Advertising generates more than half of revenue sources for mobile app developers
With 55% of total mobile publisher revenue generated from ads, app developers are increasingly looking to continued growth in mobile publisher revenue.
The greatest contributor to this category is mobile video ad monetization. Indeed, 31% of mobile publisher revenue comes from mobile video ads according to a recent report by AdColony.
The report looked at top mobile game developers (90%), with a minority making non-gaming apps (18%) who were surveyed throughout EMEA (40%), followed by 34% in North America, 22% in APAC, and 4% in LATAM are finding revenue resources primarliy from ads.
Outside of advertising, publishers are far more likely to make money through direct in-app purchases than they are from paid installs or subscriptions. In fact, in-app purchases was the single greatest individual revenue contributor cited, driving 39% of total publisher revenue.
A vast majority of publishers (87%) reportedly feel that rewarded video ad placements provide a positive user experience and in-app purchases was the single greatest individual revenue contributor cited, driving 39% of total publisher revenue.
The next most favorable ad units were those that are well-integrated (native), short in duration (interstitial display), engaging (playable), or modest in stature (banner display). The least favorable ads were those that auto-played before (preroll) or amongst (in-feed) content.
When asked which monetization methods were most effective, publishers reported that rewarded video ads, in-app purchase systems, and interstitial video were all highly effective. As these methods account for a majority of publisher revenue and also rank well with respect to the user experience, this sentiment was not all too surprising.
The most popular engagement methods used by publishers were achievements, push notifications, value exchange ad integrations, and in-app events. This suggests that users must be rewarded and reminded while content must be refreshed.