4 Mobile App Monetization Mistakes you Need to Anticipate

4 Mobile App Monetization Mistakes you Need to Anticipate

4 Mobile App Monetization Mistakes you Need to Anticipate Monetization is a crucial part of any mobile app’s development.

 In fact, monetization is not some one-time event. Rather, this is an entire strategy, and you need to plan it prior to the development stage itself.
Today, we will talk about the most important monetization mistakes that may notably harm the state of your business. Being aware of them, you will be able to properly promote your app and continuously gain profits.

Random Choice of Ad Network
Often, developers opt for an ad network based on their eCPM – the effective cost per 1000 hits - figures. In practice, this should not be the only indicator that guides you when making the decision.
Consider also the fill rate – the number of ad content hits to the number of user demands for its display ratio. The higher this indicator is, the more effectively this advertisement area is used.
Pay attention to the terms of work with the selected service. Many advertisers prefer working on the CPI, CPA, CPC, and other models that imply payment for targeted user actions.
Ad networks working on the pay-per-performance model usually offer a high fill rate. However, publishers have no monetization guarantee in this case. Here, all dependents on whether the users will engage with your ad.

Wrong Ad Format
One of the most popular monetization models is in-app advertising. It is easy to integrate and brings profits just a week after the launch.
The main challenge here is to choose the right metrics to follow up. Besides eCPM, fill rate, view rate, and average revenue per user should always be in the center of your focus.
When integrating ads into your app, avoid making these two mistakes:
Wrong ad timing – an ad is displayed before an app finishes loading. As a result, this may interrupt the user interaction with the app. To prevent this, set up the analytics in Google Firebase or some other platform to track the users’ path.
Non-relevant ads – any advertisements not related to the app itself. Those only distract users. For example, a children’s educational app’s advertisement in an online casino app.

Monetization Model is not Scalable
As your app grows, you need to add new monetization options. Simply put, your monetization model must be long-term.
Adding new features to in-app purchases need to be justified. With no doubt, the ‘monetization crown’ belongs to ‘Angry Birds’ that actively uses paid access to new levels along with ‘rewarded’ video clips.
To design a proper monetization strategy, you should focus on the user journey (will not work for utilities and delivery services). Analyze the average session length, daily active users’ retention, and monthly active users’ retention. The logic is simple: the longer a user stays in your app, the more ads you can show him/her.

Poor Segmentation
You released the app, a couple editions wrote about it, the first two weeks people massively downloaded it, but then – sudden loss of interest. Sounds familiar?
When sales go down, it is important to understand which indicators you should work with instead of trying to improve all at once. Segment users not only by geolocation and gender but also by their behavior in your app. This way, you will understand which audience groups must be considered.
For example, this June a certain video download application had 250 + thousand downloads. At that moment, the main monetization model was Freemium with the 30-day free trial. After the trial, the users were offered to purchase the extended version of the app. Obviously, the rejection rate upon the trial’s expiration was high – 40%.
Having analyzed the audience, the app’s developer found out that 2% of users are the people aged 24 to 28 (let’s call them ‘Group A’), while the rest 98% were the students aged 18 to 22 (‘Group B’).  
Group A could afford to buy the premium version. Group B needed the additional functionality but was not ready to pay for it. Therefore, those users deleted the app after the trial was expired.
To bring that audience back, the developer began showing them ads in exchange for extra trial days. The solvent group B kept using the ‘ad-free’ app.

Sure, this list of mistakes is far from complete. Still, we highlighted the most serious ones.
To avoid these, app owners and developers need to regularly check for them throughout the entire app creation process. Only then will they be able to timely deal with any negative developments.

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