Knowledge Hub: Ad Tech 101

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What Is Ad Revenue?

Ad revenue refers to the money generated through advertising. It is calculated by getting the ad impressions and multiplying it by the effective cost per mile (eCPM).
Impressions x eCPM = ad revenue


Developers would commonly use multiple app metrics, such as Average Revenue Per Daily Active User (ARPDAU), Average Revenue Per User (ARPU), and Average Revenue Per Paying User (ARPPU), to determine their ad revenue.
It is critical for app developers to come up with a robust ad monetization strategy to ensure that their apps would have high ad revenue. As such, it is necessary for them to boost their ads by putting high-performing ad units where they would effectively convert.


What is an Ad Unit?


An ad unit is a type of ad monetization strategy that developers integrate into their apps and displays. An ad unit is typically associated with a pay per click (PPC) campaign, wherein advertisers would get charged every time their ads get clicks.
Some of the ad units commonly used by advertisers are banner ads, rewarded video ads, interstitial ads, playable ads, and offerwall ads. Each of these ad units would have a different look and behavior.


What Is an Ad Exchange?


An ad exchange is a digital marketplace that serves as a platform where advertisers, publishers, and networks buy and sell advertising space ranging from display, video, and mobile ad inventory in real-time.


Ad exchanges are a method in which both advertisers and publishers can level out the playing field since they use the one similar platform, avail of the same services, and use a unified method. With it, it is easier to exchange information, set competitive prices, and serve advertisements.


An ad exchange is open to anyone as long as they have approval from the platform owner. Advertisers and agencies would often use demand-side platforms (DSPs) or other bidding technologies, but ad networks would most commonly buy ads through exchanges.


What Is an Agency Trading Desk?


An agency trading desk (ATD) is a centralized management platform that consists of a set of services provided by a programmatic media agency. This technology is often applied over a demand-side platform (DSP), with the primary goal of helping clients enhance their advertising performance and get more value from their advertising efforts. Some of the services involved within the trading desk include planning, buying, managing, and streamlining programmatic ad campaigns.
Advertisers often use an agency trading desk because it allows them to buy media at a lower rate compared to having in-house management of campaigns. Further, ATDs offer additional features, including measuring results and reporting audience insight to their clients.


What Is an Audience Extension?


Audience extension is an advertising technology that allows publishers to provide advertisers access to their premium site audience, often in low inventory in other sites and platforms like ad exchanges, demand-side platforms (DSPs), and ad networks. This way, it is easier for advertisers to identify characteristics from an identified audience segment and capture a new audience sharing the same features.
One way of performing an audience extension is via cookies. Cookies allow publishers to track and gather data about their visitors. Advertisers can glean useful insights that help them develop improved advertisements for identified users. This method is good for enhancing an ad’s conversion rate.


What Is a Banner Ad?


A banner ad is a rectangular graphic advertisement displayed on a webpage, which can stretch across the top, bottom, or sides of an online media property or website. They are often image-based that can include a static image or a dynamic multimedia object. Its main goal is to bring traffic towards a website by linking to the advertiser’s website. It can also be used to promote a brand.


A banner ad is a popular form of advertising, particularly in mobile apps, because they offer quick implementation for app monetization strategies. They are simple to use and can be easily used for a number of app categories.


What Is Brand Safety?


Brand safety is defined as the method of keeping a brand’s overall reputation free from any issues or problems when they do online advertising. This means advertisers and publishers must ensure that they do not place ads next to content or websites that would prove harmful to the brand and damage their reputation.
Brand safety means doing adequate targeting and employing appropriate measurement solutions to verify, block, and manage the content that the ad campaigns will run on. Often, ad servers and ad exchanges will have brand safety tools in place to prevent such occurrences.


What Is a Connected TV?


Connected TV is any TV device that can be connected to the Internet and stream videos, either individually like a Smart TV or via an external device, including AppleTV or Roku, to name a few. It allows users to access content way beyond what is typically offered by a regular cable provider.


In advertising, connected TV is another effective method of reaching out to their target audience by running ads during premium, ad-supported shows offered by top-tier networks.


What Is Conversion Rate?


Conversion rate (CVR) in in-app advertising refers to the percentage of users who sees an ad within an app, clicks on it, and converts. It is important for advertisers to know how many of their target audience actually converted to become users, making it an excellent metric for measuring the performance of an ad.
A high conversion rate is an indication of a successful ad campaign. It simply tells advertisers that target users want what you offer and are willing to get it.
Note, however, that the “conversion” would highly depend on the business model and the industry.


Here is the formula for calculating CVR:


CVR = (number of users who converted / Number of users who clicked on the ad) x 100


What Is Cost Per View?


A cost per view (CPV) is the bidding method used for video campaigns wherein you pay for a view. Each view would be counted if the viewer interacts with the ad or watches the whole duration of your video ad. Video interactions would often include clicks for ads with call to action (CTA) overlays, companion banners, or cards.
Initially, the cost per view ad campaigns are specifically reserved for brand awareness advertisers. Over the years, most performance app advertisers shifted to buying based on the cost per view format. Since they often fail to get in-app inventory and scale their campaigns through cost per install campaigns, they started buying based on the same pricing model as that of brand advertisers.
Here is how you can compute for cost per view:


CPV = Advertising cost / Video Views

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Pranav Kataria

Associate Director, Programmatic Strategy

As the Associate Director of Programmatic Strategy, Pranav brings over 8 years of experience in the adtech industry working with Publishers, DSPs, Agencies, and Advertisers from global regions to improve their monetization, performance, and strategies. With great understanding of the mobile market, his expertise lies in analytics, account management, strategy, and ad sales. With this refined skill set, he brings customer-centric mindfulness that enables growth and innovation.

Before joining AlgoriX, his keen business perspective and skills have earned him opportunities to work across different organizations and verticals in the advertising ecosystem; be it improving the processes, sales enablement, and managing client relationships.

Ray Xia

VP, AlgoriX Partner Studio

Ray Xia was a mainstay at Tencent Games, having worked at the company for 13 years. There, he took on various roles including backend developer, application development manager, and game producer. During this time, he actively participated in the development and operation of popular titles such as QQ Pet, QQ Pet Fight, and games involving the Naruto franchise. To date, these games have over 10 million daily active users. Through this rich well of experience he has accumulated covering all aspects of game development and operation, he aims to spearhead more creative endeavors via AlgoriX Studios.

Naomi Li

VP, Research and Development

Naomi Li has a decade’s worth of experience in research and development for the adtech industry. She started her career at Baidu where she was mainly responsible for the Automation Testing of the Baidu Fengchao Ad Search Engine. There, she focused on the fields of overlapping experiment infrastructure, rich media ads rendering, and ad antispam technology. Moreover, as part of Baidu’s International Group, she led the research and development of various monetization and advertising mechanisms for Baidu’s overseas app store, SDK, and AdNetwork. At present, she is responsible for the overall direction of AlgoriX’s R&D efforts, which include product planning, technical architecture design, and talent training.

Frederic Liow

SVP, Revenue Growth & Strategy

A veteran in the digital advertising industry, he began his career during the early days of the dotcom era. To date, his passion for the digital industry is still as strong as ever (and getting even stronger). Spanning twenty years of his digital career, he has worked for leading companies like Nielsen, MRM McCann, Omnicom Media Group, Millward Brown and Smaato. Currently, Frederic is the revenue officer for AlgoriX spearheading global revenue growth, business expansion and strategic partnerships. He has set up and built AlgoriX’s global mobile ad exchange, hiring talents, establishing best practices, and injecting global industry standards into the company. Prior to his current role, he was the Head of Demand for Smaato, overseeing the demand business and operations in APAC. Frederic is currently based in our Singapore HQ.

Xinxiao Guo

Chief Operation Officer

Equipped with a decade’s worth of experience in global product operation as well as a deep understanding of emerging markets, Xinxiao brings her expertise in mobile traffic monetization and programmatic advertising to the table. Before her role at AlgoriX, she was a core member of iQIYI’s research and development unit. After that, she moved to Baidu as Head of Programmatic Advertising.

At present, she is AlgoriX’s co-founder and Chief Operation Officer. Together with the team, she aims to help game developers effectively reach global audiences and implement better monetization strategies.

Ruiz Xie

Chief Executive Officer

With nearly 20 years of business experience, Ruiz Xie founded AlgoriX with the vision of creating a global advertising platform and entertainment ecosystem. Through AlgoriX’s services, he aims to create a more inclusive tech ecosystem by providing customized solutions that meet the needs of businesses at every stage. At the same time, through AlgoriX Studios and its third-party partner studios, the company is currently bringing to life a greater goal of providing a comprehensive entertainment platform for people worldwide, which covers games, IP, comics, movies, and more. At present, he leads nearly a hundred employees with concrete plans to expand the company by establishing more offices worldwide.

Before founding AlgoriX, Ruiz Xie joined CoreMail in 2002. There, he created the first Ajax version of the mailbox in China for NetEase, which was the largest Internet company in China at the time. After that, he joined Tencent in 2005 and contributed to the creation of Tencent Games while also building a large scale distributed storage system. In 2013, he moved to Baidu where he took part in developing Baidu International’s overall architecture and search advertising system. During his tenure, he was also the Chairman of the Baidu Global Technical Committee and Baidu’s chief architect.