The survey from AppAnnie shows that in-app purchases and in-app advertising are the two most popular monetization methods for mobile developers.
There are many ways to gain revenue from mobile apps or games. Either it’s selling paid apps or games, providing in-app purchases or using some advertising, every method has its own advantages and disadvantages. But which monetization method is the most popular among mobile developers?
AppAnnie surveyed more than 1.200 mobile developers, and they share the result in their blog post. From this result, we can see what is the most popular monetization method for app or game developers. This survey also shows which ads format gives better revenue for free and freemium apps.
In-App Purchase and In-App Advertising are The Two Most Popular Monetization Methods
This survey shows that in-app purchase and in-app advertising are the two most popular monetization methods for developers, especially in games. Each of those was selected by 59% of respondents. Those two were followed by paid downloads.
But if we take a look deeper to the result, there is a little difference between games and non-games applications. Games were much more inclined to rely on IAP and in-app advertising. Each of them was selected by around 80% respondents. For the non-games applications, each of them was only selected by around 50% respondents.
On the other side, subscription method and commerce models are more popular for non-gaming applications. Subscription method becomes more and more popular, especially in entertainment application like Netflix (for movies) and Spotify (for music). Indeed, this subscription method fits more if it’s implemented in that kind of applications rather in games.
What Ads Format is Generating the Better Revenue?
As we have already known, in-app advertising is one of the most popular methods to gain revenue. But, which ads format is generating the most revenue for developers?
The result is video ads as it’s still the most popular format among developers, which is selected by 36% respondents. Static banner ads followed in second place with 22% of respondents, and static full-screen ads came in the third place with 15%.
In gaming, 57% of respondents indicated that those are the top revenue generators among ad formats. For non-gaming, static banner ads ranked first, with 35% of respondents noting that they generated the most revenue.
This data is quite interesting, considering video ads and full-screen ads often have negative impacts on the user experience. Both video ads and full-screen ads always “interrupt” users, sometimes without notification. It will become more effective if the developers use rewarded video ads, that give users some reward (additional item or unlock a feature) after they watch the video.
Source: AppAnnie. Edited by Devi