Evolution! The gradual change in a certain direction. If you have an app with an active user base, now is the time you’re probably thinking about how you can monetize your app. And, just as your app strategy has evolved so has monetization.

From 2008 to 2011, publishers mainly focused on paid apps to generate revenue. After that, users became unwilling to pay for an app – especially paying prices ranging from $2 to $10! Instead, users preferred to download free apps that may or may not have advertising. Major app developers are making more of their money via in-app ads, and in fact, it’s projected that in-app advertising will contribute to a growing percentage of app revenues far into 2017.

in-app advertising
Proportion of in-app revenue contributed by in-app advertising

If you’ve already decided that your app should be free, in-app advertising is the best way to start making a return on your app investment (even if development costs have decreased drastically). But how do your users really feel about in-app ads?

Mobile users & in-app advertising

As someone who is deciding to include in-app advertising, an obvious concern is how they impact the user experience. Are users bothered by ads? Do people click on ads? A recent report from Zeendo studied exactly that, concluding that brands can definitely benefit from mobile ads.

adssSome other findings from the same study:

  • 25% of smartphone users do not notice ads. Which means that 85% DO!
  • Males and females between the age of 18 and 29 years of age like ads by 40% and 12% respectively
  • Tablet users are likely to click on in-app ads (make sure to optimize your app designs)
  • Top performing ads are the ones which include special offers and time-sensitive discounts

Show me the money

At the end of the day, the debate over in-app advertising comes down to one thing: how much revenue are we talking about? Making money off of in-app advertising will depend on quantity and quality – the amount of traffic your app pulls in and the competitiveness (CPMs) of having ads in your app. To put it simply, if advertisers can reach their target audience via your app they’re paying more to beat out other advertisers to earn that spot, and that means more revenues for you. Most ad networks have a similar payment strategy where they share with you (the publisher) a percentage of what the advertiser paid to place their ad.

If you’re keen to start testing out in-app advertising to make money from your app, contact AdTrue to learn more about in-app advertising opportunities we offer!

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