Although the mobile ad industry has matured, mobile app monetization remains a challenge for many app developers. Some publishers have millions of active users, but still fail to reach significant revenues.
If we look at the current state of the mobile app monetization landscape, ads are still the most popular channel for monetization, with 65% of all mobile apps displaying ads. Moreover, our latest Android SDK’s data trends report shows 75% of free apps using an ad-network SDK, making it the second most popular SDK category today.
According to Juniper Research, mobile app ads spend will reach $16.9 billion by 2018!
Games Paved the Way
According to a report that was released by App Annie in 2016, “Games generated approximately 85% of app market revenue in 2015, representing a total of $34.8 billion across the globe. We expect the games category to grow to $41.5 billion in 2016 and $74.6 billion in 2020 thanks to strong monetization in mature markets, especially China’s tier-one and tier-two cities, as well as Japan and South Korea.”
HIS also show that games are the biggest mobile ad revenue generators:
Of course, there are multiple monetization models, such as paid apps, freemium apps (one-time subscription fee), subscription, in app purchases (another model games are very fond of, although a report by swrve suggest that only 1.9% of mobile gamers made in-app purchases in Feb 2016), sponsorship (quite new), commerce and more.
Looking at industry veterans, many of which are games, we decided to share some advanced mobile-app ad monetization best practices.
Let’s get started…