This post was most recently updated on January 18th, 2023
Your app is brilliant. It’s exactly what people have been waiting for, and everyone is going nuts over the revolutionary new features you’ve added. Now, you’re trying to find the best way to monetize it.
When it comes to app monetization, advertising has maximum potential when it comes to revenue generation. While non-advertising models like subscription models and paid apps can bring you a sustainable flow of revenue, in-app advertising is on a whole different level & you can outpace the revenue of other app monetization models if you partner with the right AdTech company.
This article breaks down the best advertising practices for apps to help make sure you leave not a single cent on the table.
The difference between a successful mobile app and a failed one could very well be the developer’s ability to advertise his or her product effectively—and one step towards achieving that is by ensuring you have a solid plan in place before you go all in on ads.
Take the time to gather data and set revenue goals to make sure your monetization efforts are profitable and sustainable.
Gather key user data from the get-go. Your ability to make sound marketing decisions hinges on knowing details about your users—such as what they like, what they don’t, and what kind of messages they respond to. Create profiles for each user using demographic information like location, gender, and age; behavioral information like what content they consume; and performance indicators like how often they open their app. This will allow you to tailor your marketing efforts towards segments of users based on their profiles.
Also, keep track of how users interact with different ad types, which will help you understand user behavior and improve the overall user experience for your app.
App publishers often focus their advertising strategies on the latest ad tech fads. The most popular ad networks tend to be the ones that deliver the most creative formats, such as rich media, interstitials, and rewarded video. However, this doesn’t always mean they can provide the best value for publishers’ inventory.
Google AdMob, which accounts for the majority of demand for in-app ad inventory, shouldn’t be left behind. While there are plenty of gems in the ad tech field, the best thing about them is that they are complemented by a healthy substrate of demand from Google, Amazon, and other whales.
In addition to optimizing for the latest formats and demand sources, app publishers should also keep an eye out for these categories: location-based services (LBS), TV, video ads (via mobile web or OTT), and performance-based ads like affiliate links or influencer marketing.
Do this and you’ll be bringing in maximum ad revenue consistently.
When you’re just starting an app development business, it’s easy to get psyched up about the big numbers. That’s why developers often jump into advertising too fast. Then reality sinks in when they look at their metrics. They see that most of their users are uninstalling their app shortly after signing up and never using it again.
The truth is, it takes time to find the right ad format for your app. If you don’t start small and test each format for a few weeks first, you’ll end up throwing your ad budget away on formats that don’t work for your users or your app.
Get started with one ad format at a time, measure performance over a few weeks, and then analyze collected data. For example, you might start with banner ads that are shown after an in-app purchase has been made. See how many people click on the ads and how many of them install the advertised app successfully.
Are you only using interstitial ads and display banner ads on your app just like Snapchat?
There’s nothing wrong with following tried and tested ad unit advertising but if you only deploy the conventional in-app ad units on your app, I bet you’re missing out on a lot of revenue.
Once you incorporate more advanced ad units like rewarded video, native ads, & premium ad units, you’ll see an even better revenue uplift.
Rewarded video ads are a great way to drive more revenue from your users. Rewarded video ads have been shown to have higher click-through rates and conversion rates when compared to standard in-app ads. That’s because users are incentivized to watch the video ad by receiving in-game currency or other goodies. As a result, your app will receive more traffic from rewarded video ads than from display banner ads, which are simply another form of interruption.
Other than that, Native ads blend in seamlessly with your app design. They’re presented in such a way that it appears as if they were created specifically for the app and fully integrated into the UI.
Users seem to prefer these ads since they blend in with the look & feel of your app and don’t interrupt their experience as much as other forms of advertising do.
App developers have realized that the best way to increase return on investment (ROI) is to increase user engagement. One of the most widely used tools in the industry is Google Analytics, which gives you access to a treasure trove of information.
If you’re an app developer and want to avoid this problem, here’s a simple solution: invest in a data management platform (DMP) that allows you to easily gather user and advertising data, process it, build segments and monetize it. In the long term, your RPMs (revenue per mille) will only increase if you’re analyzing your data and split testing what ad units and ad formats are working best every quarter.
Better start analyzing all your data before the third-party cookies get wiped out!
Direct deals are making a comeback, and they’re here to stay. Direct deals are better because you get paid more for each install and can be 100% sure that no one else is buying the same inventory.
For the uninitiated, a direct deal is when you sell ad space directly to an advertiser or agency, as opposed to selling it through a programmatic ad network. You’re as close to the end user as you can be, and with this proximity comes a lot of opportunity for new technologies and techniques that just aren’t feasible when you’re working with programmatic buys.
The yield only goes up with direct demand and solid relationships with premium buyers.
MonetizeMore’s app monetization platform is designed for app publishers who are serious about growing their revenue. With our cutting-edge AI dashboard and decades of combined experience in our team, we remodel mediocre advertising into sustainable revenue that ensures your app’s success & growth.
With over seven years at the forefront of programmatic advertising, Aleesha is a renowned Ad-Tech expert, blending innovative strategies with cutting-edge technology. Her insights have reshaped programmatic advertising, leading to groundbreaking campaigns and 10X ROI increases for publishers and global brands. She believes in setting new standards in dynamic ad targeting and optimization.
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