{"id":1884,"date":"2019-02-19T09:56:56","date_gmt":"2019-02-19T08:56:56","guid":{"rendered":"https:\/\/www.appagent.co\/blog\/?p=1884"},"modified":"2022-07-11T16:44:35","modified_gmt":"2022-07-11T14:44:35","slug":"what-is-mobile-ad-monetization","status":"publish","type":"post","link":"https:\/\/webrixstudio.online\/aa\/blog\/what-is-mobile-ad-monetization\/","title":{"rendered":"What is Mobile Ad Monetization?"},"content":{"rendered":"\t\t
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To learn more about industry insights and best practices, sign up for the AppAgent newsletter <\/span><\/i>here<\/span><\/i><\/a>.<\/span><\/i><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Learn what ad monetization means, which mobile ad formats you can use, why eCPM matters and the best ad networks for monetization in 2019.<\/strong><\/p>\n

This is a guest blog post by <\/span><\/i>Jacopo Guanziroli<\/span><\/i><\/a>\u00a0who provides consultancy for AppAgent on ad monetization topics. Jacopo worked at Barcelona-based Social Point as Ad Monetization Manager. Alongside AppAgent he works with Flaregames and The Breach Studios.<\/span><\/i><\/p>\n

The idea of ad monetization is that you can generate a sustainable revenue<\/strong> through your website, blog or app, by featuring advertisements. Ad monetization is becoming one of the single most important aspects of mobile marketing. If you don\u2019t know how it works, then you need to \u2013 and fast! <\/span><\/p>\n

According to eMarketer, spending on mobile ads will represent 43% of total media ad spending in the US by 2020 – a greater percentage than all traditional media combined. Naturally, the demand for inventory will grow as mobile publishers seek to capitalize on this big trend.<\/span><\/p>\n

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Ad monetization meaning<\/h2>\n

We asked Bo\u017eo Jankovi\u0107 from Nordeus, creators of hit game Top Eleven, to give his explanation of ad monetization and related terms: “Ad monetization has been established as a sustainable business model over the course of the past few years. The growth of in-app advertising has been so great that the industry has come up with a separate term for this business model: view-to-play. This term is used to mainly refer to games that make ads part of their core gameplay and that are making the majority of their revenues by showing ads.”<\/span><\/p>\n

To help you understand the principles and process of ad monetization works, we\u2019ve broken it down into 6 main areas. They are:<\/span><\/p>\n

1) How mobile ad monetization works<\/p>\n

2) The difference between brand and performance campaigns<\/p>\n

3) The main types of mobile ads<\/p>\n

4) The main bid types<\/p>\n

5) What eCPM means on mobile<\/p>\n

6) Top mobile ad networks for monetization in 2019<\/p>\n

Let\u2019s look at them in more detail.<\/span><\/p>\n

How mobile ad monetization works<\/h2>\n

Freemium apps offer us access to content that\u2019s free but give us the opportunity to download premium content, which needs to be paid for. Spotify and Skype are great examples of successful freemium models at work.<\/p>\n

We call this form of mobile monetization an \u2018In app purchase\u2019 or IAP. It\u2019s the classic method for monetizing your app.<\/span><\/p>\n

It\u2019s particularly popular for game developers. They make their game free to download and pick up users, but if the user then wants to unlock extra content like lives or resources then they need to pay. Sound familiar?<\/span><\/p>\n

Another equally effective monetization method is In-App Advertisements (IAA). The name is pretty clear, but to avoid doubt, with IAA the users of your app are exposed to third-party adverts. Advertisers and developers are linked by ad networks, facilitating their supply and demand.<\/span><\/p>\n

As an example, think of Duolingo. At the end of each stage you can find banners from advertisers who want their app to be downloaded. This is an example of a push-advertisement where the publishers decide when and where to display it. Later in the post, we will discuss pull-ads \u2013 where users decide when to be shown an advert.<\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The difference between brand and performance campaigns<\/h2>\n

Let us imagine that we own an app and want to raise some revenue by using ad monetization. We\u2019ve been approached by two advertisers who want to publish advertisements in our app.<\/span><\/p>\n

One is a brand-new technology retailer that wants to increase footfall in its shop and draw customers to its website. The other is a mobile app developer that wants to increase the number of downloads for its new app. The requirements of each advertiser are different, which means different campaign types.<\/span><\/p>\n

In this case, we would recommend that the technology shop should choose a branding campaign and the developer select a performance campaign. But what\u2019s the difference?<\/span><\/p>\n

A <\/span>branding campaign<\/b> focuses on delivering users a positive message about your brand. It\u2019s not about pushing a user to purchase immediately but rather to create awareness first, which should bring results in the medium to long-term timeframe. In our example, the technology shop wants potential customers to know they exist and, when they want to buy a new gadget or tech toy, will remember the shop and the brand.<\/span><\/p>\n

Our app developers quite clearly want to drive action, encouraging users to install their app \u2013 which is why they need a performance campaign. <\/span>Performance campaigns<\/b> are designed to get people to tap on an ad and initiate an install.<\/span><\/p>\n

As well as a different focus, the campaigns will have different pricing strategies too, something we explore when we look at bid types.<\/span><\/p>\n

The main types of mobile ads<\/h2>\n

Using the same example, now that we know the objectives of the two campaigns, we need to select the right type of advertisement to create and display.<\/span><\/p>\n

There are four main types of adverts to choose from: rewarded videos, interstitials, offer walls and native. The newest ad format used for monetization are also playable (interactive) ads. Let\u2019s look at them in more detail.<\/span><\/p>\n

Rewarded videos<\/b> are a type of a \u201cpull-ad\u201d where the users decide to access premium content or to get an extra reward such as double coins in exchange for viewing an in-app video ad. Once the user has watched the video they are returned to the app flow where they will have earned their in-app currency or collect a bonus as a reward for viewing the content.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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