Grigoriy MisilyukThe global industry of mobile apps is expected to grow to half a trillion dollars in revenue as of 2024. Such tremendous earnings from monetizing mobile traffic are possible despite high fees (up to 40%), technology fragmentation, scale issues, and other difficulties on the part of ad networks. This article will disclose mobile app monetization using a software development kit (SDK). We will share options within this solution for publishers and provide industry statistics to support our story.
As often happens, the best option is a blend of diverse approaches. Luck is on the side of those fearless about taking the next big step forward in business development, moving out of approaches they have overgrown.
Mobile advertising expansion: the value of in-app traffic is growing
In this section, we would like to highlight the global size of the mobile advertising market. The data below is provided according to Statista Market Insights, otherwise, the source is directly referenced.
In-app advertising spending worldwide as of the second quarter of 2024
Global in-app advertising spending reached $314.56 billion in 2023, with 40% of that coming from Social Networking and another 29% from Games. Meanwhile, eMarketer estimates that the in-app advertising market in the US alone will reach $200 billion by the end of 2024.
Is it a significant market share? Yes, mobile in-app traffic is a large and growing advertising industry, and this growth is expected to continue.
In-app average ad spending per mobile internet user worldwide as of the second quarter of 2024
The average ad spend per mobile internet user in the in-app advertising market is estimated to be almost $54 in 2024, up $6.5 from 2023.
With Social Networking accounting for 36% and Games for 26%, we can conclude that most advertising integrations occur in these categories. While Social Networking is a sophisticated segment already monopolized, Games remain a great way to generate additional revenue, especially when launching many small apps designed by the same principle in a narrow field.
The primary challenge in the monetization of apps
With the advertising landscape rapidly changing towards anonymization and a cookie-free environment, SDK solutions for ad mediation are growing as a mainstream option that allows mobile publishers to accurately target their audiences and increase ad revenue without compromising user privacy.
Mobile ad mediation requires publishers to use the SDK of the particular ad network
Frequently, publishers have to use more than one SDK developed by a specific ad network to mediate advertising for app portfolio monetization. This is generally the most significant issue.
App developers are expected to implement objects in the application code each time the SDK is updated, which increases its size and can affect computing performance.
To receive rich offers from diverse bidders, casual app developers can only afford to use up to three SDKs for technical reasons: too frequent application updates, additional bug testing cycles after them, technology conflicts, difficulties in traffic shaping, and others.
The most affordable solution remains the integration of a single SDK by AppLovin, AdMob, or IronSource because spending time testing advanced approaches requires a publisher’s understanding of advertising technologies.
Limited offers from a particular ad network bring less revenue than enriched demand from several ad networks simultaneously. It’s about more precise targeting and higher audience reach, leading to a better user experience.
Addressing the challenge of the most effective app monetization
The subject of the task:
Launch multiple ad networks to monetize your apps with ads effectively
Manage ad network integrations to supply applications with additional value for users
Optimize revenue balancing advertisement performance
Integrate additional demand sources into your app portfolio
Prepare a technical background for future enhancements
You can develop a programmatic solution by working solely with your team or partnering with a third-party ad tech company. However, this is a complicated process for small publishers not interested in reinventing the wheel by designing server-based applications for ad rendering and traffic shaping.
Ready-made solutions are available on the market, and you can choose the most appropriate for your app portfolio. The TeqBlaze team also has something to offer. Let us be cushy and direct.
White-label mobile SDK for mobile app monetization
You can utilize a white-label mobile SDK to monetize your apps by connecting them with top-tier ad networks such as Unity, AppLovin, AdMob, ironSource, and other demanders upon request. It is an all-in-one solution, enabling the benefits of rich advertisement partnerships with precise traffic management to achieve stable income with a balanced advertising presence. It doesn’t require additional developments, providing fast as wind time to market.
You can use this ad mediation solution as part of your own programmatic ecosystem by connecting with a white-label SSP + Ad Exchange platform.
The white-label mobile SDK allows rich ad formats to be run across your app portfolio. Banner HTML, out-stream video, interstitial ads, in-app native, and Google IMA SDK in-stream video are enough opportunities to engage your audience while displaying highly relevant ads. The solution is engineered to strictly maintain full privacy compliance with key regulatory frameworks: COPPA, GDPR, TCF, and GPP (CCPA). However, it is a lone part of the scope of the benefits.
We also want to disclose some extra features regarding the fully customizable SDK solution. All of them are out of the box.
Ample event tracking to see how your trades go in real-time with a complete understanding of ad performance by varied tracked user interactions (as impressions, clicks) and campaign metrics (as CPM, CPC).
Visual performance dashboards to obtain even more data insights for precise traffic shaping and growing yields.
First-party data collection upon user consent allows you to grow your database for retargeting and programmatic expansion.
Open Measurement (OM) SDK legal certification support will put your apps with diverse ad features in the orbit of industry standards set by the IAB.
A white-label mobile SDK can be boiled down to a ready-made, fully functional solution for mobile traffic monetization with a wide range of additional management features for publishers. It allows ad mediation with top market players plus custom demand and renders ads, seamlessly integrating them into mobile apps.
Key conclusions to go
Publishers should focus on application development and not be concerned about anything else. Monetization issues belong to qualified people interested in ensuring your business continues to grow and make a profit. The TeqBlaze team emphasizes that mobile app monetization with the simultaneous use of several ad networks improves business performance and user retention, being the next step in the evolution of the relationship between publishers and the audience.
If you are interested in the described technologies or would like to discuss the monetization potential of your mobile applications, please get in touch with us. We don’t sell solutions but invite the building of partnerships.
