Charge your game monetization with a winning combination of in-app purchases and ads

Predictions estimate that by 2017, 94.5% of app downloads will be free [1]. As a developer, you are probably juggling creating great content for your game and finding ways to monetize it. It�s important to develop a robust monetization model that takes into consideration the spending preferences of all users. That�s why today we are unveiling a new white paper with insights and ideas on building effective monetization models: A Winning Combination - How using in-app purchases and ads together can maximize mobile game revenue.

Today, in-app ads and freemium (free download with IAPs*) fuel the growth of mobile app revenue, growing at 71% and 72% respectively from 2013 to 2014 [2]. Through an analysis of over 10,000 top Android apps, we found that for games, using IAP and ads together can potentially generate 117% more revenue than just IAPs alone.

However, a hybrid approach is more than simply bundling ads and IAPs together; it�s about targeting the right users at the right time with the right monetization opportunity. The goal of our white paper is to help you accomplish that easily and effectively.

In this white paper, you will learn the following:

• What an effective hybrid monetization model looks like and the benefits it can deliver;
• The principles and frameworks for building an effective hybrid monetization strategy;
• Best practices from developers around the world.

You can download the white paper here. Find out what AdMob�s IAP solution can do to help you build a strong hybrid monetization model.

We�d love to hear what you think of the white paper. Please share with us on Twitter and Google+ what other tips you have in building a strong hybrid monetization strategy.

Sean Meng
AdMob Product Marketing

* In-app purchases

[1] - Gartner: http://www.gartner.com/newsroom/id/2648515

[2] - IDC/App Annie: Mobile App Advertising and Monetization Trends 2013-2018

New AdMob features to help you monetize your app the smart way

Today, at the Game Developers Conference (GDC), we�re announcing three important updates to AdMob that will help developers build a smart monetization experience, and to help marketers reach the right users. We believe the best kind of in-app monetization experiences are the ones customized to individual app users, not a one-size-fits-all approach. Our vision for AdMob is to build a smart platform that makes such a tailored approach possible, or as we like to say, one that�s �audience aware�.

• AdMob In-App Purchase House Ads are a free, new format that can completely change how you think about your in-app purchase monetization strategy. You can use this format to create a customized ad to promote items to sell to your users, then AdMob�s audience-aware platform will predict those users who are likely to buy, and show them the ad. For all your other users - the ones unlikely to spend - AdMob can show them a regular ad. This approach means you can keep your high-value users engaged in your app, and for everyone else you�re making each impression count towards monetization. Currently in beta, this feature will be coming to all AdMob accounts in the next few weeks.

• Audience Builder is a powerful tool in AdMob that enables you to create lists of audiences based on how people use your app and then create customized experiences for users, ultimately growing your app revenue. For example, you could create an Audience List that defines those users who have not used your app in 14 days. Import that list into Google AdWords, and you can show ads to this list to re-engage users while they�re in other apps, or across the web. Audience Builder is available in all AdMob accounts now, and you can find out how to get started here.

• AdMob Native Ads are now in limited beta on the AdMob platform. Participating developers will be able to show native ads in their app from Google advertisers, and customize them to match both the form and function of their app. We pay close attention to user experience, so our native ads are designed to be clearly identifiable as ads to users. We�re thrilled to be working closely with Atari to bring native ads to RollerCoaster Tycoon� 4 Mobile; check out the screenshot below with an app install ad for Zagat:

• The user-friendly focus of native ads was an important consideration for Atari�s Chief Operating Officer, Todd Shallbetter: �Atari creates great game experiences for our broad audience. We're happy to be partnering with Google and be the first games company to take part in the native ads beta and help monetize games in a way that enhances our users' experience.'

• We�re testing native ads on non-gaming apps, too, partnering with developers globally, including CocoPPa in Japan.
  

These new features in AdMob can provide you with many new ways to supercharge your monetization. You can find out more about them on the AdMob website.

If you�re going to be at GDC, don�t miss my talk on Thursday, �Smart Strategies to Acquire, Retain and Monetize Gamers,� where I�ll be discussing these new features. And if you can�t attend, check out our live sharing on Google+ and Twitter to stay in the loop with what�s happening with #MeetAdMob.

Posted by Jonathan Alferness
Director of Product Management and Global Lead 

for Mobile Display Ads and AdMob