Becoming an in-app monetization master requires knowledge, experience, and strategy. This article will provide you with the tips and insights you need, to achieve effective and successful in-app ad monetization.
Mobile App Monetization
Before we begin, let’s take a minute to think about the mobile ad industry. What does the future hold in store? A whole lot of money bag potential. The graph below depicts the amount of spend on mobile ads per year, from 2014 until 2018.
Though there is a slight decrease in the percentage of growth, the amount of mobile ad spend continues to increase. Advertisers will keep spending money on ads, and by the end of 2018, the ad spend is expected to reach $120 billion dollars. That’s a whopping 50% increase compared to 2016 spend.
This is how much Advertisers spend on each and every one of us. Well, guess what? By the end of 2018, advertisers will spend a bit more than $50 on every mobile user. For those of you who were poor math students that are almost twice the amount invested today. Seems as though ads are kicking, and will continue to kick butt in the future. They are here to stay, at least on mobile.
Before you can become an “ad-tech shark” and start taking a piece of the revenue pie, you have to start by understanding the basic measurements. We’ve put together the definitions that matter bellow.
Calls –The number of times you request an ad impression from an ad partner
Impression – Each time an ad request is filled
Fill Rate – % of calls that serve an ad impression
Adoption rate – Unique ad engagement / unique users
CPM- Cost per 1,000 impressions
eCPM- Effective cost per thousand ad impressions (Revenue x impressions/ 1,000 )
CTR- Click-Through- Rate
CVR- Conversion Rate
ARP DAU- Average revenue per -Daily Active User for ads
Ads LTV – The total earnings from ads served
ATTAV – Average time to ad view
You may be familiar with Fill rate, eCPM, and conversion rate but are you measuring performances correctly? When comparing performances of different demand providers – are you doing it right? Do you know if you’re maximizing the revenue of your inventory?
Here is the most important tip to remember: when measuring performances, compare revenue to revenue. It is not about eCPM, it is about revenue per request/per call. Impressions are not a clear-cut definition. Each ad partner defines impressions differently.
- An impression can be recorded when the ad Loads
- It can be recorded when the ad Shows
- Only once the user actually viewed the ad
- It can be defined only if the user viewed the ad certain amount of time
- Or it can be defined per end user
Each content provider has its own method of defining an impression so make sure to always compare the revenue generated vs. the requests you allocated.
Want to perfect ad monetization? Take the following factors into consideration:
- Content relevance
There’s no way to escape it, content is always king. Show ads that are relevant to your users. Know your audience and target them accordingly with the ads that fit them most.
- Part of the App UI
Make sure the Ad’s look -and feel matches your app’s content so it looks like it’s part of the app’s user interface. ( Native advertising rocks at doing this)
- Amount of Ads
How often should a user see an ad? You don’t want to bombard your users with ads and, you want to make sure you don’t leave money on the table. The more the user sees your ad the more your CPM will decay. Keep that in mind when deciding how many ads to display.
Make sure the user has full control when it comes to skipping or closing the ad.
These 4 factors combined will give you the most effective ad monetization.
A balancing Act
You want to get to the “golden point” It’s that magical point you experience when you find balance. You’ll reach the golden point when you learn to maximize Ad revenue while keeping your app users engaged with your app.
How can you do that?
We thought you’d never ask. By utilizing the different types of native and rewarded video formats, of course!
Let’s dive deeper.
Native Ads – What are they and why should you use them?
Native ads are a type of ad format that match the visual design of the app they live within. Native ads extend user experience, by providing value through relevant content that flows within the context of the surrounding app content. They are a quick and easy method to monetize effectively and they should be an integral part of every monetization strategy for most non-gaming apps.
The Native ad format provides publishers with control over the ads customization. Implementing native ads means creating the optimal combination of the raw campaign data that includes: app icon, creative message, video, static image, and CTA. By having that control, they are able to generate ads that don’t disrupt the user experience and ultimately add value.
Types of Native Advertising
Below are examples of the common ad format types you should know.
Static Ads – For optimal results use a few ads per user session and not only 1 ad.
In-feed Video ad – Probably the most popular ad unit these days, showing a video ad on an endless feed. You can choose whether the video should be initiated by the user or not. In-feed video ads usually keep the user on the site/app while played.