Ultranet believes that the fundamental shift in the way users consume content today is very obvious since the majority has taken the advantage of mobile phones for daily tasks. Mobile users have gradually moved away from using their mobile browsers to focus on a wide range of apps across various verticals. This affinity for in-app applications has changed app developers’ perception of different monetization strategies. Application developers who follow best practice developments will certainly take advantage of rapidly growing revenue streams in the future.
Do you ever face situations where you are not able to generate revenues successfully even though you have put your best efforts in app development? Ultranet is here to share some monetization strategies that you can employ to improve your revenues significantly:
Current State of App Monetization
- Ultranet noted that advertisement is the most powerful monetization tool among app developers. Therefore, Ultranet anticipated mobile games to generate more than RM343.6 billion of global advertising revenue by the end of this year as compared to RM312.2 billion in 2020.
- Ultranet figures out that app developers nowadays begin to rely on in-app advertising to generate higher revenue. 24 percent prefer advertising compared to 13 percent who prefer consumable in-app purchases and 9 percent who prefer non-consumable in-app purchases.
- There will be more and more app developers will switch from traditional ad units to new and more lucrative ad forms such as native, rewarded ads and interstitials based on Ultranet’s observation.
Primary Concerns of App Developers
- Ultranet found out that there are many App Developers end up in spending a lot of time on monetization related procedures such as integrating & managing multiple ad network Software development kits (SDKs), managing billings & payout from different partners and optimizing waterfalls. Therefore, there will be less concentration on creating better app features and improving the app experience. Whereas, this is one of the most crucial areas where mobile users feel satisfied and are much more likely to use mobile apps again in the future.
- Ultranet noted that Ad Mediation is a big move towards achieving nirvana ad revenue and maximising app profitability. However, less than 20% of top free applications use Ad Mediation SDKs (74 percent top free apps have more than 20 SDKs integrated).
Key Revenue Generating Secrets
Ultranet has figured the factors that may cause a drop in revenues and how app developers can maximize it using the right ad monetization solution.
- Latency, render rate and real-time yield optimization are three major factors that Ultranet believe that it will impact ad decisioning – the better it is, the higher is the revenue and fill rate.
- Ultranet figured out a few methods by which latency can be reduced, render rates and yield optimization can be maximized.
Here are some interesting secrets to help app developers stay ahead of the curve:
- In-App Video Ads are Booming
More than 80 percent of top free game apps are monetizing with video ads
- SDKs are the backbones of every app
On average 28SDKs are integrated in every top free app
- Game Apps are fond of SDKs
79 percent of game apps have more than 20 SDKs integrated
- Ad Mediation is picking up
23 percent of top free game apps have embraced ad mediation for monetization
- Key revenue Generating Secrets
How latency, Render Rate and Yield Optimization play a critical role in ensuring high fill rates and revenues
Conclusion
Ultranet wants app developers to be able to improve their knowledge of the current app development situation to make a wise decision about how to maximise revenue. With that, app developers can save their capital by investing in the wrong path that leads them to a failure to create a profitable mobile app. Ultranet once again reminds you all that there is a need to ensure the long-term success of your mobile app by keeping customers satisfied to maximize your revenue.
Ultranet – For further inquiries on any of our expertise or services, whether it is for website design & development, mobile application development, or digital media marketing, please feel free to contact or WhatsApp +6016 203 2000, email [email protected] or visit ultranet.com.my. Thank you.
