For many app publishers, the decision to place ads within their apps does not come lightly. Ads allow publishers to monetize their user base and can be implemented in just about every app genre: games, productivity, utility, entertainment, etc. However, the quality and profitability of ads can vary dramatically if the publisher does not maintain control of the ads that appear within their app. The type of ad, timing, positioning and content of ads can all affect the user experience. Publishers may even wind up advertising their competitors without the right controls!
There is, however, a solution to this quality control issue. Publishers can work with ad networks that serve premium brand ads within their apps, and monetize without jeopardizing the app experience. This results in less disruptive app experiences, allows for greater monetization through ad diversification, and eliminates the risk of competitor advertisements. By “whitelisting” brand ads instead of blacklisting competitor advertisements, publishers can ensure an ad monetization strategy that minimizes intrusiveness and user cannibalization while maximizing profits.
Because the ads are developed by premium brands, users will be exposed to ads that are more interactive, well produced, and fun. Brands such as Adidas and Yamaha invest a great deal of time and resources into their mobile campaigns that aim to be relevant and engaging to mobile consumers; such ads monetize more effectively than the poorly designed ads usually associated with mobile developers. Kraft has even started to leverage the mobile gaming experience to engage consumers with their latest product releases like the Crystal Light Liquid campaign they ran with Zynga’s Words With Friends app.
By diversifying their ad offerings, publishers also gain the ability to monetize their users who may not be interested in gaming apps, but may be interested in fashion, sports, entertainment, etc. By offering a variety of ad genres, publishers can obtain higher CPMs that will result in more revenue. Publishers additionally become able to eliminate competitors’ ads from their advertising portfolio by working exclusively with brands.
Ads currently generate 35% of developers’ revenue, and must be incorporated into an overall monetization strategy in order for publishers to maximize their apps’ potential. Brand ads offer more engaging and less intrusive experiences while facilitating higher CPMs, and publishers should prioritize them in their ad offerings. By whitelisting instead of blacklisting, publishers can spend less time worrying about ad quality and more time improving their app, engaging users, and offering a better app experience.