOOMLA CEO Yaniv Nizan, advertising networks often mislead advertisers by giving them an average eCPM.
This gives the impression that the effectiveness of mobile advertising monetization is approximately the same for all users, although in fact this is not the case.
During the research, SOOMLA analyzed more than two billion actions in 25 different applications around the world.
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