Revenue ModelsThere are three different ways app developers make revenue from their apps Paid Apps- By selling apps for a fixed amount Freemium Apps- Make a free lite version and earn from in-app purchase for premium features In App Advertisement- Free Apps which show ads and you earn revenue when users click on ads.
Why Display Ads? Studies have found that ratio of downloads for free to paid apps is 400:1. Most developers have noted that in long run revenue from advertisement is more than sales revenue App piracy is a big concern, paid apps suffer from revenue loss due to it. Apps with advertisements are safer option for developers
Growth of In App Advertising A report published by Flurry last year predicted that In-App Mobile Advertising will Overtake Online Display Ad Spend By 2012. The growth chart on next slide shows how more and more marketers are using in app advertising, which improves CPM rate, effectively meaning increased revenue for app developers.
Ad networks vs Your Own Ads Once you decide to integrate Ads within your apps, next step is to choose the type of ads you wish to display There are various Ad networks which allow you to integrate third party advertising in to your application without having to worry about selling the advertising, collecting on invoices, or filling the inventory
Ad networks vs Your Own Ads Or you may wish to show your own ads Another option is to use Ad Exchange, will allow you to integrate multiple ad networks within your app, making sure that inventory is filled, while also allowing you to run your own ads within your apps.
Why Use Ad Networks? Most Ad networks work on bidding mechanism where advertisers bid for the ad spots. In general, it will be better option to use an Ad network if you dont have big advertisers, or have your own ads. You can always use your own ads along with Ad networks using Ad Exchange or server side scripting
Mobile Ad Networks AdMob is one of the worlds largest mobile advertising platforms, acquired by Google in 2009. AdMob offers advertising solutions for many mobile platforms, including Android, iOS, webOS, Flash Lite, Windows Phone 7 and all standard mobile web browsers
Mobile Ad Networks iAd: iAd is a mobile advertising platform developed by Apple Inc. for its iPhone, iPod Touch, and iPad line of mobile devices allowing third-party developers to directly embed advertisements into their applications. It is available only for Apple devices
Mobile Ad Networks Millennial Media is one of the leading independent mobile advertising platform company. While AdMob and iAd considered little biased towards Android and iOS platforms respectively, independent ad networks like millennial media have good inventory for all platforms.
Mobile Ad Networks InMobi: InMobi is another leading independent mobile advertising network in the world. InMobi is a performance based mobile ad network, which helps publishers monetize their inventory and helps advertisers reach their audience.
Mobile Ad NetworksFew other leading Mobile Ad Networks are: Brightroll GreyStripe Jumptap MdotM MobClix ZestADZ
Why to use multiple Ad Networks? A fill rate is the ratio of how many times an application requests to show an application and how many times it actually shows up. You’d think it would be 100%, but it’s never 100%. This means, sometimes ads aren’t shown when they are supposed to, which obviously effects how much revenue you make. How do we choose one advertising platform that has the highest payouts but also has a high fill rate?
Using Multiple Ad Networks Since it is hard to find an ad network that has the highest payouts and 100% fill rate, we use Ad Exchange(also called Ad aggregator) like , Jumptab, Mobklix etc. Adwhirl They allow you to integrate multiple ad networks within your app, making sure that inventory is filled, while also allowing you to run your own ads within your app.
Summary Using In App Ads can be good model to earn revenue from your apps. Ad networks are preferred as they have higher CPM in general Leading Ad networks are AdMob, iAd, inMobi, Millennialmedia etc. Ad exchange allows you to have multiple ad networks as well as your own ads.