Study: App publishers earn 55% of revenue from ads
- Eighty percent of top publishers use both video and display ads to monetize their apps, according to a report by AdColony made available to Mobile Marketer. Its survey found that ads generate 55% of mobile publisher revenue on average, mainly from video ads (31%).
- Publishers are most enthusiastic about playable ads, which let users engage with a videogame after tapping an ad, and immersive ads, per the report. Less than half of app publishers use playables now, with just 25% saying they view them positively.
- Pre-roll video ads have the lowest ranking among best user experiences, AdColony found, while 87% of publishers said rewarded video offers one of the best user experiences. In-app purchases have the best effect on the user experience, while subscriptions have the worst.
AdColony's survey has some interesting insights into the direction of mobile app revenue, which is growing more dependent on sponsorship. App developers are wary of overwhelming their users with intrusive ads, but smartphone users appear willing to accept marketing messages if they like the app and support the publisher's efforts.
Playable ads are a relatively new format that publishers and marketers are testing, and AdColony's survey suggests they're a promising revenue source. They generally trade a few moments of a viewer's attention span for a marketing message using sight, sound, motion and a high level of interactivity. Twenty-four percent of publishers ranked playable ads as providing one of the best user experiences, putting them behind rewarded video ads, native ads and interstitial display ads.
Advertisers should keep in mind that, like all channels and platforms, playable ads come with drawbacks. Another AdColony survey showed that playables made up 2% of total ad spend in 2016, and this year that number rose to 4%. Not all platforms support playables yet, which could at least partially explain why the tool isn’t scaling quite as quickly as some might’ve hoped.
When it comes to retaining users, 71% of publishers use a mix of three or more engagement methods, with achievements, push notifications and value exchange ads the most popular means of engaging users.