Monetize your application: sell ad space

    Before you begin the active phase of application development, the idea of ​​which you have already thought out, it is worth answering two main questions:
    • Why does the user need your program?
    • How will you monetize your application?

    As for the first question, here each developer must decide for himself, it is difficult to advise something. And with the answer to the second question, we, Appodeal , will try to help.

    When it comes to monetizing an application, the first thing that many come up with is the allocation of space for advertising. Revenue can be very good, and the size of the mobile advertising market is growing all the time. For example, Statista predicts its increase to $ 59.67 billion in 2017. It would be nice to get at least a small fraction of this amount, right?

    We recommend that you at least study the option of generating income through advertising in the application.

    We plan to place ads in the application at the start of development

    If you have decided to sell an ad slot in an application, think about how you can make an advertisement noticeable (thus increasing your income), but at the same time not annoy users. The more users your application has, the more valuable the place where you plan to advertise. Here you need a balance, because you can not annoy people with constantly pop-up banners.

    We are talking about banner advertising. About another variety - native advertising - we wrote in one of the previous articles. Banner advertising in mobile applications is still at the initial stage of its development. Types of advertising and how to place it are constantly changing, consider four main.

    Horizontal banner: the simplest and most common type

    Pros : it is easy to find a place to place a banner in the application.
    Cons : It brings less income than other types of advertising (for example, native).

    Static ad-insertion: such advertising occupies the entire screen of the application. The user must click on "X" to return to the application.

    Pros : such advertising is visible to everyone. Advertisers like this variation because it encourages the user to act (even if this closes the advertisement). It brings a good income.

    Cons : May be annoying for users, so using a static full-screen ad is only possible from time to time. Here you need to think carefully about how to display ads without losing users.

    Expandable. Advertising increases if you tap on it, occupying either the entire screen, or half

    Pros : all this is not too annoying for users, so there is no particular problem. In addition, “advertising blindness” does not develop. One of the best types of advertising in mobile applications.

    Cons : there are very few users who really want to click on such advertising, so the income will be corresponding.

    Animated advertising insert: add media content, get animation

    Pros : flexibility and interactivity, more explicit user interaction. Animated insertion ads usually bring good income.

    Cons : this kind of advertising is complex purely technologically. Here the system processes videos, GIFs and other media files. Since the resources of the mobile device are expended on this, either the application itself or the user’s device during the display of such advertising can “slow down”. Plus, a part of the communication channel is eating off, and in mobile networks it is already not too wide.

    In addition to the above types of advertisements, there are others. All species (at least most) are listed here.. The link provides a fairly detailed systematization, so we recommend that you familiarize yourself. In the meantime, let's try to understand how your users can influence the increase in advertising revenue in the application.

    Need to know your users.

    Of course, we are not talking about getting to know each other personally. The fact is that for advertisers, any information that can help increase conversion is extremely important. And the more information advertisers can get about the target audience of the application, the more expensive the ad space can be.

    1. The size of the audience. Typically, the cost of banner advertising is calculated using the CPM model (cost per thousand impressions). Therefore, important information for both the application developer and the advertiser is not only data on the number of application downloads, but also the number of active users (during the day, week, month) of your program. If users use the application several times a day, the number of impressions can be quite high.

    2. Geography of users.For most advertisers, it’s important from which countries / cities users enter the application. It is important for business to advertise to the target audience, which is determined by factors (language, country, city). The developer can get more money for advertising if such information is provided to the partner company.

    3. Age, gender, profession. Thousands of applications are created for a specific audience. Age, gender, profession, security of the user - all this can be of importance to the advertiser. And if your application is created, for example, to evaluate coffee houses, an advertiser who sells coffee or equipment for its production will come to you.

    All these details may look insignificant, but in fact this is important information for advertisers. The more user data you provide to partners, the more revenue you can get.

    This information can be collected using services like MixPanel or Flurry . Plus, you can work with methods like Facebook Login , receiving user data from a social network.

    How to sell ad space?

    There are three main ways to monetize the application using advertising banners and some other types of advertising:

    1. Mobile advertising revenue optimizers, that is, Appodeal and similar services.
    2. Exchange services like DoubleClick and OpenX.
    3. Direct work with advertisers and agencies.

    There are a lot of advertising networks, exchanges and other services. But optimizing such platforms for working with a specific application is a problem for the developer. Using specialized services removes this problem. As you know, we at Appodeal offer to sell ads using access to most networks through a single interface and sell impressions using the auction method between them. Judging by the growth of 50% per month, which I recently talked aboutPavel Golubev, the developers familiar with us agree that it is convenient and effective.

    As for direct advertising - sometimes it is even more profitable for the developer than working with any networks. But looking for an advertiser on your own is not so easy, and companies themselves do not go to developers very often. This method is suitable for highly specialized applications, which, due to their specificity, have a connection with all potential advertisers.

    And as a conclusion

    If you intend to monetize the application, selling an “advertising site” is a good idea. Before you start monetizing, let's briefly repeat the main provisions of the article:

    1. Decide on a place for advertising at the very beginning of development. If you have such an opportunity, test various possibilities for advertising using user assistance - you need to choose a format that is least annoying to the user, but noticeable enough.
    2. Study the audience of the application. The more information, the better.
    3. Be prepared to offer various options for advertising to those who are interested in this.
    4. Study the advertising networks and services to find the best option with which you can get started, feel free to try the Appodeal service. If your application is narrowly themed and the number of advertisers in this market is estimated at no more than tens, it may be more profitable to contact them directly.

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