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How to do App Monetization Right

Ravindra
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Like all creators, developers want to form enough profit with their app to justify all that employment they put into it. during this article, the choices you've got as a publisher and which tools will assist you with mobile ad monetization are going to be explained.

Mobile Ad Monetization

Ad monetization refers to the making of cash from a mobile app without charging users for it altogether. Most users hesitate when asked to buy apps since the overwhelming majority of them are available freed from charge. However, consistent with The Verge, free apps are the source of 98 percent of Google Play revenue.

There are a couple of different models to follow when monetizing your app without charging your users for it:

  • Collecting user data and selling it to 3rd parties, usually advertisers
  • In-App Advertising
  • Freemium Apps, here the essential version of the app is free, though the user can upgrade to a premium version with additional features.
  • In-App Purchases

In this article, the choices of monetizing a mobile app through in-app advertising are going to be the main target .

Which sorts of Ad Monetization exist and what tools are you able to use?

In the following, we'll explain differing types of ad monetization in greater detail. Additionally, we collected a couple of tools to assist you implement app monetization into your marketing strategy.

In-App Ad Monetization

With in-app advertising, app owners have the chance to sell advertising spaces to advertisers or publishers and make a profit with their app. Mainly, the real-time-bidding market controls and determines this whole process. this suggests , whenever the app is loading, the very best bidder of a real-time auction can place his ad within the sold advertising space of the app. you'll provide your own advertising spaces for advertisers through ad networks or ad exchanges.

So, the most idea of in-app advertising is placing a banner or the other sort of advertising inside an app. the most important advantage of in-app advertising is that the direct interaction of the user with the app because the ad is displayed. this is often why most of the people will react to the ad, as against traditional display advertising where it'd even be overseen. the most problem here is that the banner blindness of the many users, which suggests that users ignore banners altogether or maybe get irritated by them, which degrades the user experience. Therefore, you've got to take care and balance the quantity of advertising and content. Should the user feel restricted by it, he/she might react annoyed and abandon the app

Thus, the success of in-app ad monetization depends on your ability to evade banner blindness and to balance advertisement and content.

Native Ad Monetization

You can describe native advertising as paid content that matches a publication’s editorial standards while meeting the audience’s expectations. Although, some people view it as some quite deception since advertisements are hidden between generic content, as you match them by appearance. Some even compare it to product placement.

Defined by the International Advertising Bureau, these are the six main ad units for Native Advertising:

  • In-Feed Units
  • Paid Search Units
  • Recommendation Widgets
  • Promoted Listings
  • In-Ad (IAB Standard) with Native Element Units
  • Custom Ads

Since native advertising is comparatively new, its technique isn't as mature as display advertising quite yet. you'll tell, because there are not any definite options to optimize or analyze its success or to focus on one specific audience.

Always find the proper balance between ads and relevant content to avoid angering your users! Also, you ought to always mark ads intrinsically , for instance as “sponsored content”, to avoid getting accused of deception. Additionally, this is often a sort of highlighting the ad rather than hiding it which corresponds with the FTC Guidelines for Native Advertising.

Native Advertising should offer another value for users: it's not a set of random advertising deals but ads that match the content of the web site . This not only refers to the looks but to the literary genre and topics also . Further, you ought to have a good range of native ads since multiple are often displayed at an equivalent time.

Advantages for Your Mobile Ad Monetization

Now, we would like to seem a the benefits of native advertising for mobile ad monetization. For one, native ads perform ten times better than the other ad format. Additionally, they gain 3 times the quantity of attention as display ads. the rationale for this is often the smaller size of mobile screens, whereby the user sees the ad very quickly. Naturally, more attention results in more clicks. as an example , native ads have a click-through-rate of 0,15%, which is above that of display advertising (0,06%). Hence, native ads also are a very useful gizmo to monetize mobile web traffic. the subsequent chart shows the estimated growth in native advertising revenue over subsequent years.

The chart shows a comparison between the estimated native advertising and non-native advertising revenue

Furthermore, native ads have 23 percent higher ratings in terms of quality than display ads do. According this fact, it are often said that users prefer mobile native ads over other ad formats.

In conclusion, native advertising may be a great chance for advertisers to extend their revenue. the foremost important feature of native advertising is that the transparency for the user where the content ends and therefore the advertisement begins. to deal with the user successfully, you ought to only prefer to cooperate with companies or brands that suit your own opinions and your users’ interests.

Global Traffic Monetization

The easiest thanks to reach a good audience is to spread your ads on international websites. This way, you're ready to monetize the traffic you generate in other countries

The statistic shows the estimated growth of worldwide mobile data traffic for subsequent four years

    1. Clarify important legal questions!

    When you want to monetize the traffic of a selected country, you would like to understand its legal situation. If not, you're taking the danger of violating existing market rules and guidelines. Thus, as a primary step, you would like to tell yourself about current laws and regulations.

    For instance, there are countries that have a really strict cookie policy just like the UK. If these rules are broken, the advertisers could face some severe penalties.

    2. Use a Supply Side Platform (SSP)

    If your goal is to accumulate advertisers that want to succeed in global audiences, you ought to connect with an SSP. they need access to global demand and you've got the chance to check the worth of your international traffic.

    Be sure to stay inventory price differences from country to country in mind. The key factor for optimal CPMs, fill rates and revenue is that the quality of your ad – high viewability and no fraud. Although, ad placements on your own side might recover results, placements you run with an SSP have higher impact and also higher CPMs. Especially, if your content and users are in great demand with global brands.

    3. team with an already Established Platform

    Following the point , we recommend working along side a partner of your current publisher monetization platform. this is often a further option of gaining access to new markets and driving revenue for international inventory. Besides that, they have already got an honest reputation in big markets, which provides validity to your campaigns and evokes trust internationally.

    4. Understand your International users

    It is vital for you to understand where the visitors of your site come from. That way, you'll inform the SSPs and publisher-monetization-platforms to form sure that they serve ads to relevant international audiences. this may cause better performance of your campaigns and within the end to higher CPMs.

    All in all, global traffic monetization might bring you extra value. However, you've got to analyse the areas where most of that traffic originates from and what you've got to think about , especially in terms of laws and regulations. Also, always run tests with an SSP first, to ascertain how users react to your ad inventory.

Ad Monetization Platform

If you opt to contact a billboard monetization platform to assist you together with your app monetization, you would like to require the subsequent performance metrics into consideration:

  • Formats :-

    App developers can place these four ad formats in their apps: Banners, Interstitials, Videos and Natives. At the instant , the latter is that the hottest since it's increasing revenues.

  • Statistics :-

    Developers can only manage their ad campaigns effectively with the assistance of detailed performance statistics. When choosing a billboard monetization platform, you ought to determine which statistics they supply and the way often.

  • Bidding Options :-

    Ad monetization platforms provide these basic bidding models for developers: CPC (cost per click), CPM (cost per mille) and CPI (cost per install).

  • Reach :-

    Each ad monetization platform supports different geo locations and disposes different amounts of advertisers that provide offers for developers.

  • Placements :-

    Placements are particular areas of the app where ads are often displayed. Here, you've got to seem at the company’s SDK: the more flexible the choice , the greater the potential for higher profits.

  • Fill Rate :-

    you'll calculate this ratio by dividing the entire number of times a billboard was successfully displayed by the entire number of times the ad was requested. this is often also a crucial factor when choosing the proper platform, since companies that provide high fill rates are more likely to bring profit.

  • Before partnering up with a specialized company, look closely at how they will actually benefit you.

Mobile Ad Mediation

Ad Mediation may be a technology that permits publishers to distribute and monetize their advertising inventories more efficiently.

Publishers usually have more advertising inventories than they will sell on their own. Since ad mediation is functioning through multiple ad networks, it enables publishers to optimize the distribution of their advertising inventory. meaning they will match the proper networks to the proper inventory. This way, publishers can optimize the fill rates of their inventories and their eCPM (effective cost per mille) in order that they can get the foremost out of each impression.

The main advantage of ad mediation is that it enables publishers to distribute between different ad networks with just one SDK. Thus it makes the delivery of advertising inventory to the acceptable ad network tons easier because app developers don’t need to manage the distribution individually for each single ad network.

Ad mediation usually works consistent with the waterfall system. it's supported an inventory of integrated networks, which are prioritized consistent with their previous sales. When choosing a billboard network, the ad mediation solution starts by requesting the network at the highest of the waterfall. It then makes its way right down to subsequent one if the primary ad network has no availability. This way, ad mediation can guarantee to get the very best paid ad for the inventory of the publisher.

How to Choose the Right Ad Format for Mobile Ad Monetization

    1. Rewarded Offerwall

    With an offerwall, publishers can display various advertisements that feature other apps and different rewards.

    2. Rewarded Video

    With rewarded videos publishers have the chance to reward the users of their app with virtual in-app currency.

    3. Rewarded Interstitial

    Publishers can place rewarded interstitial ads in between levels to realize the eye of their users. the most point is that there's a natural verge of collapse within the app flow therefore the user experience won’t be disturbed.

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