Should You Consider Ad Networks To Generate Revenue With Your App?
Ads. Pop-ups. Banners. Users are constantly being bombarded with pressure to buy things in digital media. We could have said, “Users are constantly presented with the opportunity to buy things”, but the reality of digital advertising is that it is often perceived in a negative way to the vast majority of users.
The proliferation of ad blockers on browsers is proof that not only have large numbers of users been trained to ignore ads, many are seeking out ways of removing them from sight altogether. That said, many apps and websites still use ad networks as a way of generating revenue and sometimes it works very well. Here is the GotAnAppIdea.com litmus test for when ads and banners make sense for your app:
Is your app free?
Keeping your users happy is the absolute most important factor when making a monetization decision. If you are offering your app for free, then this might be a great way to monetize the traffic you’re getting for the valuable technology product or service you’re providing. Users of free apps typically have a much higher tolerance for the (occasional and tasteful) use of banner ads.
If you’re already charging users a fee to download the app (and this is doubly so if you’re charging a recurring monthly or annual fee), trying to make additional money by showing ads will just you’re your audience mad. We’ve even seen cases where it back-fired when users took their business elsewhere or uninstalled the app altogether. Making a few extra bucks isn’t worth losing your audience, because the eyes on your app are where the value is!
How many daily/weekly/monthly views or impressions will you get?
Eyes are the prize. If you’re someone who gets a couple thousand unique views or sessions in your app or on your website per month, you’re not likely to make enough money on ad revenue to make it worth it to change your users’ experience. Conversely, if you have millions of unique views or sessions per month, then you may be able to generate enough revenue that it will make sense, and it’s possible that the offset of potential lost customers who don’t want to see ads will be balanced out.
Is this going to launch the very first time with ads or are you trying to add them in with an existing user base?
If your app is brand-spankin’-new, and no one has an expectation of their experience yet, then you’re golden to give ads a go. It’s much easier to take ads away later if you find you aren’t getting enough bang for the buck. Be realistic about how long it will take to build up your audience, however. You don’t make money if no one is seeing and clicking on your ads, so remember to be patient and ensure that your marketing efforts are working to put your app in front of users.
If, however, you’re introducing ads to an existing, loyal user base, tread very carefully. We highly recommend doing A-B testing, limiting the audience who receives the ads in the beginning to a small subset, and watching how that subset’s interactions compare with your entire user base. If you find an unusually high number of uninstalls or a higher-than-average drop-off in usage, then your audience is telling you something. Doing A-B testing lets your audience talk to you without risk on a larger level. (This is an area where new app design ideas and app prototyping can come in handy!)
How will it impact your “brand perception”?
This is really the crux, and the previous considerations are all distinct cuts at it. The name of the game is perception: how do your users perceive your app; is it super fun or useful to them; can they live without it. These are all things you need to consider before introducing something as annoying as ads, because if your app isn’t “sticky” enough to survive, you will have lost your audience AND you won’t make money on ad revenue.
Ad revenue is one way to increase app revenue, but there are likely other opportunities you haven’t even considered yet. Are there other products or services directly in line with what you already provide that could enhance the value of your app to your existing user base? How profitable are your existing users? Have you defined a product roadmap that adds value that can be monetized?
The bottom line is to be cognizant of your users! If you have a reliable, loyal, happy user base, you can always find new ways to increase your revenue.
GotAnAppIdea is an app design and app development company, primarily working with new ideas in the earliest stages of incubation. As one of the top app development companies in the Denver, CO, area, we help new start-ups get from idea to execution planning quickly, efficiently and with as little time and money invested up front as possible. Our philosophy is that failing quick and often leads our clients to better outcomes, bigger businesses, and healthier work-life balance. Need Android app development, iOS app development or app design help? Call us today!