So, you want to monetize your app? Do you feel like ads are an effective monetization solution for you? Do you know how to give your users a great user experience while maximizing your revenue? There are more and more factors that come into play in app monetization, and with these tips we’ll make sure you are always at the top of your game!
#1 Choose the right format
There are 5 common mobile ad formats: banners, interstitials, native ads, video, and rich media. Which ads are right for your app? Different ad formats will work better depending if you have a game app, news app, or utility app. But, there’s no perfect recipe. To choose the right ads for your app, you need to test a variety of formats and be open to new ones. Just make sure not to be too fast and loose with the number of ads you use, so you don’t lose any of your valuable users due to an overly aggressive ad strategy.
#2 Customize formats to your audience
The way in which you present your ads and the type of ads you choose can have a significant impact on both your wallet and user experience. The key is to be audience-focused and know who your users are. It is important to take into consideration their age, gender, location, and so on. For example, if you find that men are active in your app for longer periods of time, and women are harder to reach and use the app more infrequently, maybe you need to be more careful with your use of ads towards women. Showing native ads, which usually shows a better user experience, for female users, might be a smarter way to monetize. Whereas with your male users you have more flexibility and can sample a larger variety of ads and formats with more frequency.
#3 Know the right timing and placement for ads
When a user opens an app, they have a certain goal that they want to accomplish, whether it be reading an article, playing a game, or ordering a taxi. As an app developer, what you need to understand is how to help them achieve their goal while still presenting your ads. Timing is essential. It’s best to show the ad when your users are ready for it, such as when they are switching levels in a game, once they have completed their task, or while they’re browsing the app. The ad will have a higher click through rate since the user’s initial goal has already been accomplished.
#4 To use or not use competitor ads?
Should you allow competitors to run their ads on your app? The better question you need to ask is will your users continue to use your app, if they are also exposed to your competitors? The answer varies depending on the type of app you have. For example, when it comes to dating apps, singles tend to have multiple dating apps to increase their chances of finding a match. So, in that case, if you own this kind of app, it shouldn’t affect your user retention rate and you can only gain from such a move. However, for a game app, it can make a difference, as a user tends to get sucked into a single game for a period of time. The bottom line is to know your users, their behavior, and what suits your app the best.
#5 Refresh time
Another factor, often overlooked when building a monetization strategy, is refresh time. Using ad refresh can be an effective way to grow your revenue, since the practice of refreshing ads can increase the number of ads shown to a specific user, and result in higher revenue. However, you don’t want to refresh too quickly. If you refresh after five seconds, the user doesn’t have enough time to really see the ad and engage with it, and this will eventually lead to a drop in CPM. A refresh time of 30-45 seconds is considered optimal, but only you can determine the right balance for your users.
As you can see, a lot goes into making sure your app monetization strategy is as successful as possible. But if you follow these tips, you are well on your way!