Mobile apps are one of the most significant channels for advertisers to capture their targeted consumers’ attention. As of today, research shows there are over 6.3 billion smartphone users across the world. In fact, this number is significantly larger than the number of desktop users. According to eMarketer, more than 25% of media time and 89% of mobile time.
While in 2021, 92% of the mobile time was spent using mobile apps, according to Datareportal. This implies undoubtedly that Mobile apps are the present & future of digital marketing. Having a mobile app will surely give your business an edge in reaching out to a global audience on various platforms.
However, It doesn’t take a lot of math to realize that the more people download your app, the more likely it is that you generate more income for yourself. Research reveals that Mobile apps are expected to generate over $935 billion in revenue by 2023, according to statistic.com. This is a great encouragement for app developers and anyone who plans on developing an app. In this article, we will explore mobile in-app traffic, mobile in-app advertising, its different pricing models and some best strategies to help you generate huge income for your app.
What is mobile in-app traffic?
You might have been confused about the difference between traffic and audience right?
Anyways, there is not much of a difference, the only slight contrast is that your audience number is made up of those who have downloaded your mobile app and have probably returned to use your app frequently, whereas traffic is the number of your unique visitors who have downloaded your app to use it for the first time. It is this number that is important to focus on at this stage.
So, the question now is – how will you turn your app’s downloads into high revenue? The answer is simple, you need to strategize In mobile in-app advertising. Nowadays, the app stores are dominated by free-to-download apps, where only 5% of users make in-app purchases (IAP) and generate revenue for apps. Surely, some apps can generate income on IAP alone, but most apps rely on in-app advertising (IAA) as a critical revenue stream. Without taking much time, let’s delve into Mobile in-app advertising.
Mobile In-App Advertising
What is mobile in-app advertising?
In-app advertising is an important monetization strategy for app creators, in which they get paid to show ads on their apps. In other words, ad buyers pay them for showing ads within their app. There are various ways to show and measure the performance of these ads, which will be explained later.
Pros of in-app advertising
1. Provides additional revenue
App developers are being paid for each advert they display on their app and commend with in-app purchases. This serves as an additional strategy to generate more revenue for your app.
2. Enhances the app’s user experience
It easily integrates mobile app ads into your game loop to create an optimistic experience for your in-app users. For instance, when you offer your app users rewards in exchange for watching or interacting with ads at specific points in the app.
3. Boosts in-app purchases
It increases in-app purchases with ad units that serve as part of your in-app economy. For example, your app users who engage with rewarded ads are more likely to make an in-app purchase 5 times.
4. Improves user engagement and retention
In-app ads that are modified to your game and integrated into the right places with the right pacing can boost your app users’ retention and in-app engagement. Research reveals that users who engage with in-app ads proceed to view 4.2 times more products per session compared to organic users who may be looking for specific products. That’s 4.2 more opportunities to convert your app users into paying customers.
5. Click-through rates (CTR)
In-app ads often have higher CTR compared to mobile web advertisements. According to research carried out by Medialets, the CTR of in-app is 0.58% compared to mobile web advertising which is 0.23%.
Cons of In-App Advertising
In-app advertising isn’t as easy as displaying an ad and watching the money roll in. Many obstacles need to be overcome.
1. Irrelevant Ads
If your app ads are completely unrelated to the context of the app category, then the users might find that app irrelevant to the requirement, thereby causing them to stop using your app as well thinking that it is not genuine.
2. User experience
Displaying too many ads in your app can spoil the user experience. The users can simply uninstall the app if they feel irritated about this.
3. Too many offers
If your app consists of too many offers or vouchers, it can make your audience confused. The users or consumers might often think that instead of providing the required services, the app is misleading them to another thing entirely. This confusion can create a bad reputation for your app.
Forms of In-App ads
Banner ads
Banner ads are probably the most familiar ads to app users. They are usually displayed as text accompanied by an image at either top or bottom of the screen, as well as the app content. They usually consist of a visual, text, and a call-to-action button.
Video ads
Video ads are often short clips that usually appear before another video. For instance, the ads that usually appear before you get to the video you want to watch on YouTube are video ads. They are highly engaging and attract high click-through rates.
Rewarded video ads
These are mostly seen in gaming apps and usually appear with a clear value exchange, such that if you watch an ad, you will be rewarded. These kinds of videos are exceptionally good for engaging users especially if the reward increases as you watch on consecutive days. According to Datareportal, app users spend the most time using social and communication apps (44%), video and entertainment apps (26%), and gaming apps (9%).
Interstitial ads
Interstitial ads are also known as full-screen ads. They are deemed to be less intrusive than other ads as they are usually displayed during a transition in the app. For example, between game levels. They also usually contain rich content and can sometimes be static or video ads.
Mobile In-App Ads Measure Methods
There are different measurement methods, varying in risk and reward for both the app owner and advertiser. Let’s explore some of them:
- Cost Per Mille(CPM): It is the price an advertiser pays a publisher for every 1,000 (mille) times the ad is displayed.
- Cost Per Click (CPC): It is the payment made by the advertiser to the publisher only when an ad is clicked.
- Cost Per Action (CPA): It is a pricing measure that requires the advertiser to pay the publisher when a click leads to a specific, pre-defined action within an app such as registration or purchase.
- Cost per Install (CPI): It is the pricing measure that requires the advertiser to pay only when the action results in an install.
How Do You Increase Your Mobile In-App Traffic?
1. Social Media Marketing and email marketing
Social media platforms are an effective way to reach massive traffic. If you determine what type of app you have and the kind of users it has, then you will be able to choose the most suitable platform for marketing your app. For example, if it’s a B2C app, then you should focus on Facebook, Instagram, and YouTube. But if it is a B2B app, then it should be Twitter and LinkedIn especially. Social media efforts should have best begun before the launch of your app so that your audience will be aware of your product and as anticipated for its launch. You can also drive traffic to your app by sending compelling email content to your target audience.
2. App Reviewing Websites
Send your app to popular websites that review mobile apps. This can effectively help you drive high traffic and favorable buzz for your app if they rate higher or mention your app on their website.
3. Start Blogging
Enter the blogging world because nowadays people like to read content and get influenced a lot. Be sure to make your blog writing intriguing and motivating, enabling people to visualize their tasks being managed by your app, overcoming difficulties, and making their lives easier.
4. Motivate Users with Referrals rewards
Referrals are the most influential tool to boost your app installation rate. You can turn your existing app users into brand ambassadors by rewarding them with incentives for referring your app to their friends and kins. For example, if you have a marketing app, you can provide a 20% discount on purchases for a referral.
Wrapping Up
Driving traffic to your app, increasing downloads, and generating revenue through in-app ads are not easy goals to achieve. But if you take these tips into action, you will certainly witness a high rate of installations and a significant increase in your traffic and revenue generation – more importantly, if you keep your target audience preferences in mind when using these strategies. What yields the best result for the general audience may not yield as well for your target audience. So, keeping their best interests at heart can help you get the best results out of these practices.