There are many methods that can be used to monetize one’s app – from in-app purchases to “lite vs full” versions to other complex distribution methods. However, one of the most popular methods today is delivering a free app with in-app advertising, which keeps the app free, but provides the developer with ad revenue.
All of this because the professionals can’t afford to focus solely on the mobile web-based advertising – the production and development of apps keeps rising, and the majority of mobile users are spending most of their “mobile” time using apps.
At the same time, the situation on the market is not really easy for the developers too – there are over two million apps on the market (as of June 2016), which is a huge number, and at the same time only about 3% of developers and publishers manage to profit from their hard work. Therefore, various app monetization techniques must be taken into account, as well as learning how to promote apps better (like promotion of mobile apps on YouTube).
Why In-App Advertising?
Compared to mobile web advertising, in-app ads allow you to continuously receive the revenue compared to standard purchases, you won’t have to incentivize the in-app purchases, or make several version (e.g. “lite”, “full” and “gold”) with separate functionality to convince the user to buy an upgraded version.
There are multiple reasons to use it today:
- Constant visibility
The audience will see and click on the mobile ads in most cases. About 90% of consumer online mobile time is spent using mobile apps – ensuring that the ads are implemented and visible is important to increase ROI and reach the ad goals.
In your case, all of this works towards one goal – to drive the revenue to you and keep you in business.
- Improved attribution
Marketers know that mobile advertising attribution is very important, as it helps the marketers measure the user’s interactions within it. Realization of the user behavior leads to more conversions and higher ROI when it’s properly used to shape the marketing campaign.
- Better targeting options
The targeting in mobile apps can be enhanced by collecting and analyzing the key data signals, which are important for understanding the engagement with the ads, and helps target the key customers on a very personal level.
This means that mobile app ads are useful both for the developers of the said app but also for marketers working with popular brands and anything that is promoted today through these ads. It’s an ad platform and a method of mobile app monetization in one complete package.
However, there is one big con that remains a massive problem even today – not all ads are created in the equal way. This means that you need to always keep that in mind. Figure out which sizes and types are working with your target audience and which don’t. For example, standard mobile banner ads are the most popular due to the large inventory and cheap production costs, the truth is, the engagement rate in case of these ones is the lowest in the advertising industry, because the areas where they appear are easy to ignore by the user.
That’s why you need to test the in-app ads and see which ones will drive the users towards you. Mobile application monetization can be a powerful tool if you implement everything right, but it takes some time before you gain the loyal user base and find the best combination of the ad fields. It’s a good idea to spend some time and test everything – after all, it’s only good when it yields good results.