Friday, April 22, 2016 3:28:02 PM
REDG Projected Revenues
PowFolio Projected Revenues
How to Calculate Ad Revenue Per Download
Step 1
Calculate ad impressions per 100,000 users who download an app, test and discard it. A Stanford Venture Lab presentation notes that 85 percent of 100,000 users install the app and then delete it after about five minutes of use. About 95 percent of these have an Internet connection needed to download ads. Multiply 0.85 by 0.95 by 100,000 to determine the number of users per 100,000 who download apps with ads and then delete them. This equals 80,750. Divide five minutes by 30 seconds to find ad impressions, which equals 10. Multiply 10 by 80,750 users to find total impressions. This equals 807,500.
Step 2
Calculate ad impressions per 100,000 users who download an app and retain it. The Stanford Venture Lab presentation notes that 15 percent of 100,000 users install the app and retain it. Ninety-five percent of these have Internet access. Multiply 100,000 by 0.15 by 0.95 to find the number of users with Internet access who retain the ad, which equals 14,250 users. The lab also notes that users who retain apps use them for about 10 minutes a day (this information is based on games not a reader app so you can practically double this) for 21 days. Multiply 10 times 21 to find total minutes, which equals 210. Each ad lasts 30 seconds, so multiply 210 minutes times two to find total ads, which equals 420 ads per user. Multiply by 14,250 to find total ad impressions per 100,000 users who retain downloaded apps with ads. This equals 5,985,000.
Step 3
Calculate revenue per 100,000 users. Add 807,500, the number of ad impressions by users who don't retain the app, and 5,985,000, the number of ad impressions by users who do. This equals 6,792,500. Use Stanford Venture Lab's average revenue estimate of $3 per 1,000 add impressions: 6,792,500 impressions divided by 1,000 times = 6,792.5 X $3 equals $20,377.50 mobile ad revenue per 100,000 app Download's.
(Remember we expect them to be on it lot longer than 10 minutes so it could even be as high as $45,000.00)
This is just the base and does not include subscription or up-sells
So with just a mere five million download this product can generate $2,250,000 in a very small window of its launch date!
PowFolio Projected Revenues
How to Calculate Ad Revenue Per Download
Step 1
Calculate ad impressions per 100,000 users who download an app, test and discard it. A Stanford Venture Lab presentation notes that 85 percent of 100,000 users install the app and then delete it after about five minutes of use. About 95 percent of these have an Internet connection needed to download ads. Multiply 0.85 by 0.95 by 100,000 to determine the number of users per 100,000 who download apps with ads and then delete them. This equals 80,750. Divide five minutes by 30 seconds to find ad impressions, which equals 10. Multiply 10 by 80,750 users to find total impressions. This equals 807,500.
Step 2
Calculate ad impressions per 100,000 users who download an app and retain it. The Stanford Venture Lab presentation notes that 15 percent of 100,000 users install the app and retain it. Ninety-five percent of these have Internet access. Multiply 100,000 by 0.15 by 0.95 to find the number of users with Internet access who retain the ad, which equals 14,250 users. The lab also notes that users who retain apps use them for about 10 minutes a day (this information is based on games not a reader app so you can practically double this) for 21 days. Multiply 10 times 21 to find total minutes, which equals 210. Each ad lasts 30 seconds, so multiply 210 minutes times two to find total ads, which equals 420 ads per user. Multiply by 14,250 to find total ad impressions per 100,000 users who retain downloaded apps with ads. This equals 5,985,000.
Step 3
Calculate revenue per 100,000 users. Add 807,500, the number of ad impressions by users who don't retain the app, and 5,985,000, the number of ad impressions by users who do. This equals 6,792,500. Use Stanford Venture Lab's average revenue estimate of $3 per 1,000 add impressions: 6,792,500 impressions divided by 1,000 times = 6,792.5 X $3 equals $20,377.50 mobile ad revenue per 100,000 app Download's.
(Remember we expect them to be on it lot longer than 10 minutes so it could even be as high as $45,000.00)
This is just the base and does not include subscription or up-sells
So with just a mere five million download this product can generate $2,250,000 in a very small window of its launch date!
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
