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In-app advertising dominates among mobile publishers due to its efficiency and dynamics. The thing is that while creating a mobile application, a business runner should think about earning money from his/her brainchild. Here is when a well-chosen monetization strategy comes handy to increase audience loyalty, attract new users, while the wrong one, contrary, might alienate potential consumers. We have already rolled out guides on subscription models and freemium strategy.
In this post, OpenGeeksLab will uncover insights into in-app advertising, which has grown to be a leading form of advertising.
Mobile in-app advertising has long stepped over of small banners format that no one sees. For now, it is an efficient in-app advertising revenue model for mobile publishers, in which you are paid to display ads in a mobile application. In-app advertising is more convenient and attractive to users compared to ads that are traditionally displayed over the Internet. Therefore, colorful and fascinating full-screen advertising is a great tool to increase profits and collaborate with brands.
In-app advertising is the most popular of all in-app monetization methods. By 2022, US mobile advertising will surpass television, print, computers, and radio combined. Users spend much time on their phones, which means that budgets are transferred there. App Annie predicts marketing spending advertisers invest in mobile apps will reach $206 million by 2021. For comparison, in 2016 in-app advertising budget was only $72 million. That’s why soon, the in-app ads market will only grow. Hence, it remains a profitable niche for both app owners and advertisers.
Nowadays rhythm of life is such that people practically do not have time for long preludes before meeting a brand, a new service, or a mobile application. Utilizing mobile in-app advertising allows you to promote new products faster, get more income for the app development itself, and maximize your potential users’ audience. Let’s see some crucial benefits of in-app advertising:
If you’ve come decide to sell ad space in an app, think about how you can make your ads visible (thus increasing your income), without annoying users. Which format is best for your app monetization strategy? You have to find the answer by yourself, and we are ready to guide you. Let’s take a closer look at each of in-app ad formats.
Banner is the leading ad format; comes in different types and sizes. It is displayed according to the same principle as banners on sites: on top or bottom of the page, on sides, horizontal and vertical. Advertisers, ad networks, services regularly add new banner formats to increase their impact. The most effective ones are expandable banners that need to be tapped or pulled on a corner. Banners are not annoying because they are always minimized but give a high conversion because interested users are watching them.
Medium rectangle is one of the most popular formats and is found on almost every website that is monetized through display ads. It is also called “rectangle” or “300×250.” This is a common format popular with advertisers due to its high advertising impact.
Interstitials are displayed full-screen in transitions between actions within an application. It can be in the form of a banner or a video shown for a few seconds. Such ads cannot be overlooked, but they can significantly annoy users. To close it, users need to click a button. There are two interstitial options. The first one is interstitial video advertising, which can be skipped or closed by clicking on the cross. The second one is rich interstitial, which cannot be missed; people are doomed to watch it to the end.
In-app native ads are blocks, banners, videos, texts disguised as a mobile application interface design or in-app content. Such ads seem less annoying for users as they look like regular posts but carry an advertising message. Conversions for native ads are higher because users often don’t realize this is an ad.
Pre-roll format is a short advertising video users see before accessing in-app content. Such video lasts 6 through 15 seconds. Its effectiveness is many times greater than that of a traditional advertising video on television. The main advantage of pre-roll advertising is that it is possible to target a specific user base. That is, do not show videos to everyone in a row but provide personalized ads based on people’s interests..
Rewarded video is an ad type that encourages users to watch it for a reward. In-app video ads are commonly shown in the gaming industry, providing players in-app purchases such as new equipment for characters, bonuses or extra lives, virtual currency, hints, etc.
Outstream is a video ad format designed specifically for mobile phones and tablets. Users see your mobile in-app advertising while browsing in-app content. When a video ad enters on visible screen area, it automatically starts playing without sound. Then, users can quickly begin playing video, scroll page, or click on a video and go to the site.
As you can see, mobile in-app advertising might be handy without annoying people. While you are treating users as partners, they accept the fact that there may or will be a piece of advertising. Do not annoy users with ads to squeeze the last juice and loyalty out of them. Your product must deliver value, solve consumers’ problems, and remain user-friendly. This policy pays off in the medium to long term as your application becomes more popular.
Of course, in-app ads not only one way to make money. Moreover, in-app advertising does not suit all products. Assess your audience and their interaction with the app before making a decision. To make things right, drop us a line. We will deliver software solutions and an in-app monetization method to meet your business case.
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