3 Appnomoics Tips – Balancing IAP and Advertising

One of the challenges of free 2 play is that most app can’t relay on a single source of revenue. Sure, SuperCell and King.com pulled advertising out of their games and are relaying purely on In-App Purchases. Here is a news flash – you are not them. More likely than not – you are averaging somewhere between $0.01 to $0.10 ARPDAU and need additional revenue sources. If you look through our blog – you can find a few ideas how to monetize your game. Balancing between them, however, is a totally different story so here are a few tips for doing just that.

The cutoff point for introducing ads is $0.05 ARPDAU

Based on a calculation made by InMobi, if you are making more than $0.05 ARPDAU you shouldn’t worry about advertising. If you are making less, advertising can become a big source of revenue for you. In fact if your users play 5 minutes per day you will be making more revenue with ads compared to IAP at that level.

Even the payers start as non-payers

Payers start as non payers. Don't scare them away with ads if you want to keep them in your game and eventually convert them.Some games start off by blasting their users with ads and offer an option to remove ads for a $1. That’s not a great practice. If users don’t like the ads they are much more likely to choose another game than to pay you a dollar. This means that your game can lose potential whales for a small profit of a few cents. A much better strategy is to focus the first few days on increasing game engagement and getting the user to make a real commitment like sharing, rating or engaging with the in-game coins.

Simple segmentation on the client side

Unlike some really sophisticated services that will take you a month to integrate and master, the method suggested here is rather simple and doesn’t even require a server. Simply flag the users who made a purchase and apply the following behavior:
  • Reduce ads and focus them on cross promoting your own titles. If you don’t have other titles – try to get a premium deal for those users.
  • If you are offering an ‘earn coins’ option in your game (you should) – remove that option for payers
  • Make sure they always have more items to buy by updating your app with more content
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