Know Your Audience When Monetizing Your App
Kyle Buzzell is a Content Manager at Adcash, he draws from his years of experience in psychology and sales to plan, research, and write content. He enjoys content in all forms and is in a constant state of learning to ensure that the content he produces is relevant and entertaining.
Users not only like to use apps, they LOVE to! According to eMarketer, 86% of mobile web time is spent in-app. The only issue is that users don’t like to pay for them. But, that doesn’t mean you can’t monetize your app, it just means that freemium is here to stay.
The right psychology behind a mobile app monetization
You have a few options, you can offer in-app purchases and sponsored gifts, but not everyone has the development resources that are necessary to make them natural to the app experience.
That means that most will rely on what ad networks can provide, and that’s alot.
The best provide SDKs that are easy to integrate and can be included in mediation stacks
Ad format options vary, but typically fall under two broad categories: display and video ads. The question is, should you be using formats from one or both categories?
A successful app monetization strategy which includes ad networks is Rovio’s Angry Birds.
Angry Birds uses ads from both categories
Specifically, they use slide-in banners and two forms of video ads, one of which is interstitial. The video ads are shown more frequently than the slide-in banners. Why? Advertisers are willing to pay more for video ads than display ads.
But why? Video ads are more immersive, hold user attention, and are more likely to convert.
The science of it is simple, our brains are built to process visual information. In fact, the brain processes visual information at least as fast as 13 milliseconds and continues processing the information afterwards.
How fast is 13 milliseconds? It takes the electricity that turns on the light bulb you switch on when entering a room longer to reach the bulb…that fast.
The art is also simple. An ad is no more than a sales pitch, the most effective of which follow a well-defined narrative. With display ads, even if you can provide story, it is open to the viewer’s interpretation.
With video, you provide a narrative, a narrative that you control.
Moral of the story: lean your strategy towards video and choose a monetization partner that provides an SDK that is easily integrated and included in mediation stacks, such as Adcash.