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The Hidden Cost of Exclusivity


What’s the real benefit and cost of signing an exclusive agreement for monetization?

As a publisher, the space for ads in your app is valuable real estate. Ad platforms fill up the space with targeted ads for your users to view and monetize your app. So signing exclusivity can result in poor results and signing with the wrong ad platform can be detrimental to monetization.

While some ad platforms partake in exclusivity where their ad inventory is the only one allowed for display in your apps, Aarki firmly believes in an open market. Competition breeds new and innovative ideas, which continue to improve market efficiency. If you are pressured into exclusivity by an ad platform consider the following.

Pro:

  1. You will have the ability to negotiate preferred revenue share terms for a specified period.

Cons:

  1. The ad platform may fall short of selling your real estate for the highest price and you will not have the ability to leverage competitive forces to optimize revenue share.
  2. The smaller ad inventory will limit the number of ads, and there is no guarantee on the fill rate.
  3. You are stuck with the technology used by the ad platform, which may violate Apple’s terms of service.
  4. You cannot mediate across multiple ad platforms.
  5. Are you treated as an important partner?

Recent events show that developers stand to benefit by keeping their options open. By not signing up to exclusivity you let the best ad platform compete for your business.

Topics: Industry News