How to optimize your in-app advertising strategy

How to optimize your in-app advertising strategy

Ready to start displaying ads in your apps?

There are several ways to monetize your mobile app. You can create a paid app to earn money whenever someone decides to install your app. You can create a free or paid app that offers in-app purchases (IAP) for additional items, credits, or features. Or you can choose to display ads in your app, which allows you to earn money through ad clicks or by encouraging users to upgrade from a free app to a paid app version.

Earn money with in-app advertising

The key to earning money from displaying ads is largely determined by your main revenue model. Do you plan to rely mainly on the ad clicks themselves? Or using display ads to encourage your users to upgrade to the paid version of your app?

If you decide to focus on the ad click model, then it’s best to create a free app that will be highly useful or fun to use on a frequent basis. The ads displayed in your app must be unintrusive, but still bold enough to catch user attention.

Test the ad performance

There’s a very fine and often tricky line between displaying ads in your app to reach your revenue goals versus showing too many ads that drive your users away.

That’s why we highly recommend you to test different ad display options for your in-app advertising. For example, you can test different placements, formats, and display times to show ads to see which combination gets the most clicks or upgrades without affecting retention or leading to app uninstalls.

Create a great user experience

The more testing you do, the more likely you’ll be able to find the right balance between revenue generation and a great user experience. In addition to monitoring your app analytics, we also encourage you to read the Comments and Reviews about your app in the app stores - often times you’ll get specific feedback from users about how they really feel about your app and ads experience as a whole.

Once you find that balance between ad revenue generation and maintaining a great user experience, it will form a virtuous cycle that leads to positive user reviews, more downloads, and eventually more revenues. Feel free to visit the Google AdMob blog to learn the latest product innovations and customer success stories for app monetization.