One of the interesting abnormalities in the world of app monetization is the relatively low number of people assigned to it. UA acquisition departments usually take up much more personnel, while the main focal point for generating revenues in an app development company, is usually understaffed or assigned to the product team.
While this may not be the best policy, this is definitely the reality. Monetization is a shared responsibility across many departments in the company, including UA, Product & Marketing. This leaves any dedicated monetization employees in a serious dilemma – with low resources, where should they invest their time and effort the most? With ad monetization getting bigger even for IAP focused apps, this is a true challenge.
CallApp, a caller ID & call recorder app is one of those apps. With over 35M installs worldwide, our app is totally free to use, and while there are some IAP offers in place, most revenue is ad-related. Joining a very small team and being solely responsible for the app monetization efforts, I faced this challenge from the very first day – FOCUS. Granted, there is no limit to what you can focus on when you’re in charge of monetization. However, there is a definite time limit to (1) hours in the day and (2) Being able to concentrate without making too many mistakes analyzing data. The other major constraints are limited development resources and UX.
These limitations ultimately shaped up our 4 major, strategic responsibilities for mobile ad monetization that rise over and influence the day-to-day actions and task. We’ve put them to that to the test, and came up with some findings that helped figure out exactly what task our time will be best spent on.
Ad Frequency & Location
Right off, this is that one is the very basic element. Forget ad partners, forget business – determining ad frequency has a huge effect on the entire app eco-system. In the short run, ad location, and more importantly ad frequency influence development, usage, data, UX, user satisfaction. In the long run – ratings, reviews, PR, ASO and much more. We found that these types of changes may amount to 50% change in revenue. In term of development time, this is not an easy task, but as these changes aren’t usually done on a daily or weekly basis, it’s definitely barrable.
Focus on GEO’s
Ad monetization wise, app developers tend to give attention to 1 of the following:
- High eCPM yielding counties
- High impression yielding countries
- Countries that possess 1+2
In more cased than not, attention means full attention, and that means that countries that do not generate high impression volume or high eCPM are simply neglected. In most cases, neglected GEO amount to more than 25% of traffic. In order to optimize those loose ends, there is usually a need to work with more localized ad networks, expand and complicate your ad waterfall and sometimes work with additional ad formats. Not only does this burden your development team, it also creates tons of work for the person in charge of monetization. So, a tough decision. However, this clear subjective decision that varies from one app to another, usually influences over 20% of revenues, in average.
Adding More Ad Networks
The actual deciding factor on how many ad networks an app needs, depends heavily on the level of monetization you want to achieve. The actual number of monetization networks an app needs relies on 4 parameters, known as the FORM model which we developed in CallApp: Formats, OS, Regions, Maximization. The entire model has been widely explained (here), yet it embodies another critical decision in the maximization element: how much work are you will to make to get those extra 10 percent of revenue. These 10 remaining percent of revenue require some work from the IT side (adding more ad networks), and a lot of Monetization hard-labor analytics.
Setting Floor Price
If you monetize your app using Facebook and Google (and a few others), this is a must. There are automated mechanisms in place, by both ad giants, to make sure you generate a minimal amount of revenue, but true optimization cannot be reached without designated price floors.
When it comes to price floors, there’s a major difference between Google & Facebook: While Google’s price floor (via Admob’s & AdX) tend to merely set a floor from which your eCPM cannot go under, FAN’s floor prices are actually ‘target eCPM’, a level that sets the goal for its performance to reach, regardless of any other elements – CTR, impression and mainly fill rate. However different, both price floor mechanisms are a pretty powerful tool. They require no effort from the development team, yet a lot of attention from the monetization team. Price floors are affected by anything from ad frequency, GEO’s and seasonality, so they need to be monitored on a daily basis. A hell of a lot of work, with a 30% revenue bounce potential.
After experiencing the effects of these 4 pillars of strategic monetization decisions on all sides – revenue, product, development time, monetization time, etc – we were able to visualize these strategies, to better understand the role of the monetization team.
Effects Compared To Development Team Work:
Effect Compared to Monetization Team Work:
The last 7 months at CallApp taught me, first and foremost, that in ad monetization, focus & prioritization are strategic decisions. Time equals money, but it’s a lot more than your money – it’s the money you could have been generating doing something else to improve results. Not all apps will follow the same path in this time/effect/results equation, many simply just into the pool of the day-to-day duties without taking a single moment to breath and think about what they want to gain. The CallApp experience has definitely taught me that everyone should give it some serious thought. That will ultimately lead to better result in the long run.