Pros and Cons of in-app advertisement for money making

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By, Amalia Khokhar

Money making has become a common phenomenon through in-app advertising. The method is quite simple, advertisers pay you for marketing their product or services.

Apart from in-app advertising, most of the mobile apps generate money from Pay per download, subscriptions, e-commerce sale (physical and digital), contract work and CPI programs.

According to a survey created by statista (a website that measures mobile app monetization), revenue generated by in-app advertisement is 31%, which is much higher than other ways of earning money from the mobile app.

This is one reason that free mobile apps have a higher revenue share than paid apps. Some of the apps even allow a user to earn money for themselves by participating in surveys, watching videos and downloading games etc. This is one direct method of advertising through a mobile app.

It is necessary to pick the ads that fit in the app category. For the long run, it should also be noted that the productivity of app doesn’t decline over time so that advertisers won’t stop contacting you.

However, making money from in-app advertising can have both advantages and disadvantages. Sometimes too many advertisements on an app can disrupt the user experience.

Thus, before selecting an ad for marketing of your application, it is necessary that we understand about Pros and Cons of money making through in-app advertisement.

Pros of money making with in-app advertisement

Additional revenue

If your app is selling product or services to the customer, then in-app ads act as an additional revenue source. The advantage of additional revenue is that it always adds up to your primary income.

Click through rates (CTR)

In-app advertisements have higher CTR compared to mobile web advertisement. According to a research CTR of in-app is 0.58% compared to 0.23% of mobile web advertising.

Right target audience

Most of the apps are specific about what the product or service is. Even consumers are aware of what kind of ads will display on the app. This is very helpful for marketers to target the specific audience for their promotions.

Like for a hotel booking app is highly possible that ads might be from food services because it is the next thing that consumer will focus on after booking a hotel. Sometimes it may also include cab booking or flight booking.

In-app ads have a higher probability of reaching your target audience.

Selection of ads

Video ads generate the highest traffic compared to other criteria like Social Media Networking, Software downloads, Web browsing or audio ads.

A survey conducted by Ericsson Mobile utility, Traffic from Video ads might increase to 50% in 2022. Selection of video ads for money-making could be a great option.

Return of investment (ROI)

In-app ads can be helpful in measuring user interaction. As a marketer, this interaction might help in shaping your next campaign. This helps the marketer to understand which aspect of advertising would be effective for a mobile app.

It would help them to generate a greater amount of lead and conversion of the leads gets relatively easier which creates greater ROI.

Customers can’t turn a blind eye

Generally, consumers like to ignore mobile web ads by turning them down through ad blockers or simply ignoring them. In-app ads have a different working mechanism where consumers have to watch those ads without turning them down.

Apps are the necessity of the consumer

A great app can become an important aspect of the consumer’s smartphone and their lifestyle. As it fulfills their category of leisure, business, personal interest, and needs. Such as gaming apps can fill the leisure time of a customer.

This necessity of audience over the apps helps in determining their interaction time on the app. The amount of time they spend on the app will ultimately lead to more number of ads on the running app.

Cons of money making with in-app advertisement

User experience

Selecting too many ads to make more money from your app can spoil the user experience. The consumer can simply uninstall the app if he feels irritated b this.

It is recommended to select the ad that only matches the category of your app and avoid disrupting users when they are performing some critical functions in the app like purchasing and paying for any physical or digital goods.

Irrelevant Ads

If your ads are entirely different from the context of app category or it doesn’t coincide with the ad genre, then the user may find that app irrelevant to the requirement, and they might stop using that app as well thinking that it is not genuine.

Selecting app that picks the interest of the users can help in developing the overall experience.

Too many offers

An app consisting of too many offers or vouchers can make your audience confused. The consumer may often think that instead of providing the required services, the app is misguiding them from the original requirement. This confusion can create a bad reputation for the app and app developers.

Too many offers don’t coincide with the requirement of users; instead, if users avoid using those apps, then this will lead to a decline in overall revenue of app making company.

By choosing the least amount of vouchers to sale, your product related app can certainly be helpful.

Take for example the ‘RedBus’ mobile app. The app provides the least number of vouchers. But in term of services, they provide best facilities in Bus and Hotel booking. The vouchers provided by RedBus always use to work for new and existing customers. Today RedBus is one of the most preferable apps for Bus and Hotel booking.

Non-appealing ads

Non-appealing ads, usually, gets ignored by the consumers. Being marketer or business professional this can be a waste of an opportunity to reach those consumers to promote your product or service. This also reduces the conversion rates to generate money through the ads.

Attractive designs for the display ads are must and sometimes adding rich media into it also can help to attract the audience.

Engagement with banner and video ads

As compared to Banner and Video ads, In-app ads provide less engagement among the consumers due to less CTR. This is the biggest drawback of in-app advertising.

Due to this issue, advertisers take less interest in selecting in-app advertising over video and banner ads. Due to the least interest of advertisers in this, marketers also tend to avoid promoting their products or services through in-app ads.

Consumer-purpose

Banner and video ads provide a better presentation of products and services. They also mention about them in more depth. Banner and video ads are also more steady and constantly being perceived by the consumer on a daily basis.

On the contrary, in-app ads don’t serve its purpose of providing detailed information. Usually, consumer ignores it since it creates more of interruption to their activity rather than serving as an actual advertisement.

Verdict

As compared to video ads, commercials or banner ads, in-app ads are less impactful. However the advertisers still this method of targeting the right consumer.

In-app ads also provide great customer experience which helps advertisers to analyze the audience for their next campaign. Thus if you are looking to generate revenue from your mobile app, make sure it fulfills the criterion the advertiser, and your audience required.

About the Author

Blogging and content writing is one of Amelia’s favorite hobbies. Worked with a number of corporate houses and startups at the beginning. She has also created content on various topics like technology, e-commerce, education and many more. However, blogging about business and finance is something that more appealing and attracts her attention.

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