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Monetization of applications.Part2

A system of selling and buying ad spots in real time is called RTB exchange. Its work is very simple: when app is opened by a user, it sends a query to the system for ad demonstration. As app has a certain topic, advertisers that produce commodities and offer services in this sphere are interested in ad impressions. The automatics determines who is ready to pay the highest price for service in this sphere. The automatics determines which advertiser is ready to pay the highest price for demonstration of ad or video, and after that their ad is shown to user. This method of work is profitable for publishers, as it allows selling ad spot for the highest price in the exchange market.

Optimization of advertising

What should be taken into account when starting optimization of advertising in your app? How difficult is this process? As a matter of fact, there are not many aspects – and we shall help you deal with them.

  • You shouldn’t orient only at CPM.

    When choosing an ad network, pay attention only to very high CPM. Always pay attention to the ration of the number of real impressions to the number of attempts – for if your network pays one dollar for a thousand ad impressions, but the real ad impressions comes only with every third attempt, you will earn less than in case with a network with fillrate of 70% with fifty cents for impression.

  • One ad network could not be enough.

    In order to get stable income from app, it will not be enough to work with one ad network. Specifics of internal market of the country determines the situation when international networks that showed themselves to be effective could show a very poor result of monetization. Sometimes, it is better to prefer local advertisers, as their understanding of users’ needs is far better. Besides, when app is aimed at a rather wide audience, one ad network could fail to give relevant ads which are good for all. Some advertisers want to cooperate only with game apps, other look for apps for children or people with certain hobbies. Do not forget that different networks offer different terms of payment and cooperation, with different indicators of metrics. This, many networks with a 100% ratio of the number of real impressions to the number of efforts, the advertising can be unchanged during a long period of time. As a result, users stop paying attention to such ads, which leads to low CPM. It should be noted that no network could have high indexes of metrics during the whole period of work. Advertisers come and go, start new companies, and hold actions, which is reflected at all indicators of network efficiency.

  • Always look for new networks

    In order to learn how effectively one or another ad network monetizes your app, you’ll need some time. As a rule, two or three weeks will be enough. It is advisable to set the initial ad impression for network testing, limiting the number of its demonstrations for one user. In order for network to be able to see you traffic and choose the optimal companies, arrange a preliminary test of CPM. This will be a mutually profitable decision, as thus you will be able to choose the optimal order of impression, and the network will be able to set traffic.

  • The “more impressions – more money” rule does not work.

    It is necessary to realize that the growth of income from monetization of app cannot be achieved by simple increase of the number of ad impressions. The publisher’s income is influenced by many factors, and specialists recommend calculating income according to the formula “Income = fillrate * Requests* CTR * CPC” or “Income = (fillrate * Requests* CPM):1000. As you see, your income will be influenced by a lot of indicators. The number of requests, sent by app for ad impression, will depend on the number of users of your app. Commonness of possibilities for ad impressions in one app is usually called inventory. In order for this indicator to be close to 100%, you’ll need to use ads waterfall which includes several networks.
    Metrics CTR that shows the ratio of the number of clicks to the number of real impressions, is important, regardless of the network with which you work. The number of user clicks on ads is an important indicator which could be increased to maximum. In order for this metrics to be at its highest, you’ll have to take into account several aspects.

The highest CTR indicator is observed with videos, then come full-screen static and dynamic inters, with Native ads and banner ads closing the list.

The highest number of clicks could be achieved with their integration into app. Simple example: if we speak about banner ads, it is important to set them in such a way so when a user goes from one page of your app to another one, the banner wouldn’t change the location and size – the same goes with scrolling the page down or turn of the device with screen adaptation function.

Apart from that, it should be taken into account that user spends more time on some pages than on other – so it is very important to choose the right spot for placing ad. Also, pay attention to the time of refreshment of information on the banner – it could be 30 seconds, minute, or 90 seconds. Thus, every 30 seconds, the ad of wrist watch could be replaced by ad of car or trip abroad together with banner restarting. This allows reducing negative perception of ad by user, as they would like to see the same in your app during the whole period of work. You should give time for testing the optimal variant for your app and see whether all information could be studied during the time given for impression.

In case of inters – ads which cover the whole gadget screen – they have their own aspects of placement. The most effective is inter’s placement into the beginning of app, when a user studies the offered information with interest. Also, a good feedback is achieved by placement into transition from level to level in games or when achieving certain result in non-game apps.

Do not pay too much attention to the number of impression of the same video or ad to user. Sooner or later, a moment will come when the most patient and loyal user will consider your ad to be intrusive and irritating. This may result in their full refusal from using your app, which, surely, is not something you want. In order to avoid such scenario, you can use frequency capping, which would enable you to limit the number of ad demonstrations to several times per day.

  • Pay attention to relevance and targeting.

Of course, advertising should satisfy demands of your users. If you issued the app that helps to get ready to driving test, it would be great to place ad on cars, car accessories, and automobile chemistry. The same ads would have no clicks at all if they were placed in the app for calculating food calories or children’s game.

  • Do not use random clicks in order to gain more CTR.

Random and involuntary clicks on ads take place due to corresponding location of the close button or functional buttons of the app. Trying to enter the menu, the user involuntarily clicks on the banner, which leads to large initial growth of your earnings. However, when advertiser finds out that clicks do not give him the much desires purchases and new clients, he might want to refuse working with you. And this will happen, as the irritated users will strive to leave the page that they opened without wishing to do so.

  • Your earnings are also influenced by the click cost.

What does it depend on? The most important factor is country where the ad is shown. There is special ranking by ad networks, according to which all countries are divided into three categories. The most “expensive” countries for advertiser are the USA, Japan, and Great Britain.

The second factor is operational system for your app. The click cost on gadget with Android is lower than the click cost on gadget with iOS. And you will get 30-40% more for ad shown to user on iPad than for its demonstration on iPhone. This division is made by ad networks on the basis of welfare of owners of corresponding device.

Of course, the click cost will depend on the goals of the brand. If it is a large player in the market with large advertising budget, they will be able to allow buying the position in apps ranking by high click cost offered to publishers. The more the advertiser’s interest in attracting attention of users is, the more he will be ready to pay for achieving the goal. Small startups or local brand cannot compete with such giants due to small advertising budget and low CPC.

The click cost is determined by the moment of ad impression. The most expensive are inters during the start of app and the first demonstration of banner which attracts high interest from users.

Do not forget about ad relevance and geographical targeting. Advertiser should study your targeted audience, their occupations, middle age, sex proportion, and place of residence. Only the full analysis of all these factors will provide the picture of potential consumers of goods or services offered by advertiser. Advertising that is oriented at specific user is considered to be the most effective – therefore, it click cost is higher than the average one.

Let’s make conclusions

However ideal in quality a mobile app is, it will always receive some negative reviews. Amazingly enough, but users, being spoiled with a lot of free content, are ready to “minus” ranking of a game or utility just due to the fact that it shows ad or a banner from time to time.

Your goal is not to allow the number of the unsatisfied users growing. As a variant, you can set the ad impressions only for new users during its start – thus, those who installed your app some time ago will not have bad impressions.

In order for your wish to make money on monetization of the app not to play a low-down trick with you, it would help to imagine that you’re the user of the app. First of all, a user evaluates the perspectives of using your development and he’s interested how useful and functional it would be for him. Downloading free game or utility, he might admit the possibility for necessity for periodic view of videos or appearance of banners on the page. However, you should not risk the loyalty of users, making them watch long videos without possibility of closing them after each finished level.

Surely, advertising products are not the only possibility for making money on the app. Still, they are good not for all apps. Study your targeted audience and its occupations and needs, in order to find the ideal way of cooperation with users. Good luck!


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