Ad revenue is the money apps produce from in-app advertising. This revenue is calculated by multiplying ad impressions by eCPM.
Ad revenue = No. of Impressions * eCPM
To measure their ad revenue, app developers should consider other app metrics including ARPDAU, ARPU, and ARPPU.
However, there are many different types of ad, leading to a variety of revenue. In order to distinguish each source of income, app developers use reporting tools, so they can learn which sorts of ad placements make the most money. This data advises better app monetization decisions. Therefore helps developers form a solid ad monetization strategy: what type of ads to put in. The key to boosting ad revenue is placing high-performing ad units, such as rewarded video ads and playable ads, at high-converting points in the app flow.