Thursday, January 20, 2011

Advertising Do’s and Don’ts for App Developers in 2011

Developers have never had so many options for monetizing their apps. Luckily they’ve also never had so much information on what works and what doesn’t. At Greystripe, we are lucky enough to see what's worked across apps, and want to share some best practices with our whole network. Here are a few do’s and don’ts for app creators who want to make the most in 2011.

Do: Consider Multiple Ad Formats
When mobile ads first hit the market, they were mostly “performance” ads, squeezed down into a 48 pixel high banner. For some apps keyword-based, small format, cost-per-click ads make a lot of sense. But developers have real choices. There are anumber of different ad formats with proven track records of delivering great revenue. Greystripe pioneered the interstitial format as a way of moving past small, low value, cost-per-click ads for performance advertisers and delivering results for high value brand advertisers. Other networks, have caught on to the value of engaging the user’s full attention. If you have not tried interstitials, and you think they would work in your app, we recommend you give them a try.

Don’t: Just Put a Banner on Every Screen
I’m still amazed at the number of great games and apps with poor ad experiences. After months of developing your UI, slapping a persistent banner on every screen at the last minute can is not the optimal strategy. When designing your app, think about ads from the start. There’s no reason to cover up great game play or valuable app real estate with a tiny banner! And if your first attempt doesn’t make users happy, or earn the revenue you expect, don’t give up. Just like designing anything: iterate, experiment and work to make it better with each new version.

Do: Have a Clear Privacy Policy
With increased scrutiny on privacy issues around digital advertising, developers have a responsibility to to formulate a clear privacy policy. Let users know what info you’re sharing with third parties, like ad networks, social gaming providers and others. There are great resources on-line to help even the casual developer put together a clear policy for their users.

Don’t: Be Afraid of Ad Targeting
Local advertising, advanced behavioral targeting and social media based recommendations will all continue to grow in 2011, providing opportunities for developers to increase ad revenue. Targeted advertising is a good thing for everyone involved. Users see ads that are relevant and interesting. Advertisers are willing to pay more to reach a receptive audience. And with developers in the middle, it’s a win/win: better user experience and higher value ads.

Do: Be Thoughtful about Mediation Layers
If you’re looking to make extra money with an ad supported app, find a great network that fits you. If you’ve built a big audience, consider using a mediation layer. Mediation layers allow you to work with and manage traffic from multiple ad networks. But adding a mediation layer can be a lot of extra work, and means you have to work with even more technologies and people. Mediators are often behind the curve on new versions and ad formats as well (since they have to support the lowest common denominator, and constantly update their network integrations). So if you’re small or medium sized app, or want the latest and greatest, go direct to one or two networks.

Don’t: Expect Every Day to be Christmas
December was an amazing month for Greystripe, and mobile advertising overall, with unprecedented numbers of ads from high profile brands. And January (as you may have noticed) is typically a down month for advertising. To do proper planning, it is important to understand the tides of advertising dollars that fuel your ad revenue. There are peak advertising periods like the Spring, Back-to-School and the Holidays and there are slower advertising periods, like January. When evaluating any ad network, it is important to compare them over a long period, like a quarter or half year, to even out those fluctuations. For developers looking to grow their audience, these slow periods are a great time to advertise your app. The new year offers lots of new users looking for apps, and less competition for ad space.

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