The world has witnessed a flux in smartphone usage and dependency over the years. The sole reason being engaging mobile games/apps and the remarkable convenience that follows by. This is when the world came across ways of monetizing mobile games/apps with in-app advertising.
Where today according to Statista the world has over 3.8 billion smartphone users, marketers have found significant ways of using them as a marketing medium. With the growing usage of smartphone game apps, marketers found ways to reach them out while they use them. The phenomena stand similar to you watching your favorite TV show and then later getting served with TVCs.
What Is In-App Advertising And How It Works for Monetization?
In-App advertising is a strategic way of monetizing a mobile game/app by smoothly serving ads within the interface. A game/app publisher with in-app advertising gets a remarkable opportunity to increase its in-app revenue. To begin mobile app monetization, a game/app publisher can sign up with an ad mediation platform. As soon as a publisher integrates the SDK – development kit of the ad mediation platform, ads start showing up within the game/app. But how does one start earning?
Game publishers are paid according to the number of impressions their game/app generates. This means that the number of times an ad is successfully shown to the game/app user counts as an impression leading to revenue generation. However, a publisher is paid on the basis of per a thousand impressions generated which are known as eCPM – effective cost per mile.
The eCPM generated is dependent on the rates offered by the advertisers that serve ads into the publisher’s mobile game/app. Therefore, it is essential for a game/app publisher to get ads served from the highest paying advertiser associated with the Ad Networks available.
In-app advertising is, without doubt, the most convenient and fruitful way of monetizing a game/app, here is why
Why In-App Advertising is the Best Way to Monetize a Mobile game/app?
Statista in March 2021 reported that mobile apps are expected to generate more than 935 billion U.S. dollars with in-app advertising and paid downloads by 2023. Whereas, game/app developers find many other reasons to choose in-app. Here is what you need to know.
Consumer Retention and Engagement
With the idea of TVCs being highly irritating and negatively impacting the viewer experience, you must be perceiving the same for in-app advertising. Hang on! Just as not every size fits all, it does not negatively impact user experience unless certain circumstances. To your surprise, let me mention that ad formats such as rewarding video ads and playable ads significantly increase user retention and boost engagement.
A comprehensive study by Tapjoy helped mobile game publishers derive results that supported in-app advertising with rewarding ads to increase retention and engagement.
In-App Advertising – Higher Impression with Growing User Base
With in-app advertising KPI – key performance index that drives revenue for a game/app publisher is the number of impressions. The more impressions your mobile game/app generates, the more value it adds to the revenue growth. This indicates that user base and impressions grow side by side while growing revenue. So more users can bring in more impressions and better revenue.
What if your mobile game/app becomes viral? Sounds great, doesn’t it?
In-app advertising is highly targeted. Advertisers use various metrics, demographics and thresholds to target the desired audience. For a publisher, the ads being served in his or her game/app will significantly add value to the users using the game/app. Furthermore, ads matching to the user’s interest do not seem intrusive.
In-app advertising lets a game/app publisher easily optimize the monetization strategy. A publisher can look into the trends and insights and make changes that can boost earnings. These changes include the ad placement and ad formats being used to enable monetization at the time of SDK integration.
With all the above mentioned benefits, in-app advertising for mobile game monetization stands out among all other monetization models. From being a convenient automated option to scalable payouts, in-app advertising offers great benefits for mobile game/app publishers to enjoy. Easy revenue with the convenience of optimization makes in-app advertising a great choice for mobile game monetization.
Hi, I am Emily Wilson, content manager at ConsoliAds. I am an English Language graduate from Stansfield College, Singapore. Have been working as a content writer in the field of innovation and information technology since 2019. I love exploring and understanding present-day developments in my field of interest.