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How to increase app revenue - 9 Hidden Challenges

Sukanya VS

Updated on August 11, 2023

How to increase app revenue

In the ever-evolving landscape of mobile apps, app developers and publishers encounter a myriad of challenges in their quest to increase app revenue. While the app ideation, creation, and design process calls for considerable effort, the ultimate goal for app developers is successful monetization. This article will delve into the multiple problems app developers run into, understand their causes, and talk about how to resolve them.

9 monetization obstacles Faced by app developers

  1. Lack of awareness of monetization tools

    The lack of awareness of monetization tools is a huge challenge for app developers as it hampers their efforts to increase app revenue. App developers might have limited market knowledge and the availability of diverse tools. Due to the rapidly evolving stride of the ad tech space, developers might find it difficult to keep up with every new tool.

    Some developers also need to invest more time in researching monetization tools and strategies. It is common to focus on the development aspect of the app and overlook app monetization.

  2. Publisher Account creation on Google or other demand partners

    Creating a publisher's account on platforms like Google or with other demand partners can pose certain obstacles for an app developer and hinder their goal to increase app revenue. These demand partners have complex registration processes, multiple requirements, documentation, and verification procedures.

    Apart from this being a time-consuming process, app developers often do not have the proper guidance to create an account. Technical integration of app monetization SDKs or APIs also proves to be challenging.

  3. Lack of user engagement

    Apps rely on advertising as a critical revenue stream. If a user is not engaged with the app to spend enough time on it, there is less likelihood of displaying an ad or interacting with one. This will directly affect crucial metrics like impressions, clicks, or conversions. So, it will not be feasible to increase app revenue if the user refuses to stay on the app longer.

  4. Defining the right ad placements

    Defining the right ad placements is another potential hurdle for developers in their app monetization journey. Due to complex configurations and the need to comply with ad policies, defining the right ad placements is a significant obstacle to while trying to increase app revenue.

    Developers need to understand various parameters like ad formats, ad size, placement, targeting options to optimize ad performance, and more. Additionally, finding the right balance between user experience and ad visibility is also an aspect to keep in mind while planning an app's monetization strategy.

    Poor ad placements can result in the following issues:

    1. Ads that interfere with the app content
    2. Ads that are placed poorly
    3. Ads that cannot be skipped
    4. Irrelevant ads
    5. Repetitive ads
    6. Inappropriate ads
    7. Low-impact ad formats
    8. Non policy compliant ad servings

    These ads can disrupt the user experience and cause them to uninstall the app. This will in turn reduce ad revenue to a considerable extent.

  5. eCPM floor optimization

    Setting an eCPM floor is about determining the minimum bid price that advertisers must pay to display ads in the app. Setting a floor too high will make the inventories too expensive for advertisers to bid on. Setting a floor very low can make the ad inventory synonymous with subpar quality. Many ad networks also have their eCPM floor which can vary in complexity.

    Understanding these processes and choosing the best ad network or opting for the best eCPM floor is a significant challenge that developers face in their journey to increase app revenue.

  6. Lack of mediation

    App developers often rely on only one monetization partner like AdMob. It is essential to explore alternatives to increase app revenue. Since developers narrow their approach to one demand partner, it limits their access to a diverse range of demand sources to impact their ability to reach a larger audience and maximize monetization potential.

    Without looking out for other Software Development Kits (SDKs) and diversifying demand sources, apps may not leverage different advertising platforms that could yield better click-through rates (CTRs) and monetization rates.

  7. Inventories that are unfilled

    Unfilled inventories usually lead to revenue loss and a negative user experience. This in turn takes a toll on a developer's goal to increase app revenue. Either due to a lack of demand or suboptimal; ad placement and targeting, ad spaces staying empty means poor app monetization strategy. Sometimes, due to poor ad placements, unfilled inventories can lead to decreased engagement as well.

  8. Data security

    Most apps collect user data for analytics purposes. Due to the open-source nature of these mobile apps, they are highly susceptible to cyber-attacks. Despite the numerous security protocols that app developers create, there is always scope for malware infiltration.

    This can lead to data theft, misuse of data, click fraud, and other complications, leading users to brand a particular app as malicious. In doing so, apps will lose credibility and users. This will ultimately take a toll on the app revenue.

  9. Not leveraging data

    Many app developers fail to monitor essential metrics like app installs, clicks, conversions, etc. This can prove to be harmful because the app developer will be unaware of the app’s popularity, its problem areas, and more. Monitoring data will also help detect any possible click fraud that the app might be experiencing.

How to resolve these challenges

ways to increase app revenue
ways to increase app revenue
  1. Know your app monetization strategy and tools

    App developers must stay informed. They must proactively research and learn about the app industry's latest trends, strategies, and monetization tools. They can do this by attending conferences or seminars, reading blogs, following videos, and more. Conducting thorough market research is a vital next step one needs to take to increase app revenue. This will help identify successful app monetization models that developers can emulate to ensure app success.

  2. Familiarize yourself with the demand partners and their policies

    App developers must first get a better understanding of the registration requirements, policies, and guidelines provided by the demand partners. Adequate preparation can help streamline the account creation process. App developers can also seek help from support channels and developer communities. Additionally, staying informed of policy changes and reviewing guidelines will help developers increase app revenue easily.

  3. Emphasizing user-friendly ads

    App developers can increase their app revenue by focusing on strategic ad placements, non-intrusive ad formats, and captivating ad content to ensure user engagement. By striking the right balance between revenue generation and a positive user experience, maximizing user interactions with ads and driving app revenue is easy.

  4. Staying updated on popular ad tech practices

    Developers must conduct research and educate themselves on the industry's best practices. Developers need to thoroughly review ad network documentation and gain insights into technical aspects and policy requirements. A/B testing and optimization can help experiment with different ad configurations and gather performance data.

    Bad ad servings can be resolved by creating a user interface that captivates a potential customer. By ensuring that the design is top-notch and usability is not compromised, an app can retail users more efficiently, thereby helping achieve a higher app revenue and LTV.

  5. Analyze data and harness mediation

    Developers must analyze data from ad networks to understand the performance of different eCPM floor levels. By experimenting with different floor prices developers can find the optimal balance. Developers can also use mediation platforms to increase app revenue. These platforms offer tools and features to optimize the eCPM floor across networks.

  6. Leverage various ad mediation platforms

    To address the lack of mediation app developers can explore other platforms and integrate a broader range of demand sources. This will help gain access to main ad networks and demand partners, and ultimately increase app revenue. These platforms offer many ad optimization algorithms that can maximize app monetization with ease.

  7. Diversify ad networks and demand partners

    Developers can increase app revenue by filling unfilled inventories by integrating multiple ad networks to find a wider pool of advertisers. They can also optimize ad placement and target via a user's behavior and app usage patterns. Developers must also experiment with other ad formats and sizes to find out the combination that works best.

  8. Prioritize data safety

    It is important to safeguard an app user’s data. App developers can do so to increase app revenue by incorporating end-to-end encryption and blockchain technology. This will prove to be an essential factor in a developer’s app monetization journey.

  9. Make data-driven decisions

    App developers need to keep robust tracking mechanisms in place for data analysis. This can help gain insights into how well the app is performing, how users interact with it, and more. Monitoring data allows developers to detect any potential click frauds as well, ultimately helping the developer increase app revenue.

Navigating these challenges through innovative strategies and staying ahead of the curve is essential. App developers must constantly assess market trends, and user preferences to unlock their app's revenue potential.

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© GreedyGame Media Pvt. Ltd. 2023. All Rights Reserved.
India Office
GreedyGame Media Private Limited,
4th Floor, No.04, Zed Pentagon,
Hosur Main Road, Bommanahalli,
Bengaluru 560068 Karnataka
USA Office
GreedyGame Inc.
2093 Philadelphia Pike,
#2346, Claymont,
State of Delaware 19703
© GreedyGame Media Pvt. Ltd. 2023. All Rights Reserved.