In todays app economics, monetization managers lives have been made very difficult by the freemium model, used by their respective organizations to generate revenue from their respective apps. In their quest to woo users for clicking on their in-app ads, most of them end up spoiling the overall experience of the app for the user. This results in the migration of users from that particular app with an outrage which can be seen on social media or apps ratings and comments. So, the organization not only lost current revenue but also a lot of brand value and customers positive top of the mind awareness. Like in Nepal earthquake case, many brands tried to beef up their ad campaigns on mobile platform by giving a reference to the earthquake. That reference was given by ignoring that thousands of people lost their lives in the earthquake. So, a lot of brand value was lost and it will stay in customers mind. In this piece of text; I will try to shed some light on some best practices in app monetization.
- Personalization – Most of the apps falter at this very important point during monetization management by posting irrelevant ads which irritate the user and adds up negative value to the overall app experience of the user. So, it is advisable that only relevant ads must be served to the user while using the app. For example, in a gaming application; ads must be smartly placed at the high points of the game play at which probability of user clicking on the ad is higher. Not to miss that, the content of the ad must be relevant. A lot of games like Candy crush are doing it successfully.
- App trailers – As videos continue to be the medium for generating maximum footfalls, integrating them in the monetization eco-system can do wonders. A trailer containing a walk-through of the most awesome features of the app you want to promote, can be placed in the ad slot of already popular app. One wont require incentivizing the process further by much margin. But, the results have been very encouraging till date.
- Interstitial ads – Using interstitial ads has generated better results in monetizing the apps as compared to while using banner ads. Because of its ability to gel well with video feature, interstitial ads are clearly the winners.
- Tiered pricing – Monetization can be done by dividing the users on the basis of their activeness quotient. For example, if 60 % of the users are spending one hour on the app, 20% of the users are using two hours on the app and rest 20% users spend more than 4 hours on the app; then the monetization mechanism for them needs to be weighed with a composite score comprising of the usage and the number of users of a particular category.
App monetization will continue to be a very important area of focus for the develop community as well as the business people in the times to come. Other avenues like second screen are yet to be explored in mobile app space. The onus is not on where to put the ads in the app so that user clicks on it easily but the onus is on how to attract the user to click on ads wherever they are in the game. This can be done only by creating win-win situation for both the parties without disrupting the pleasant experience of the app user.