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Don'ts of app monetization: 8 practices to avoid at all times
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 to help monetize your app better, 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.
- Not having a monetization strategy
- Sticking to a single monetization strategy
- Trying to monetize as soon as you launch
- Not knowing about policy violations
- Not worrying about ad quality
- Showing ads randomly
- Being too pushy about offers
- Ignoring the competitors
1. Not having a monetization strategy
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 strategy
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 a game through ads, also have a No Ads option where users pay to stop seeing ads.
- 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.
4. 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.
5. 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.
6. 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.
Our ad revenue optimization platform - SDK X, is powered by the Smart Refresh feature that automatically finds the right refresh value for each ad unit. So no more hampered user experiences!
7. 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.
8. 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.
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, and reach out to us for assistance!