The world is getting ‘App’ified! Apps are driving the Mobile Internet Ecosystem forward and have emerged as one of the biggest forms of entertainment & utility on mobile. As a result, it is important for developers to devise a successful monetization strategy while they continue spurring the innovation cycle. Here are four Golden App Monetization Rules :
Rule 1: Deciding the right ad placement strategy
It is essential for app developers to understand that the right combination of ad placement & ad format will be critical to creating a successful loyal user base. The key is to ensure that ads do not impact the user experience of the app. Imagine the app as your favourite magazine – the most impactful spaces in terms of noticeability and maximum revenue generation are the first and last pages – so why not replicate the same tactic with your app? Hence, Launch and Exit ads are extremely effective, conspicuous and will yield a higher income as advertisers are willing to pay a premium for it. In addition, Interstitial ads which are viewed between game levels or any natural break in the app experience tend to be more fruitful.
Rule 2: Overcoming the billing hurdle
Unlike developed markets, emerging markets have unique challenges. While mobile penetration is at 80%, the credit card penetration is only in single digits. This low credit card penetration accompanied by low GDP per capita means that ‘in-app purchase’ via OEM App stores would not be a viable monetization model in emerging markets. Users in these markets just do not have the billing mechanism to pay for apps.To overcome this fundamental challenge of enabling users to transact for apps in a hassle free manner, it’s imperative that developers collaborate with Telcos and plug into their billing so that users can purchase from the app store utilizing their prepaid balance or postpaid bill.
Rule 3: Going beyond traditional monetization models
App developers need to have an inclusive monetisation model for a successful app strategy – one that targets users which are willing to pay for apps (to upgrade features / remove ads etc) and also consider users (primarily from emerging markets) who prefer free app downloads. A blend of these two will give app developers the best results in terms of reach and revenues. The ideal model is – allow users to download for free, and start monetising them via ads. At the same time, allow users who want a premium experience to upgrade within the free app itself.
In this manner the developer gets access to a wide number of users for his app who get monetised via ads & also makes additional revenue from the users who will pay to upgrade.
Rule 4 : Choosing the right ad mediation platform
App developers need to be cognizant of the fact that apps do not possess the same level of flexibility as websites. Once an app is downloaded, the developer is at the users mercy for app updates. So if a developer just puts one SDK in their app & it does not perform monetization well – he is stuck with it. As a result, it is advisable for developers to use a server side Ad mediation platform that gives them choice and control. This platform should also give them an option to add or edit ad networks and generate revenue from multiple ad networks of their preference. At the same time, they need to also get an option to get back fill from a wide range of other ad networks to ensure high fill rate without the hassle of setting up each individually. Developers should also be able to run cross promotional house ads as it will help them ramp up the next app quickly, while delivering powerful eCPM optimization.
These 4 golden rules should put you on the path to higher revenues from your apps.