The 8 Greatest Mistakes of App Monetization

The ultimate goal of every mobile app owner is to earn money. While many challenges are involved starting from designing to building the app, even the monetization journey is not a piece of cake. Everybody tells you the tips and tricks and best ways to monetize an app, but what are the things you shouldn’t be doing during the process? Let’s look at the answer to this question.

Read on to learn about all the don'ts of app monetization.

1. Not having a monetization plan

   You’re living in a bubble if you expect to start earning from your app without having a plan. Especially because mobile apps are becoming more prominent every day, it is important to have a monetization strategy in place to gain maximum revenue. In today’s age, in-app advertising is the most effective way of monetizing. Other app monetization strategies could be in-app purchases, sponsorships, the freemium model, etc., depending on various factors such as your target audience and budget.

   On the other hand, having a monetization strategy and not making the best use of it can be a huge hindrance. For instance, underutilizing your ad inventory in in-app advertising leads to lower fill rates and eCPMs and, in turn, decreased revenue.

2. Sticking to a single monetization method

   Relying on a single monetization strategy is a big no! There is a reason why there are multiple methods available out there. Try them out before deciding what works the best for you. In fact, app publishers today even swear by hybrid strategies to increase their revenue and stay a step ahead in the game. Here are some examples for hybrid strategies:

   • If you’re monetizing your app with ads, also have a No Ads option where users pay to stop seeing ads, especially in gaming apps.
   • In the case of OTT apps, you can have a premium plan that requires users to subscribe to go ad-free.

3. Trying to monetize as soon as you launch

   While having a monetization strategy is a must, it is also necessary to identify the right time to monetize. If you have just launched, we recommend focusing on creating highly effective user acquisition campaigns. Next, take time to understand your users - will they opt for in-app purchases and premium subscriptions, what are their demographics, and other information that can help you curate a successful strategy. Besides, utilize the initial days to build a user experience that fosters user retention. Always try to follow app monetization’s best practices to achieve the expected results.

4. Being too pushy about in-app purchase offers

   Master the difference between showing offers and bombarding the users with offers. Especially with gaming apps, pushing too hard to sell may irritate the players and force them to abandon the game. Even if you retain them, they will get habituated to ignoring your offers, and that’s how easily you can lose an opportunity to monetize.

5. Ignoring the competitors

   Oblivion is a bad idea when it comes to competitor news. What are they up to, how are they monetizing, what is their strategy - find answers to these questions to stay on top of competitor updates. Always be aware of what others in your domain are doing, specifically for two reasons - to take inspiration and to enhance your monetization strategy.

6. How not to monetize your app with ads

   If you are looking at ads as an app monetization method, here are the things you must avoid doing.

   1. Not knowing about policy violations

      When opting for in-app advertising, you must be aware of the practices that can cause policy violations. A policy violation occurs when the ads don’t meet a set of pre-approved criteria in order to be shown on mobile apps. Ad networks may limit ad serving, and there are chances that the app will be taken down from the app stores if it does not adhere to the policies. To avoid this, keep yourself updated about the policies and ensure that your ad placements, formats, and content meet the policy guidelines.

      To check for policy violations, you can use an app monetization platform such as GreedyGame AdX that not only helps boost ad revenue but also achieve Google policy compliance in ads.

   2. Not worrying about ad quality

      We can’t stress enough the importance of ad quality. What ads you’re showing and when you’re showing them should matter as much as ad revenue. By blocking competitor ads, you can avoid losing users to your competitors. Also, frequent ads, sensitive ads, disruptive ads - all these are not only bad monetization practices but also bad UX practices. As much as you worry about user experience in the initial days, do it even when you’re trying to monetize.

   3. Showing ads randomly

      The ads you show in gaming apps should be planned strategically. Placing ads in parts of the game that users might never explore, showing them abruptly during the game, and playing them too frequently are practices to strictly avoid.

All said and done, there’s one more thing you should never do - to expect an immediate boost in earnings. Any strategy will bring results only gradually. So take your time in the process. Refer to an app monetization guide or reach out to us to learn about the best ways to monetize an app!