How can application developers maximize their revenue?

There has been a fundamental change in the way users consume content today. Mobile users have gradually moved away from the use of their mobile browsers to focus on a wide range of applications in several verticals. This affinity towards the application has changed the perception of application developers towards different monetization strategies. App developers who keep up with the evolution of best practices will definitely take advantage of a fast-growing revenue stream in the future.

A report from the Chocolate mobile video advertising platform called 'App monetization secrets to help app developers stay ahead' in partnership with Apologia analyzes the more than 1000 publishers and over 1700 free apps in Google Play and in the iOS store that covers America, Europe and Asia-Pacific Region (APAC).

Even after putting the best efforts in the development of applications, why many application developers can not generate income successfully? The report addresses this question by looking at the following aspects:

Current status of application monetization

Advertising is the most effective monetization method among application development services. By the end of this year, mobile games are expected to generate $ 39.8 billion in advertising revenue worldwide.

Application developers are starting to rely on ads within the application to generate more revenue. 24 percent prefer advertising compared to the 13 percent who prefer integrated purchases of consumables and the 9 percent who prefer non-consumable purchases within the application.

More and more application developers will move away from traditional ad units to new and more lucrative ad formats, such as native ads with rewards and interstitials.

Main concerns of application developers

Application developer’s end up spending a lot of time on procedures related to monetization, such as the integration and management of multiple ad network SDKs, the management of invoices and payments from different partners, and the optimization of cataracts. In this way, it leaves them less time to focus on creating better features of the application and improving the application experience.

While ad mediation is a great step to achieve ad revenue nirvana and maximize the profitability of applications, less than 20% of the most important free applications use an advertising mediation SDK (74% of free applications) they have more than 20 integrated SDKs).

Key revenues that generate secrets

·         In this report, we look deeper into what factors are causing a decline in revenue and how application developers can maximize it by using the right ad monetization solution.

·         Latency, rate of return and real-time performance optimization are three major factors that affect ad decision making: the better it is, the higher the revenue and the fill rate.

·         There are methods by which latency can be reduced, processing rates and performance optimization can be maximized, which are explained in detail in the report.

Here are some interesting highlights of the report that rationalize the fact that a smarter approach is needed in mobile ad monetization.