Tag Archives: Ad

The Top In-App Purchase Tactics for 2022

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According to Sensor Tower, consumers spent $111 billion on in-app purchases, subscriptions, and premium apps in 2020 on the Apple App Store and Google Play Store. How can your app take advantage to maximize revenue? Every app is different and begets a unique answer to the all important question: What’s the best way to monetize?

App Figures recently published a study which showed only 5.9% of Apple App Store apps are paid, compared to a paltry 3.7% on Google Play. Thus, the freemium model reigns supreme—according to app sales statistics, 48.2% of all mobile app revenue derives from in-app purchases.

When creating an in-app purchase ecosystem, many psychological and practical considerations must be evaluated. Below, please find the best practices for setting in-app purchase prices in 2022.

BEHAVIORAL ECONOMICS

Behavioral economics is a method of economic analysis that applies psychological insights into human behavior to explain economic decision-making. Creating an in-app purchase ecosystem begins with understanding and introducing the psychological factors which incentivize users to make purchases. For example, the $0.99 pricing model banks on users perceiving items that cost $1.99 to be closer to a $1 price point than $2. Reducing whole dollar prices by one cent is a psychological tactic proven to be effective for both in-app purchases and beyond.

Another psychological pricing tactic is to remove the dollar sign or local currency symbol from the IAP storefront and employ a purchasable in-app currency required to purchase IAPs. By removing the association with real money, users see the value of each option on a lower stakes scale. Furthermore, in-app currencies can play a major role in your retention strategy.

ANCHORING

Anchoring is a cognitive bias where users privilege an initial piece of information when making purchasing decisions. Generally, this applies to prices—app developers create a first price point as an anchoring reference, then slash it to provide users with value. For example, an in-app purchase might be advertised at $4.99, then slashed to $1.99 (60% off) for a daily deal. When users see the value in relation to the initial price point, they become more incentivized to buy.

Anchoring also relates to the presentation of pricing. We have all seen bundles and subscriptions present their value in relation to higher pricing tiers. For example, an annual subscription that’s $20/year, but advertised as a $36 value in relation to a monthly subscription price of $2.99/month. In order for your users to understand the value of a purchase, you have to hammer the point home through UI design.

OPTIMIZE YOUR UI

UI is very important when it comes to presenting your in-app purchases. A well-designed monetization strategy can be made moot by insufficient UI design. Users should always be 1-2 taps away from the IAP storefront where they can make purchases. The prices and discounts of each pricing option should be clearly delineated on the storefront.

Furthermore, make sure you are putting your best foot forward with how you present your prices. Anchoring increases the appeal of in-app purchases, but in order for the user to understand the deal, you have to highlight the value in your UI design by advertising it front and center in your IAP UI.

OFFER A VARIETY OF CHOICES

There are a number of IAPs trending across apps. In order to target the widest variety of potential buyers, we recommend offering a variety of options. Here are a few commonly employed options:

  • BUNDLES: Offer your IAPs either à la carte or as a bundle for a discount. Users are always more inclined to make a bigger purchase when they understand they are receiving an increased value.
  • AD FREE: Offer an ad-free experience to your users. This is one of the more common tactics and die-hard users will often be willing to pay to get rid of the ad experience.
  • SPECIAL OFFERS: Limited-time offers with major discounts are far more likely to attract user attention. Special offers create a feeling of scarcity as well as instill the feeling of urgency. Consider employing holiday specials and sending personalized push notifications to promote them.
  • MYSTERY BOX: Many apps offer mystery boxes—bundles often offered for cheap that contain a random assortment of IAPs. Users may elect to take a chance and purchase in hopes of receiving a major reward.

While offering users a variety of choices for IAPs is key, having too many choices can cause analysis paralysis and be stultifying to users. Analysis paralysis is when users are hesitant to make an in-app purchase because they’ve been given too many options. Restrict your IAPs to the most appealing options to make decisions easy for your users.

TESTING IS KEY

As with any component of app development, testing is the key to understanding your audience and refining your techniques. We recommend testing your app with a random user group and taking their feedback as well as having them fill out a questionnaire. A/B Testing, or split-run testing, consists of testing two different user groups with two different app experiences. A/B testing enables app developers to see how users react to different experiences and to evaluate what tactics are most user-effective.

There are many tactics to help incentivize users to make that big step and invest capital in an app. Savvy developers innovate every day—stay tuned on the latest trends to keep your in-app purchase strategy on the cutting edge.

Five Mobile Ad Platforms You Need to Know in 2021

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For most mobile app developers, the majority of revenue comes from advertising. We have written in the past about the prevalence of the Freemium model and what tactics maximize both the retention and profits of mobile games. Another major decision every app developer faces is what mobile advertising platform to choose.

Mobile advertising represents 72% of all U.S. digital ad spending. Publishers have a variety of ad platforms to choose from, each with individual pros and cons. Here are the top mobile advertising platforms to consider for 2021:

Google AdMob

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Acquired by Google in 2010, Google AdMob is the most popular mobile advertising network. AdMob integrates high-performing ad formats, native ads, banner ads, video, and interstitial ads into mobile apps.

AdMob shows over 40 billion mobile ads per month and is the biggest player in the mobile ad space. Some users criticize the platform for featuring revenues on the lower side of the chart; however, the platform also offers robust analytics to help publishers glean insights into ad performance.

Facebook Ads

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Facebook’s Audience Network leverages the social media platform’s massive userbase toward offering publishers an ad network designed for user engagement and growth. Like AdMob, Facebook Ads offers a variety of ad types, including native, interstitial, banner, in-stream video, and rewarded video ads.

With over 1 billion users, Facebook has utilized their massive resources to build out their ad network. Facebook Ads provide state-of-the-art tools, support, and valuable insights to grow ad revenue. Facebook Ads sets itself apart by offering a highly focused level of targeting. Facebook collects a vast amount of data from its users, thus Facebook Ads enables app publishers to target based on a variety of factors (interests, behaviors, demographics and more) with a level of granularity deeper than any other platform.

InMobi

InMobi Logo

InMobi offers a different way of targeting users, which they have coined “Appographic targeting”. “Appographic targeting” analyzes the user’s existing and previous applications rather than traditional demographics. If a user is known to book flights via an app, then related ads, such as that of hotels and tourism will be shown.

The InMobi Mediation platform enables publishers to maximize their ad earnings with unified auction solutions and header bidding for mobile apps.

TapJoy

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TapJoy has received increased consideration from mobile game developers since the platform integrates with in-app purchases. Studies show that mobile players will engage with advertisements if offered a reward. TapJoy has capitalized on this by introducing incentivized downloading, which provides mobile gamers with virtual currency through completing real world actions. For example, a user can earn virtual currency in the game they are playing by downloading a related game in the app store.

TapJoy provides premium content to over 20,000 games and works with major companies like Amazon, Adidas, Epic Games, and Gillette.

Unity Ads

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Unity, the popular mobile app development platform, launched Unity Ads in 2014. Since then, it’s become one of the premier mobile ad networks for mobile games. Unity Ads supports iOS and Android mobile platforms and offers a variety of ad formats. One of the major features is the ability to advertise In-App Purchases displayed in videos (both rewarded and unrewarded) to players.

On a targeting level, Unity Ads allows publishers to focus on players that are most likely to be interested in playing specific games based on their downloads and gameplay habits. Many of the leading mobile game companies use Unity to build their app and Unity Ads as their ad platform.

CONCLUSION

These are not the only mobile ad networks, but for app publishers looking to stay current, they are the premier platforms to research. Other platforms like media.net, Chartboost, Snapchat Ads, Twitter Ads, and AppLovin also merit consideration.

When it comes to advertising, every app and app publisher has different needs. Since advertising plays a massive role in generating revenue, mobile app developers set themselves up for success when they do the research, and can find what ad platforms are best suited to their product.

5 Essential Mobile Game Monetization Strategies to Keep Your Pockets Full

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A recent study by Venture Beat showed that less than 1% of mobile game players contribute 48% of total revenue to game publishers. Inability to effectively capitalize upon this hyper-concentrated group of revenue drivers leaves many mobile game developers in the red. The rise of the Freemium model has essentially killed the paid gaming app, leaving many developers scratching their heads on how to turn a profit out of their passion. Here are some of the best methods for mobile game monetization:

1. SEGMENTATION Without a price to download, app publishers can no longer rely on a single method of monetization. Thus segmentation, the division of profit streams, is key to any mobile game monetization plan. App monetization revenues stem from three major categories: in-app purchases, subscription-based premium upgrades, and ad revenue. Highly-successful games can also bring in money through sponsorships, merchandise, and even big-budget Hollywood movies, but the bulk of app developers generate revenue from inside the phone. Experienced mobile game developers use their understanding of each of these revenue streams and how they relate to their target audience to leverage multiple revenue streams within their games.

2. REWARDED AD FORMAT Ads and in-app purchases are both great assets to mobile game developers looking to monetize, but what if you could play them off each other to increase both sources of revenue? That’s the idea behind the rewarded ad format. In exchange for watching full ads during breaks in gameplay, users receive in-game rewards, power-ups, lives, etc. The incentive increases video completion rate, as well as ad revenue, and preview premium features to entice more in-app purchases. While the rewarded ad format can lead to a surge in both in-app purchases and ad revenue, it still requires strategy. Keeping the audience in mind by ensuring the user base will find the content of the ad interesting will increase completion rate. Strategic rewarded ad placement is also key to keeping users engaged. Rewarded ad overkill will alienate users and prevent them from playing the game.

3. FREEMIUM The popular Freemium monetization method entails developers offering a free download of the most basic form of the app to entice the user, then premium services and features available for purchase or through a subscription fee. The Freemium model drives revenue through in-app purchases, premium features available through subscription fees, and ads. Apps like Tinder and Candy Crush have capitalized on their massive user base by enticing users to make in-app purchases and update to premium accounts. Candy Crush also uses social media to allow users to receive premium features in exchange for sharing with their friends.

4. NATIVE ADS Native ads are advertisements designed to match the form and function of their surroundings. Twitter, Facebook, Google, and Instagram all offer native ads and tools to help developers create and customize their ads. Native ad placement increases the chance of engagement by seamlessly blending the design of the ad in with the UI of the app. While many ads stand out in the context of a mobile app, native ads look like they are a part of the app rather than an advertisement. Some say native ads are unethical and deceptive, while others praise the improved customer targeting and enhanced content. Effective native ads blend seamlessly with the surrounding UI. The number one rule of native ads is to know your audience. If the developer can incorporate relevant content rather than ads for products that do not interest the user, native ads can appear to become more of an enhancement than an interruption.

5. FEEDER APPS Feeder apps are simple games with addicting gameplay which app developers utilize to spread brand awareness. Feeder apps often feature such simple gameplay, in-app purchases and ads would feel intrusive. Instead, push notifications and links in the main menu redirect users to their company website or another one of their games in iTunes. Many mobile development companies develop a network of feeder apps as a part of their publication and monetization strategy. By utilizing a well-integrated native ad for the company or game the developer intends to monetize, developers can turn viral feeder apps into profits. This comprehensive article by Scientific Revenue offers a great example of how feeder apps can function effectively. ZeptoLab cross-promotes their featured app King of Thieves through their feeder app Cut the Rope.

CONCLUSION Succeeding in the world of mobile gaming requires the same intense flare for competition which fuels mobile gamers. Experienced game developers know the stakes and come out swinging, ready to capitalize on every strategy they can to create a revenue stream. With the right combination of smarts, app development, promotion and strategy, mobile game developers can capitalize on their user base to rake in the big bucks.

Game Design Techniques: Significantly Increase Ad Revenue with a Sharp Core Loop

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Due to the budgetary, software and hardware limitations of mobile games, developers must hook audiences with a well-built game incorporating layers of psychological strategy. The core of any mobile game is the Core Loop. The Core Loop is the main facet of gameplay. It’s the beating heart upon which all progress is precipitated. In sports games, it’s the matches. In Angry Birds, it’s launching the birds to destroy the pigs. In Candy Crush, it’s the levels. The Core Loop is the obstacle that users willingly take on with the intention of overcoming in exchange for a feeling of accomplishment. While retention techniques can reinforce that feeling and can add to the experience, no game can survive a poor Core Loop. In some cases, a great Core Loop doesn’t need any sort of extravagant retention technique. Flappy Bird, which took 3 hours to make, can accrue $50,000 a day in ad revenue purely off the Core Loop.

THE BASICS

A good Core Loop for a mobile game generally entails a simple, enjoyable, repetitive action which triggers a reward when executed properly. This reward is something in-game which triggers a dopamine rush for the user. The rewards can be anything from gaining points, getting lives, advancing levels, power-ups, unlocking characters and items, and so forth. These rewards are tiered and the dopamine rush should vary depending on the level of accomplishment. For instance, the main action of Fruit Ninja is slicing fruit. Slicing one fruit triggers a dopamine rush, but clearing a level of fruit triggers a larger dopamine rush, and getting on the high score list triggers yet a larger one, etc. Retention tactics can dictate how these rushes are tiered, but the action which produces the rush is the most important thing: the Core Loop.

LOOPING

Rule number one of the Core Loop for mobile games is to actually loop. After one loop completes, another loop begins. The user completes a level and begins at the next level with their score intact, or they fail to complete the level and begin at the start of the same level with their score reset. Even rewards apps for retail stores rely on Core Loop to hook users. Console games are monetized through retail, so they can craft larger budget, more intimate single-player experiences, but mobile games are generally monetized through the Freemium model, which means ad-revenues will make up the bulk of their profits. Ads come at the end of the Core Loop, so the more loops per user, the better. Thus, mobile developers generally invest in simple but rewarding, well-crafted, repetitive gameplay systems.

PROGRESSION AND REPETITION

Pac Man Level 1 Vs. Level 2 via GitHub

While a Core Loop must loop, it also must instill a sense of progression. If the user doesn’t feel like they’re making progress, they will likely quit. Users want the satisfaction of accomplishment, and both satisfaction and accomplishment require a sense of finality. Arcade games are popular on mobile devices because they thrive on repetition. Level 2 of Pac-Man is not much different from Level 1, but it is different, and that minor difference instills a sense of progression; the sense that a new challenge must be conquered with skills accrued in past gameplay experience. Memories unconsciously become technique. In games like the aforementioned Flappy Bird, the goal is simply to get a high score. There are no levels, but a sense of progression is still built purely through how one’s high score builds. If the high score weren’t displayed, Flappy Bird would still have a Core Loop, but nobody would play it since one couldn’t measure one’s progress. It wouldn’t feel like a game. The beauty of high scores is they represent a single player game with a social release, which is also great for social media promotion.

SESSION LENGTH

Session length is a vital aspect of the Core Loop. The Starbucks Test entails that the user should be able to have a meaningful experience with the game in the time it takes the barista to make them coffee. A concise session length will get users coming back often in the empty pockets of their day.

DUAL LOOP

The Dual Loop is an advanced game development technique that can deeply enhance gameplay. At the end of the first loop, the Dual Loop technique offers the user the option to stop their session and enter into a mini-loop which enhances the next loop, which is a continuation of the first. When you play Clash of Clans, you can battle, which is the main loop, but you can also collect resources or build and train your army in between battles. The dual allows the user to add quick 30-second interactions which pass the Starbucks Test and increase their investment in the competition.

One of the best ways to enhance your ability to develop a Core Loop is to play and analyze other games. A well-designed Core Loop can lead to mobile gaming success on minimal budgets, and massive success on larger budgets.