Lowdown: Best ways to monetize your messaging app

Lowdown is a regular series that brings you tips and tricks on how to best use AdMob to grow your app business, directly from members of the Google AdMob team.

It�s a fantastic time for messaging apps. Massive company valuations, global user bases, and strong demand for wifi-based communication have incentivized mobile developers to throw their hats into the messaging arena. We�ve seen the features and functionality for these apps become more sophisticated, expanding to delivering virtual goods, coupons, app-discovery, and even social networking. As functionality has expanded, so have the monetization potentials. Here are a few ways to best monetize your messaging app and tips to optimize your setup.

Banner Ads:

The nature of messaging apps make it very conducive for banner ad units. User spend large quantities of time on their menu, contacts and messaging pages, making it easier for users to interact with ads and drive higher engagement from anchored banner units. AdMob�s strong global coverage and year over year eCPM growth in this format can help monetize the market your users operate within.

Interstitials Ads:

Interstitial ads are not just for gaming apps. Messaging apps also have natural transition points within their user�s flow, perfect for eCPM-driven ad units like interstitials. For example a perfect place for an interstitial ad may be the moment once a user completes a phone or video call and the app transitions back into the main screen. See examples below.

Targeted In-App Purchases

Messaging apps could offer In-App Purchases (IAPs) in the form of more minutes, credits or virtual goods. Although the traditional conversion rates for these offers have been very low, AdMob automatically figures out which of your users are likely to spend, based on Google�s proprietary data and models. AdMob offers robust IAP functionality, making it easy for you to create IAP offer units and target high potential spenders. You can learn more about this feature here.

A diversified, metrics driven approach can help you to better monetize your messaging app. Visit our website to learn more about how AdMob can help you grow your app business. Until next time, be sure to stay connected on all things AdMob by following our Google+ page.

Posted by Jeff Salvitti

Strategic Mobile Partner Manager