Many of our app makers approach us to know how they can make money from a free Android app, and if it is really even possible. We want to tell you that it is possible to make money from a free Android app, but the amount of money you will make depends on the amount of effort and research you are willing to put in at the beginning of your app making career.
The amazing thing about app making is that once the app has been designed and developed, the business plan has been created upfront, and your marketing techniques have been decided, the app will then begin to make you money while you just sit back and get on with making new apps or going on holiday. The key is to understand the app market and your monetization options first, then plan and build your app.
What is the Most Successful Monetization Strategy?
The most successful way to make money from a free Android app is through mobile ads with over 38% of app makers opting to use some form of a mobile ad to monetize their apps. Today, we are going to look at the different types of mobile ads available in the market to help you can decide which best suits your needs.
Why are Mobile Ads So Popular?
Mobile ads are the most popular form of monetization due to the fact that app users do not have to pull out their credit cards in order for you to make money. Mobile app networks will generally pay you based on clicks, downloads, installs and impressions that are generated via your app. However, make sure to create an engaging, relevant, and responsive mobile advertising design to propel viewers act on your ad.
What Types of Mobile Ads are Out There?
Below is a list of some of the more popular mobile ad formats:
1. Banner ads
These ads appear at the top or bottom of your screen and can be viewed whilst the app is in use. They take only a tiny space on your app and therefore are considered non-intrusive. Banner ads generate the most impressions, meaning they, on average, are seen 5-7 times per app use. Generally, you can choose three mobile banner ad sizes for your campaign, i.e., 300*250, 320*50, and 300*50.
The downside to mobile banner advertising is that the CPI (cost per thousand impressions) that you will be paid is very low. Therefore, you need to increase the amount of time a user is on the app to ensure the ads are viewed as many times as possible to get any form of decent revenue from them.
2. Rich Media
These are audio or video ads that you integrate into your app. They are a great way to grab your users attention. The downside to these ads is that if your app user has a slow internet connection, these ads can take a while to load and can be perceived as annoying if they aren’t easy to mute or disable.
Interstitial or full-screen ads are most often used when apps are loading or paused. These forms of mobile ads are generally very well received if they are positioned at the right moment in time on the app. The timing of using these ad types is very important in order to not distract or annoy users. Although these ads get a lower amount of impressions than banner ads, the CPM is on average a lot higher.
4. Click to Call
This ad style allows a phone number within the ad to be called and leads to the app user directly contacting the business being advertised. This cuts out the middleman and is very popular with businesses looking to advertise. The revenue per CPM is again on the higher side in comparison to banner ads.
5. SMS/Text Ads
The most controversial of all the mobile ads. This ad form sends messages via push notifications or text(SMS) directly to users mobile devices. If used in the correct manner, this advertising can be the most effective of all, especially if the ads are time-sensitive and location sensitive.
For example, if the app sends ads for a Christmas promotion in a store in Florida to 1000 people based in Los Angeles in March, then the ad will be rendered useless. However, if it is sent a week before Christmas to 1000 people that are within 5 KM of the store being advertised, then the likelihood of conversion will be much higher than all of the mobile ad campaigns put together. This will take a lot more planning than the other mobile ad sources, but financially it would be a lot more rewarding.
How to Choose a Mobile Ad Type
There is no thumb rule when it comes to selecting the best mobile ad type for your campaign. If you don’t try out different monetization methods, you will never know which method best suits the needs of your app business. The app business is all about trial and error as each app is individual to the audience which it has captured. With ample ad formats and rich media components, there is plenty of room for creativity.
However, we have created a list of questions that can help you identify the best mobile ad type for your app marketing campaign.
- What are your ad goals?
- Who is your target audience?
- Are you planning to run a branding campaign or a performance marketing campaign?
- Which mobile ad platform is best for you?
- How long with the ad campaign run?
- What is your budget?
How Much Do Mobile Ads Cost?
The pricing of mobile ads will help you decide which model suits your budget. Here is a quick look at the different pricing models and cost for mobile ads.
Cost Per Click (CPC)
CPC refers to the cost you pay every time a user clicks on your mobile ad. With this model, you can get huge interaction with your advertisement, which in turn, raise awareness about your brand. However, there is no guarantee of post-click conversions. Cost per click can cost you anywhere from a few cents to several dollars.
Cost Per Completed View (CPCV)
CPCV is applied to video ads. It refers to the cost you pay when a user watches your video till the end. For instance, if you post a video of 30 seconds, you only have to pay if someone watches till the last moment. This will ensure that you are making a good impression on your audience before investing money.
Cost Per Impression (CPI)
CPI is a fixed price you agree to pay per 1,000 views of your advertisement. This model is highly effective for marketers aiming to raise brand awareness. However, unlike CPC, there is no guarantee of driving website traffic.
In today’s ever-growing tech era, you cannot solely rely on the quality of your app to drive more users or customers. The increasing growth of mobile advertising is propelling businesses to focus more on customer experience to get intended results.
Besides, mobile ads have become the fastest way to reach Gen Z audiences and sell your product or brand. The launch of 5G will also help you to easily deliver video ads, thanks to the super-fast internet connection.