7 minutes

How are you sabotaging the revenue of your app?

Choosing to monetize your app through ads is common, but it is not necessarily easy. To make your app’s revenue steady and valuable, you need a significant user base as well as quality ads that will not deter your users. It can be challenging at first since not many people like ads, to say the least.

Slavica Grgić

May 24, 2019

Choosing to monetize your app through ads is common, but it is not necessarily easy. To make your app’s revenue steady and valuable, you need a significant user base as well as quality ads that will not deter your users. It can be challenging at first since not many people like ads, to say the least.

To achieve the best results, you need to carefully craft your monetization strategy. If you want to attain the highest app revenue, try to avoid the mistakes listed in this article.

These are the mistakes that could sabotage your ad revenue:

Your ads all look the same

If your ads are all the same, you could easily bore your users and increase churn rates. Ask yourself, would you like to see the same ad again and again?

Different ad variation – Ketchapp.

Some users like one type of ads, while others will bring you more ad revenue from other types of ads. Try adapting to every type of user, showing them different types of ads.

Ketchapp, one of the biggest hyper-casual game publishers, has multiple creatives for every game. To find out what kind of ads are your competitors using, you can browse the Facebook Ads Library or use some of the online tools specialized for competition research.

You’re not measuring ad monetization properly

To optimize your monetization strategies, you first need to know what’s working and what’s not. That is why not measuring your ad monetization will cost you more in the long run.

Choosing a good measurement tool will help you identify what you’ve been doing wrong with your ad monetization. If you choose the right tool, it will provide you with accurate and unbiased data about what are your users doing in the app.

App Event Tracking for mobile apps.

If you’re tracking all the important events in your app with the mobile app analytics platform, you’ll have a better understanding of your users.

Not showing ads to paying users

The recent statistic shows us that in-app ads have taken over in-app purchases in terms of profit. So think twice before restricting ads to non-paying users only.

A carefully planned ad strategy won’t scare away your users. Of course, if one benefit of the paid version of your app is not including the ads, then you can’t show them ads, but otherwise, why not?

Not introducing the rewarded videos early enough

Rewarded video is a specific type of video ad that is shown in exchange for a reward, such as unlocking a life to continue playing or for in-game currency. They are also called incentivized ads. Since the user is rewarded for watching the ad, he is less likely to hate it.

A vast majority of users will churn during the first week, around 80%, so introducing rewarded video before it happens can have a positive effect on the revenue of your app.

Not using cross-promotion

Cross-promotion can be considered in two different ways. It is either promoting your app through other apps you might have (some game publishers publish an app every two weeks or so, so cross-promotion is the most logical step) or signing a partnership deal with another company whose app you’ll promote and in return, they will promote your app.

Using old SDK’s

The mobile app market is a highly dynamic environment and things are constantly changing. That includes SDK’s (Software Development Kits) as well. Change your SDK’s often and update them as the new version is released.

Choosing the wrong ad network

Ad networks are deciding which ads are going to be served to your users. However, their goal is also to make money while doing that, and their interests might not always be the same as yours.

Choosing quality over quantity means that the ads will fit in organically in the app and align with the interests of your users.

Ads are loading too long

Slow loading of the ad will directly affect the revenue of your app. How? Only fully loaded ad counts as an impression.

But it will also affect the user experience of your app. Nobody likes to be interrupted or wait while something is loading. You could be losing your users due to speed issues within your app.

It is very important to track problems like this, so integrating mobile app analytics and attribution is a must. Only with the right tool, you’ll have an idea what your users are doing within the app. What are they swiping, tapping and buying, and are there some obstacles on their journey within the app?

Your user acquisition strategy is going only after the paying users

According to data, in most top grossing games, the whales represent the smallest percentage of users but are responsible for up to 50% or more in revenue sales of an app.

Mobile games whales.

Whales are special, rare, but very valuable users that every mobile app or game is going after. Whales are the users that are spending hundreds, thousands or even millions in a mobile game. And the mobile games whales will often make a difference from break even to being profitable.

And the latest data shows us that more and more users are becoming open to in-app purchases, and the consumer spend grew rapidly. Game publishers don’t need to rely on mobile games whales anymore to bring their profits up. Occasional mobile games whale will be a great catch, but with plenty of other fish in the sea that is willing to spend the money, game publishers changed the rules of the game.

So you don’t need to target only paying users since there are plenty of other users your app can generate from.

Stay on top of the changes…

Changes in the world of mobile are constant and they happen fast. And if you recognized some of the mistakes you have been doing, that are great news. The first step of optimizing is knowing what are the mistakes you need to stop making.

With the help of the right partner, everything is easier. Mobile games are a business of a scale, and that’s one thing we’re great at. If you can acquire 100 or 1000000 users, while keeping the CPI the same, congrats, you’ve hit the jackpot. 🎉🎉🎉

I think you’ll also find these articles interesting! 👇 💁

Mobile user acquisition – 7 ways to attract new users
What is user acquisition (UA)?
11 Key Mobile Game Metrics That Developers MUST Track

About Udonis:

We are an award-winning marketing agency specialized in mobile apps & games. We help scale products that people love, keeping the attention on data and results. Have questions, need help? 🤗 Email us at hello@udonis.co!

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