App Monetization: Utilizing Video Ads to Get the Best Results

App advertising has grown drastically in the past couple of years and it has become an economy of its own. Everyone is expecting that this trend will continue and that the growth will remain consistent as there are more and more mobile devices each year. On top of that, more and more people are getting used to using their mobile phones constantly. As good as this trend is, it can also be bad in certain situations. There is more opportunity for app developers to launch their products and present them to a growing number of potential consumers. However, this also means that there are more and more app development companies looking to get into the market. This is why it has become very important to learn which app monetizing method is the right choice and execute it flawlessly. In-app video ads are one of the most common choices, simply because of the fact that more mobile users are consuming video content than ever. This concept includes adding short video ads in your app and making money from them.

How video ad monetization works

In-app video ads are usually 15 to 20 second long video clips shown to app users, and they are provided by a video ad network. In most cases, free apps use this monetization method as the only source of income, because it can be very profitable. On the other hand, there are some paid apps that have in-app ads as well. A lot of app developers want to provide their users with an amazing, uninterrupted experience, but this method of monetization is extremely effective and it can be implemented very easily, which is why it’s so popular. In-app video ads include very short video clips and this is why they are so effective. Apart from the fact that these clips are around 15 seconds and they resemble watching videos on YouTube, their video format also makes them effective as video content, which has proven to be the most effective advertising tool. There are two models of in-app video ads:
  1. PPC (Pay Per Click)
  2. CPM (Cost Per Thousand)
PPC advertising is where you get paid every time a user clicks on a video ad, while the CPM model is where users only have to watch the ad.

When to go with in-app video ads

One of the most important things when it comes to making money with this model of monetization is to have  lot of people download and use your app on a regular basis. Simply put, you will not get any views or clicks on video ads unless there are people out there who are using your app. The math is quite simple – the more people use your app, the better your monetization strategy will perform. If you are unable to achieve this, going with some different method would be the right thing to do. This is why it’s generally a good idea to offer your app for free and when you get a stable base of users you can include this monetization option. Additionally, you can offer your users the option to pay for a premium version of your app, where ads will not appear, and make money this way as well. Leave it to people to decide and in both cases you are the winner. The point is to make sure that your app gives them a great experience and that it is useful to them, even though they occasionally have to look at some ads.

Why is video app monetization the best option?

Video app monetization offers many advantages compared to other app monetization models. The simple nature of video content is such that people get engaged more in them and they are more likely to pay attention to this type of media than on ad banners, for example. Additionally, video ads can be easily integrated into an app without causing any problems. Another reason why video ads are so effective is because of the fact that people are simply more likely to tolerate video ads on their mobile phones, as opposed to watching them on a computer or their TV. With targeted ads and call to actions, the engagement of these videos is far greater than any other advertising material. A short video can tell viewers a lot and use various visual aids to engage them and get their attention. On top of that, videos don’t require any effort from the users and they can easily understand the message that the videos are trying to deliver. All of these factors together make in-app video advertising the most effective monetization method. This means that both the advertiser and the app developer can potentially get great results from this business arrangement.

In-app video ads don’t cost you anything

One of the best things about this monetization model is the fact that it doesn’t cost you anything. You won’t have to make additional investments and you can quickly start showing ads to your users. The only thing you have to do is find a reliable in-app video advertising network and contact them. In no time, ad videos will be implemented into your app and you can start making money out of it. Still, as we mentioned before, it is important that you have a lot of people using your app, as they are the ones that will fuel your profits. Additionally, make sure that the ads you implement are relatable to your users – not only will this increase the chances of them watching or clicking on an ad, but they also won’t be bothered that much by them. If the ads don’t ruin their experience, but work as an extension of the app experience, then you’ve hit the jackpot.

Conclusion

If your app has no form of monetization, in-app video ads are a great opportunity to start generating money from it. When you find a good ad network, they will offer you support for all of the largest platforms and make sure that the ads are effective, meaning that you won’t have a lot of work do around the whole thing. The only important thing is to find a reliable ad network with a good reputation and plenty of knowledge.

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