Video and display ads drive revenues for mobile apps

Anne Freer | November 11, 2021

App Business, App Marketing

The app ecosystem has seen rapid changes over the last few years following lockdowns and changes to iOS privacy settings. That means developers may have had to adapt new means to engage their users or promote their apps.

New research from AdColony and Fyber sheds light on some of the most common marketing strategies by app developers.

Gaming apps predominantly use video ads to drive revenues while non-gaming apps rely on both videos and display ads. In-app purchases were significantly more popular with gaming apps while native ads worked better for non-gaming titles.

In-app purchases are also linked to engagement and one of the strongest predictors for monetising success.

Rewarded vide is still the most widely used monetisation method for gaming apps while non-gaming titles have banner display ads.

Video generates considerably more revenue (50%) compared to display ads (28%).

However, respondents allocated their revenues across in-app ads and in-app purchases in a fairly balanced manner.

When it comes to ad effectiveness, rewarded video didn’t take the top spot. Instead, interstitial video and display ads as well as banner ads all outperformed rewarded video.

Interstitial video and display ads also had the greatest impact on UX.

Interestingly, programmatic solutions are more important for gaming apps than for non-gaming titles. Publishers also need to update their games regularly in order to retain users.

Trust is as important for publishers as it’s long been and remains one of the top qualities in searching for a monetisation partner.

The study also noted that the effect associated with Apple’s privacy changes on the app economy remains to be seen.

By signing up you agree to our privacy policy. You can opt out anytime.