Evolution! The gradual change in a certain direction. If you have an app with an active user base, now is the time you’re probably thinking about how you can monetize your app. And, just as your app strategy has evolved so has monetization.
From 2008 to 2011, publishers mainly focused on paid apps to generate revenue. After that, users became unwilling to pay for an app – especially paying prices ranging from $2 to $10! Instead, users preferred to download free apps that may or may not have advertising. Major app developers are making more of their money via in-app ads, and in fact, it’s projected that in-app advertising will contribute to a growing percentage of app revenues far into 2017.
If you’ve already decided that your app should be free, in-app advertising is the best way to start making a return on your app investment (even if development costs have decreased drastically). But how do your users really feel about in-app ads?
Mobile users & app advertising
As someone who is deciding to include in-app advertising, an obvious concern is how they impact the user experience. Are users bothered by ads? Do people click on ads? A recent report from Zeendo studied exactly that, concluding that brands can definitely benefit from mobile ads.
Some other findings from the same study:
- 25% of smartphone users do not notice ads. Which means that 85% DO!
- Males and females between the age of 18 and 29 years of age like ads by 40% and 12% respectively
- Tablet users are likely to click on in-app ads (make sure to optimize your app designs)
- Top performing ads are the ones which include special offers and time-sensitive discounts
Show me the money
At the end of the day, the debate over in-app advertising comes down to one thing: how much revenue are we talking about? Making money off of in-app advertising will depend on quantity and quality – the amount of traffic your app pulls in and the competitiveness (CPMs) of having ads in your app. To put it simply, if advertisers can reach their target audience via your app they’re paying more to beat out other advertisers to earn that spot, and that means more revenues for you. Most ad networks have a similar payment strategy where they share with you (the publisher) a percentage of what the advertiser paid to place their ad. For more examples on how to forecast profits advertisers can make, check out this blog post.
If you’re keen to start testing out in-app advertising to make money from your app, here are a few advertising networks you can configure in your AppsBuilder app.
InMobi claims to be the only mobile-first advertising platform with 1 billion users and according to Naveen Tewari, founder and CEO of InMobi, on average, a typical consumer interacts with the network at least six times per day, either through an app or a mobile website.
If you have an inMobi account, you can serve banner ads to your app users from a network of advertisers that include some of the best known brands, meaning that inMobi ads increase engagement and deliver competitive eCPMs.
Admob is an ad network for mobile app publishers, owned by Google. By configuring an Admob account, AppsBuilder users can show banner ads at the top or bottom of their app screen, ads can prompt users to install apps, visit websites, get directions, view products or call a phone number.
One great feature of AdMob is their mediation & optimization process that lets you serve ads to your apps from multiple sources, including the AdMob network, the AdMob eCPM Floor Beta, third-party ad networks, and house ad campaigns. This way campaigns are optimized for CPM, helping you make the most revenues.
AdSense is yet another service offered by Google and AppsBuilder users can configure their Adsense accounts to deliver mobile ads to their web apps. Again, you can set up top and bottom screen banner ads. As a publisher you benefit from a large inventory of advertisers, but don’t worry about having irrelevent ads – ie. a McDonald’s advert in your health pro app . AdSense touts robust targeting to ensure ads are relevant to your app content and audience.
There you have it! In-app advertising can help you earn revenues once your app has acquired a steady amount of traffic and engagement. Is in-app advertising best for your app? Let us know about your results in the comments below!