In-App Advertising with Mobile Ad Networks VS In-App Purchase

The modern mobile app monetization strategies have opened the world to creative and innovative monetization for earning revenues. On one side, the world witnessed a boom in the mobile app development industry, whereas, on the other, in-app advertising flourished.

Advertisers do not just find effective modern ways of advertising but publishers also found ways to earn via ad serving. Mobile publishers got new and better ways to monetize, whereas advertisers got creative ways to market efficiently. But how did all this streamline become possible? The answer is mobile ad networks!

Yes, all these processes run smoothly today due to the development and advancement of mobile ad networks. The top mobile ad networks today offer great features that facilitate monetization and in-app advertising. To make revenue generation seamless for app publishers, mobile ad networks today offer mediation. In this case, one mobile ad network successfully links a mobile app to multiple other highest-paying ad networks that bring out greater revenue.

Monetization of mobile apps, however, does not only link to in-app advertising, mobile ad networks also offer other options such as in-app features and in-app purchase promotion. Besides, publishers can also use other strategies such as subscriptions that are not mobile ad network dependent.

This article, however, talks about mobile ad networks that offer both in-app advertising and in-app purchases, and how the performance differs based on revenues. Let’s get started…

What is In-App Advertising?

In-app advertising as the name suggests is the mobile app monetization strategy that involves ad serving within a mobile app to generate revenue. A mobile app publisher sets up ad placeholders within the app at various intervals to allow ad serving from the advertiser’s end. To do so, publishers require mobile ad networks to seamlessly connect them with ad networks with available advertisers.

In this case, if publishers want to maximize revenue, they need to choose the best mobile ad networks offering mediation of the highest paying ad networks.

What is In-App Purchasing?

In-app sales are what bring in revenue with in-app purchasing. This strategy revolves around users actively spending money on purchasing in-app items, features, keys, modes, and more. To effectively make the most out of this strategy, app and game publishers design and set up special features, game items, and modes for sale.

These are later sold in a creative and innovative way by using dynamic in-app ads, pop-ups, and often just flashy menus.

In-app purchase is gradually gaining popularity among publishers. But what is more interesting is its popularity among app users. People actively using mobile apps today find special offers as a great attraction to spend online in-app. All top mobile ad network today offer in-app purchasing for the monetization of apps.

So, how does using in-app advertising differ or is similar to in-app purchasing, especially when using a mobile ad network? Let’s explore how it works and how the revenue growth differs…

In-App Advertising VS In-App Purchasing

In 2020, it was reported that the app revenues soared up to 581.9 billion dollars. Whereas it has been forecasted that by 2023 mobile apps will be able to generate more than 935 billion U.S. dollars in revenues.

Within such statistics, where do in-app advertising and in-app purchases position themselves? Here are the key findings that you must hold on to…

Adding to the greater chunk of app revenues, users’ worldwide have spent over 380 billion dollars on in-app purchases in the year 2020. However, it is believed that out of the 935 billion dollars expected, paid downloads and in-app advertising will stand out in 2023. Whereas Sensor Tower estimates the global in-app purchase revenue for 2020 first half to be 23.4% higher than from 2019. Out of which, 21.2% in-app purchasing was done within mobile games alone.

Rapid growth is witnessed in revenue generation by both in-app advertising and in-app purchase. It is important to keep in mind that not all models can work for your mobile game or app to generate revenue just as they do for others. But the question still stays unanswered, which one among the two models is vital for publishers to use? The solution is simple and spot on!

Hybrid Monetization

Mobile ad networks let you monetize with in-app advertising and in-app purchase campaigns all at once. Where on one hand a publisher gets to place ads within the mobile app, he or she can simultaneously promote in-app purchases by using a mobile ad network.

To save app publishers from making tough choices between in-app advertising and in-app purchase, hybrid monetization comes in as a lifesaver. Hybrid monetization is when you merge two monetization models and make the most out of them together. So whether in-app revenues go up because of in-app advertising or in-app purchases, a publisher makes the most out of them together by using a mobile ad network.

In the case of merging these two models, a publisher can easily run ads to promote in-app purchases that he or she has planned to promote. Shoot to Kill – FPS Commando Shooting Game actively uses hybrid monetization by implementing in-app advertising and in-app purchases side by side. This game is being liked all over the world due to tactful monetization as well as staggering game play.

Besides, other ads from various advertisers can run side by side bringing in more and better revenue. So, what are you waiting for? Partner up with the best mobile ad network and open your doors to unlimited in-app revenues.

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