By AppsHive Team
Congratulations!
You have successfully made an app; your idea is now validated into a full-fledged application, but what’s next?
Grabbing the attention, the main end goal of your app, if it runs under a free model, is to boost revenue.
It is essential to elevate the app’s revenue by finding the proper resources, which is when in app advertising can help you get a necessary rise. The in-app advertising campaign is vital to generating revenue and upgrading the mobile app's marketing strategy.
This extensive guide on in app advertising offers to help you by giving a quick walkthrough on overall working, the types of in-app advertisers, and much more. Deep dive into this blog to learn how to make the most of this important income source for an app.
A Brief Overview of In App Advertising
The mobile advertising market is expected to grow to USD 621.63 billion by 2029. In-app advertising is a sales strategy of displaying and placing advertisements within mobile applications to encourage users to see them. It can be considered in sections like marketing for brands and revenue for app owners.
Besides, these app advertisements have increased significantly and are becoming a vital source of income for numerous apps available in the market. There is a distinct way in which app advertisements can be possible, mainly through social media sites, mobile game apps, and streaming apps.
In-app advertising is considered an effective technique that will help in allowing the targeting of specific advertisers that are based on the demographics of mobile app ads. Furthermore, this revenue will only boost if the ads are effectively placed in a way that increases sales. The advertisers will get an improvement in the app engagement for the mobile app publishers. Merely mobile publishers can earn up to $2.50 from mobile in-app advertising.
Hence, after knowing briefly about the in-app advertising market, let’s move on to understand how in-app advertising works to understand the whole concept of app monetization better.
How Does In App Advertising Work?
Mainly, this system of in app ad work is divided into two separate sections one is buying, and another one is selling. If we go through the buy side, we will find the stakeholders buying the ads, whereas the sell-side ad space is known as the publishers.
Besides them, the in-app ad network is a mediator between the two, acting as a middleman to sell the publisher in the app inventory to the necessary app advertisers. Moreover, the app willing to display an ad requests the ad network, which is used in the advanced algorithm to get the highest-paying advertisers.
Whenever you are working along with the ad network, it must feel like a stock exchange. In addition, you are not only paying for the impressions but are also picking the desired audience and making a bid on them.
There is also a demand-side platform allowing the users to access multiple ad exchanges. The supply-side platform will help place the ads for publishers in front of their target audience.
Remember that the measurement partner in this scenario will fall neither on the buyer's nor seller's side. They will play an independent role in this whole ecosystem by helping to learn about advertisers and which in app advertising networks deliver better user value.
After working, let’s understand different types of in-app advertising formats to choose the one suitable for your app.
Different Types of In App Advertisements
Various app distribution platforms are available today to grab user attention. Additionally, you can boost the usage through ads in app which can be of multiple types:
1) Interstitial Ads
This mobile ad, also called a full-screen ad, is less intuitive than the other types. The interstitial video ads will mainly appear in a transition. If the advertisement is in the mobile gaming apps, it will appear between the levels. Besides, this type of ad is content-specific and comes in static and video ads, mainly in a more typical format than the other apps.
2) Rewarded Video Ads
Reward ads are kind of in app ads predominantly found in gaming apps, have a direct exchange of value and can be the highest paying ad. Here, if the users watch the video, they can only receive the necessary in-app reward from the app. Rewarded video ads are considered the best type as they give prominent user engagement and boost downloads, especially when the rewards are getting better over the period through the app.
3) Video Ads
This format is mainly used in the youtube platform, where the ads appear before the video is played. The video ad is a highly interesting concept that can help gain higher click-through rates.
4) Native Ads
The native ads appear while surfing through the website on the internet or while scrolling social media apps. Native ads will not hinder your overall in-app experience but still can be worth the attention of the end-users.
5) Banner Ads
The end-users highly recognize full-screen banner ads at the bottom or on the top of the screen. Besides, this in app advertising will be in the format of visual, text, and call-to-action buttons to get instant user engagement.
6) Playable Ads
They are visible to end-users as a mini version of any gaming app where the user can decide whether to install it. The playable ads are fun and interactive videos that can give high CPM rates.
Therefore, these are the types of in app advertisements that are available for buyers in the market. Mainly, as you understand different types, the implementation for higher effectiveness will be a question in your mind. Hence, go through these best practices for better effectiveness of such ads.
How to Implement In-App Ads? Best Practices of In App Advertising Market
Many apps are available in the app store and google play store, making the usage span smaller for mobile users. Then, you will need to promote your app through various ways to end-users to know how to increase app retention. Also, the in-app ads can greatly boost the app's visibility and users. Hence, to get the best results from in-app advertising, go through these pointers to keep in mind while implementing:
1) Choosing Appropriate Ad Placements
The first thing is to choose the ad format suitable for the app. If you are a buyer or a publisher, you should know which ad placement will suit your app genre. Adopting the appropriate ad placements for both sides is necessary to boost the in-app revenue.
This practice will take further measures like ads' size, type, and location that will share with buyers. The placement might seem a small part of app advertising, but it is important to choose it most finely as it helps directly grab the user's attention.
2) Targeting and Personalization
Targeting becomes highly effective as the ad is published in specific mobile apps for certain categories. With the help of in-app advertisements, an effective way to reach target customer segments. Also, user personalization will help get higher click-through rates, making app personalization even more necessary.
Besides, targeting personalization also plays a key role as a buyer or a publisher. You can choose which goes perfectly for your target audience. For example, if the app is about fitness, it is feasible to advertise fitness equipment or supplements. Mainly, that's how to target the exact end users for the buyers.
3) Utilizing Native Advertising
In this type, the end-user might be tricked that they do not see the ad mainly because they are considered the best type for user engagement and attention. Besides, more than static ads, the ones with video ads mainly optimize click-through rates and help get user engagement in real-time with in app advertising success.
Awareness, engagement, and conversions are prompted to be higher in native video advertisements. These video formats are more effective than the normal display of ads and provide relevance to the app users.
4) Ensuring Ad Relevance
An ad's relevance is crucial because high ad relevance with a higher quality score is meant to have a better per-click rate. Furthermore, if the ad campaign by the buyer matches the user's expectation only when ads are done with proper keyword insertion and a post-clicking landing page.
The keywords and visuals are explicit in ensuring ad relevance, so measure them before in-app advertising. For more ad relevance, you can create a specific group of ads, keep ads simple yet appealing, and ensure many other similar factors.
5) Providing an Optimal User Experience
Mainly, user experience and ads have complex relationship, but it can be simplified if one follows these simple things. The first point is to not overcrowd with too many ads, which will also not help get the necessary user attention from advertising campaigns.
You can improve the ad loading time and quality of the app and partner with the various monetization platforms. Mainly, you can also create a non-intrusive ad format that does not hurdle the user's natural flow to get more attention from them.
6) Ad Network Options
The ad network, as previously explained, is an intermediary between the seller and buyer. It is a platform that is exclusively used by the in-app advertising market. There are four main types of mobile app advertising networks: horizontal, premium, specialized, and vertical, from which an app publisher can choose the one appropriate.
Some of the most amazing multiple ad networks for publishers currently in the market:
- Google AdSense
- Facebook Ads
- Media.net
- AdThrive
- Amazon Associates
7) Measuring and Optimizing Ad Performance
After the ad campaigns get published, there are multiple performance metrics through which you can observe and evaluate the conversion rates. Through the multiple metrics, you can get the actual in app mobile ads performance and also give the exact estimates for optimizing ads in new ways.
Mainly to get better revenues and get further more ads in the future from various platforms. These estimates will keep you in a positive light while optimizing the ads.
Monetization Strategies: In-App Revenue Models
In this last part, we will discuss monetization strategies or various in-app pricing models to know how to charge buyers for publishing advertisements.
- Cost Per Mile(CPM)
This cost publisher will get from buyers every mile(1000) times the ad is displayed in front of the end user. It is a great way for the publisher to show ads to get higher in-app advertising revenue.
- Cost Per Click (CPC)
In this model, the publisher can charge higher app advertising costs only if he delivers the necessary clicks to the buyer. As a publisher, you can easily charge higher prices based on clicks.
- Cost Per Action (CPA)
Cost per action means the publisher will only get paid when the end-user takes action. It might seem tough, but with good publishing skills, publishers can deliver promising results with effective revenue rates and charge higher CPA rates.
- Cost Per Install (CPI)
It is the most lucrative in-app advertisement model as the per-install cost can be higher as per the action results in the installation. Hence, here there are high chances for you as a publisher to boost your regular income.
After knowing the best practices, let's quickly examine the mistakes the applications should avoid while in app advertising.
Common Mistakes to Avoid In-App Advertising
These are some of the common mistakes that one can avoid while doing in-app advertising for the buyers to get their desired results from your platforms:
1) Overloading Users With Ads
Even if you can earn revenue from the ads, don't overload your end-users with many ads. They can lose interest in using the app even if you give them the best features. Hence, don't bombard the end-users with the explicit amount of ads that hinder the usual flow of usage in the app.
2) Displaying Irrelevant Ads
Choose to display ads relevant to your app market mainly because not all ads are related to your end users. And which might not help you get the best buyer results under any CPC, CPI, or CPA format. Displaying relevant ads to a specific end-user group is necessary to get the necessary actions from the end users.
3) Ignoring User Feedback
Don't ignore your end-user's plead to get some revenue. If they are tired of the consistent ads, you should avoid them by giving ad blockers. Furthermore, as said, their feedback should be valuable to you for any currently running in app advertisements.
4) Focusing Solely on Ad Revenues
Many apps focus on maximizing ad revenue if they run under the freemium model. It can be quite risky for your app to get quick acceleration in revenue under this model as you don't want to overload your end-users with innumerable ads, so refrain from doing the same.
Conclusion:
After this comprehensive guide, you must be so well prepared to start your own in app advertising. If you decide on the type of ad formats, cultivate the best practices, and avoid mistakes, this advertising model can be apt for you to boost your in app revenue. In-app advertising can be a critical revenue source for many app owners in the market right now. Especially for the freemium-dominated market, you can easily gain the desired boost in revenue from this model.
Firstly, in-app ads it is important to get the proper user attention to grab that market. Hence, you can list your app on platforms like AppsHive to get the user's attention and necessary boost in downloads, user attention, and many more advantages.