Posted By PlacePlay on June 18, 2012
How to Make Money with Apps – A PlacePlay Blog Series
Mobile apps are the new black. There are over 500,00 apps available on both the Apple App Store and the Google Play Store. From games, to weather, to entertainment the 1B+ world-wide smart phone users are consuming apps for 94 minutes per day, each - wow! The opportunities for developers and publishers for connect with consumers via apps is a seemingly limitless opportunity.
But, how do you make money with apps? There are multiple options available for iOS and Android app developers for making money with apps, the three main options are:
- Ad Supported:
- Banner Advertising
- Interstitial Advertising
In the How to Make Money with Apps series, we are going to discuss each of the above options in hopes of helping iOS and App developers make more money with apps. Given that PlacePlay is focused on helping app developers increase mobile advertising revenue, we will start there.
How to Make Money with Apps using Banner Advertising:
Mobile banner advertising is intended to be very simple, and it can be. Here is an overview of the process for integrating banner advertising in your iOS or Android app:
- Identify, at the beginning of your app development cycle, where you are going to place banner ads. Banner advertising is most effective when placed on all screens within your app. Identifying where you will place advertising at the beginning of development ensures you have enough space to place banner ads. Some app developers place banner ads on menu screens or similar – this will reduce your overall impressions and CTR, dramatically reducing the amount
of money you can make in your app.
- Integrate more than one banner advertising network. We recommend utilizing PlacePlay with one or more of the below ad networks. Integrating more than 1 network ensures you will fill a high percentage of ad requests – essential to maximizing your revenue.
- iAd (iOS only)
- Millennial Media
- Utilize an ad mediator to optimize post launch. Ad mediators enable you to actively manage which mobile ad networks fill your inventory. This enables the developer to dynamically increase or decrease the percentage of ad impressions a network fills, allowing you to increase your mobile advertising revenue. You can learn more about mobile advertising mediation here
- Launch your app and review the results of your mobile advertising
- Optimize. Mobile advertising is not a one shot deal and every app developer should spend time post launch to optimize their revenue, add new mobile ad networks, replace one’s that do not work in your app, et al. You can learn more about optimizing to increase mobile advertising revenue here
A common question from app developers is: how much money can I make with banner ads? The answer, of course, is it varies. For simplicity sake, we have provided an example with the following assumptions:
- 10k daily active users (60% US, 40% WW)
- Banner ads on all screens
- 6 minute average session time (60k minutes/day)
- Integrate PlacePlay for US & Admob for WW
In this scenario, an app developer can expect to make approximately $7,300 per month using mobile banner advertising. Mobile banner advertising can help app developers make a meaningful amount of money; but, like any form of app monetization it requires users. The more users of your app, the more money your app will generate with banner advertising.
Pros and Cons of Mobile Banner Advertising
Banner Advertising Pros:
- Options for developers: There are lots of mobile banner advertising networks to choose from, including PlacePlay
- Predictable income stream: While not always the highest paying, mobile banner advertising revenue is predictable, and no matter how few or many users your app has, you will make some money (more money if you utilize PlacePlay)
- Enable IAP: As discussed here, including mobile banner advertising provides app developers with a simple option to get started with in-app purchase
Banner Advertising Cons:
- Reduce available space on screen: Typically, mobile banner ads take 50pts of space at the top or bottom of your app – reducing the available space for your app.
- Low eCPM: Most app developers use Admob, or other networks that pay <$1.00 eCPM. In order to make a large amount of revenue with these eCPM levels, app developers must have a lot of users (PlacePlay does pay better, in most cases, but not all).
- Consumers don’t like them: Let’s be clear here, consumers don’t like any advertising, but banner advertising is less intrusive than app interstitials despite being persistent on the screen.
If you would like more information on mobile banner advertising, here are some additional resources you may find valuable:
- The 5 Worst Mobile Advertising Mistakes
- How to Optimize Your Mobile Advertising CPC Campaigns
- 5 Mobile Advertising Myths
- The 3 Most Important Words in Mobile Advertising
Make sure to check back here for the rest of the How to Make Money with Apps series. You can read part 2, How to Make Money with Apps using interstitial advertising here.
What do you think about this? What did we miss on how to make money with apps via mobile banner advertising? Tell us in the comments!
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