Adverts account for 55% of mobile revenue among app publishers

Adverts now account for 55% of total publisher revenue, with non-gaming publishers even more reliant on it than gaming counterparts. That’s according to the latest findings from mobile app advertising company, AdColony. In-app purchases, video ads and display ads tend to be the preferred formats.

The company surveyed mobile game developers and non-gaming app makers as well as mobile publishers globally to find out more about the state of the mobile publishing industry.

So what works for mobile app developers and app publishers?

80% of top publishers are using both video and display ads to monetize their apps. Subscriptions tend to be used less often (23%).

Among the ads that works the best for publishers, rewarded video ads are rated highest (87%). Native and interstitial display ads follow at 32% each.

Meanwhile, publishers are the most excited about playable (22%) and interstitial video (22%) ads.

Overall, respondents rated rewarded video ads to be the most effective in terms of monetization, alongside in-app purchases. In-feed video ads were rated comparatively low.

Interestingly, for non-gaming apps, advertising provides 76% of revenue. That makes finding the best performing channels even more vital for developers.

According to publishers, rewarded videos also performed best for enhancing the user experience. In comparison, preroll videos performed the worst.

So how exactly can app makers drive user retention and quality?

Respondents found that retention represented the best indicator of user quality (82%), followed by early IAP (68%).

Meanwhile, 71% of publishers are using more than three engagement methods to retain their users and popular methods include achievements, push notifications and value exchange ads.

Push notifications tend to be viewed as effective in terms of driving engagement by 70% of publishers. In comparison, rewards were deemed effective by 65%.