Increasing App Monetization Using Visual Mobile Analytics

With the app market continuing to explode, publishers are always on the lookout for new ways to monetize that will best suit them and their app. However, there is no surefire way to monetize and developers need to be clear on which app market they see getting involved in before they reach decisions on how best to monetize.

 

In late first quarter of 2013, research powerhouse IDC published a report entitled: “Mobile App Advertising and Monetization Spotlight 2012-2017: The Economics of Free.” The report explored their findings on models related to app monetization that was broken down by country, and included mobile advertising projections through 2017.

With the app market continuing to explode, publishers are always on the lookout for new ways to monetize that will best suit them and their app. However, there is no surefire way to monetize and developers need to be clear on which app market they see getting involved in before they reach decisions on how best to monetize. While the freemium model is still on top as far as monetization, the report mentioned above shows that in-app advertising is overtaking PC and mobile browser-based ads in revenue growth, positioning it as a growth model on the rise. However, not in every market.

The statistic presented below represents the CTR rate for in-app advertising in the selected countries as of March 2014. In the course of the survey period, it was discovered that 24 percent of smartphone users in the US click on in-app ads a portion of the time. CTR rates in China for in-app advertising was the highest with 65 percent.

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Source: Statista 

Best Practices for App Monetization

With the move forward to monetization, I’ll go over just some of the strategies app publishers are using to monetize.

Interstitial Ads

These ads are sometimes confused with banner ads, but they should not be as they are very different. We’ve all seen these. Those ads that appear suddenly as you navigate from one screen to the next with an X in the upper corner or other buttons to close or dismiss.

appsee2The Interstitial has been proven to be a very effective type of ad when monetizing. They deliver great eCPM (Effective Cost Per Mille) and are very popular among app and game developers. They are a proven app monetization format. See the chart below on how quickly Interstitial ad revenue is rising from the first quarter of 2014.

appsee3Native Ads

This ad format is gaining in popularity because of its seamless feel that blends right into the mobile user experience. Via the integration of native ads on an app’s screens, users are presented with ads that do not disrupt their UX as much as banner ads do.

Native ads are able to deliver messages in a clearer way and generate more revenue. Because they do not disrupt the user experience and become more a part of it while blending in with the design, apps that use this style of advertising retain users at a higher rate while keeping them active.

A Facebook feed is a great example of where you might see native ads. App developers are free to create native ads that blend in with their design by implementing a relevant API. They can place them how they want, where they want to integrate them in a seamless fashion within their app.

Native ads deliver high CTR and conversion rates by not annoying users and are a proven way to monetize an app and to keep revenue streaming. Below is an example from the Facebook’s developer page that shows how a native travel-related ad fits into the end of an article about travel.

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In-App Purchases

App developers who are believers in the freemium model, are high on this tactic to monetize.

The diverse types of purchases that users can make run the gamut with the freemium model. Users can make an in-app purchase to unlock a feature, gain added functionality such as exclusive content, the purchase of time to use an app beyond a free trial period, pay fees for the removal of ads, the list goes on. It is all about using creativity and knowing your audience to get the perfect fit.