There are a number of ad formats you can use to increase your Android app’s revenue. Knowing which format is right for your app and audience can be challenging. However, with a platform that allows you to test different monetization services, the experience can prove easy and profitable.
A few of the more common Android ad formats include banner ads, pre-roll ads, and interstitials. Each format has its own benefits and pitfalls, and what works for you depends on your monetization needs.
When deciding on the perfect ad format, Android app publishers and developers often look to the effective cost per mille, or eCPM of a specific format. This monetary performance metric allows you to know your true ROI.
“If app publishers have a high eCPM, it means that the ads served on their app are doing their job and converting users,” Jasmine Cohen of ironSource explained. “The more users the ads convert, the more the app publisher gets paid.”
Knowing the eCPM of any ad format is definitely important, but there are other factors to deciding which format is best for your Android app. For instance, your audience and type of app can play a role in your future monetization efforts.
Let’s take a deeper look at banner ads, pre-roll ads, and interstitials to help you choose the best way to monetize.
Android app developers and publishers continue to use mobile banner ads for increased revenue, and the average eCPM for banner ads is $1, according to mobyaffiliates.
It is undisputable that banner ads have a lower average eCPM than interstitials or video ads, but they still have a number of advantages.
If you want to reach a large and versatile audience, banner ads are the perfect ad format. This is due to the fact that nearly every advertiser supports banner ads. Banner ads are also less intrusive than other ad formats, since they only occupy a small portion of a user’s screen.
Also, there are third party monetization services you can install that know how to make banner ads more profitable. For instance, InMobi, a monetization app service implements remarketing tactics that drive more in-app purchases, boost user base, and increases user engagement with ads.
Banner ads do have their disadvantages, mainly because other ads are becoming more innovative. There are rewarded video ads, virtual reality (VR) ads, 360-degree ads, and more. Banner ads are seen as the traditional, tried and true ad format, but they my fall behind new techniques.
Pre-roll ads for video are essential to boosting user engagement for your video ad monetization efforts. The window of time you get to entice app users to engage is shrinking each year. Running pre-roll ads in your app may make use of that time.
The CPM, or cost per thousand impressions, of pre-roll video ads was estimated at $12.50 in 2015. However, this number may be slightly lower today, as video and rewarded video ads take center stage as the go-to mobile ad formats.
One of the benefits of pre-roll Android ads in present day mobile marketing is that they can be combined with other ad formats to increase engagement. For instance, you can implement a pre-roll video into a banner ad. This will make traditional banner ads more interactive, and allow you to segment your monetization efforts more as well.
There are, however, some drawbacks to pre-roll ads. They are less popular than other types of video ads among younger users. For example, Generations X, Y, and Z all prefer rewarded videos over pre-roll video ads, according to a study by Millward Brown.
Interstitial ads are a powerful monetization format that has a very appealing ROI for all Android app publishers and developers. The eCPM for interstitials is on average $3.50 across all apps worldwide.
When you opt for interstitial ads for your Android app, you are solving the mobile real estate problem, since interstitial ads occupy the entire screen. This makes the ad unavoidable.
Compare banner ads to interstitials on any device, and you’ll see why this ad format is a more enticing choice to help you maximize your monetization efforts.
Here’s an example by InMobi . . .
Interstitials also provide a higher CTR and Conversion rate for Android app publishers and developers. Research by InMobi found that interstitial CTR was five times higher than banner ads.
Choose the Best Monetization Services for Your Android App
There are a lot of ad formats to choose from and plenty of third party monetization services you can implement into your app. In order to choose the best service for your innovative app, you need to put a few to the test.
The lowest average eCPM for Android apps is $1.25, according to AdTapsy. The highest eCPM is $6, and it may all depend on which monetization services you use.
How can you test out different services for your app? The answer is actually quite simple: by using Enhance. Enhance allows Android app publishers and developers to implement any third party monetization service in mere minutes.
If you choose a service and don’t think it’s a good fit for your app, you can uninstall just as fast, and have a new service ready to go in 10 minutes or less.
Enhance makes updating app services easy as well. Just one click and your third party services, whether they are for monetization, analytics, or user experience, will be updated and optimized.
Install the ad format and mobile SDK that fits your Android app without sacrificing user experience for your unique audience. Are you ready to enhance your app revenue?