Have you seen those ads while playing a game, booking a movie ticket or maybe doing an online recharge? Mobile Ads always have been a chief way to earn revenue and most of the businesses have relied on them as a source to mint some money with their apps. The reason it proved to be a prime source of monetization is it provides them with an easy and consistent way to add a vent of earning to their app.
Well, not anymore – as reveals the latest report from DeltaDNA.
As we look into the shadier side, for many apps it has proved to be a reason for losing users, intruding their time and patience with which they interact with the app. These ads appear (more appropriately pop or wiggle) when you clear a level of your game or switch between modes of your app, making you feel interrupted and even grumpy at times.
Thus, making it slip from the top grossing revenue source for mobile apps – losing it to in-app purchases which proved to be more sensible and resourceful way of earning money for many app businesses lately.
Today, if you dig out the stats, you would find in-the-ads revenue to be falling behind in-app purchases to a noticeable extent.
Image Source: BusinessofApps.com
Revenue from Ads is dropping in 2016, compared to in-app purchases
The report from DeltaDNA also reveals that only 38% of businesses continue to consider ads to be an important monetization strategy while over 50% of developers consider ads as a necessary evil.
In the survey, developers were asked to describe how they feel about ads. 38% said it should be followed to ensure revenues. Most of which were supporting it as they believed it has a potential to tap non-payers (who don’t otherwise like to invest into or buy anything). 51% found it a necessary evil and would like to get completely rid of it as a source of revenue if they have a dependable earning option to it. Most of them condemned it to be ‘engagement blocker’ and thought it ‘scares off’ users.
Image Source: BusinessofApps.com
Ads are seen as a necessary evil, and not preferred as a way to engage users
Quite opposite to which, In-App purchases gathered a gainful response as the most qualified earning source helping developers to get rid of all the threats and inadequacies of Mobile Ads, allowing them with more user-friendly and ingenious references to committing to monetization.
The study further revealed – In-App Purchases allowed them to go with innovative and expressive ways to influence a purchase, without making any foul pushy attempt to sell or proving any impediment to the flow of the app. Further, clubbed together with engaging ideas of gamification, affiliate programs and reward systems, In-App Purchase has proved to be a great way to monetize apps so far this year.
And not surprisingly, mobile app developers and owners are moving more into the refined and persuasive vending options that In-App Purchase has to offer. And as the trend predicts, this is only going to reach higher and get better with the spells to follow.
A marketing graduate, a deemed strategist, a sure geek - Tushar is a fine blender of the art and science of writing. When it comes to tune up content with commerce, he knows the trick. For him, if words don’t make you think and beat, they are not worth your time. A crazy foodie, an unfailing jogger – that’s him off the desk!
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