Pulling together some of the latest numbers on mobile app monetization trends from various sources - it is clear the gap between mobile usage and ad spend is closing - fast. The "Mary Meeker Report", or the annual "Internet Trends" presentation from KPCB is an industry favorite.
eMarketer predicts that in 2015, advertisers will spend $64.3 billion on mobile advertising globally, up 60 percent from 2014. And by 2018, mobile ad spend will reach $159 billion, or 63 percent of global digital ad spend.
Video ads for mobile are booming!Led by companies including Vungle, Ad Colony and Chartboost, video ads are forecasted to grow at a CAGR of 73% to $4.4b by 2018 in the US alone.
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The model for many mobile apps is to optimize an app for max LTV, identify and optimize user acquisition channels, and optimize the app listing for max search/organic exposure. Ad revenue made up around 40% of total app revenues across Google Play and the App Store in 2014. As advertising spend moves from TV, Print, Radio and even Web to Mobile, and specifically Mobile Apps - ad revenue stands to become an even more important component of monetizing a mobile app.
We see an average of $10 eCPMs with 100% fill rates when implementing video ads in our apps. Of course, optimizing the video ad placement is necessary. Any new ad format and ad placement should be evaluated using retention and engagement data/KPIs, and not just ad revenues. But - because mobile video ads monetize so well - you can remove the often ignored banner ads, interstitial ads etc.. One reason adding video ads is growing so quickly is the longer ad format is integrated with unlockable content (virtual currency, customization etc..) as an alternative to an in-app purchase. Video ads open up the opportunity for “incentivized” or “opt-in” ads. Users are able to engage more deeply with an app without purchasing content, which has shown to improve retention and lifetime value.
The data and projections above should illustrate the opportunity in video ads for your mobile app monetization. Gummicube can help you execute a monthly app optimization strategy, and identify trending feature searches.
Ghostly happenings are among us... and in your app listing too? If you aren't leveraging the power of app seasonality to make relevant tweaks to your store listing you're leaving precious engagement and conversions on the table.
Developers on the iOS App Store should plan in advance of the upcoming Holiday Schedule to allow enough time for apps to get approved during the busy holidays.
App Store Optimization is an involved process that should be regularly revisited based on recent changes in trends. Iteration is one of the key drivers for success in ASO.