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The down side is that they may loose some extra revenue, if their app or website audience is really interested in a product or service they advertise.
For that case CPC model would allow them to make more money.
With the number of mobile apps that continues to increase exponentially, mobile app advertising has a potential to replace mobile web ads completely.
Today all highest paying mobile ad networks are laser focused on mobile as the fastest growing digital advertising sector.
This shift has even coined a new term – in app advertising.
This type of a business model presents more opportunities for publishers to monetize their inventory on one hand and more options for advertisers to grow their business on the other.
The pioneer in the mobile ad networks space was Ad Mob, that really took off after its acquisition in 2009 by Google, Inc.
Over the years, some of the largest mobile ad networks were acquired by other major players in the field, like, for instance Flurry and Bright Roll by Yahoo, Mo Pub by Twitter, Millennial Media, by AOL and Live Rail by Facebook.
With CPC (cost-per-click) model an advertiser is charged for each click made on her or his mobile ads.
This model works better for advertisers, because it allows them to pay only for instances when an interest to their product or service is explicit (their ads were clicked) and, as mentioned above, in some cases may work for publishers as well.