The whole is greater than the sum of its parts: Advantages of a full-stack monetization solution

Tuesday, April 30, 2019
By: Calvin Yeung

In-app advertising (IAA) is an important source of revenue for mobile app publishers today and expected to keep growing in the near future. According to AppAnnie, IAA is forecasted to bring in 62% of all app revenue by 2020. However, managing IAA is not an easy task given the proliferation of demand sources, intense competition for user attention, and the amount of effort needed to optimize advertising. As a result, mobile app publishers hoping to achieve success with advertising need to balance three things at the same time: revenue maximization, user experience, and operational efficiency. Choosing a full-stack monetization solution that allows publishers to access and manage all supply sources within a single platform is an easy way for an app publisher to achieve this balance.  

Revenue maximization

The vast majority of in-app demand comes from three sources: direct deals, ad networks, and real-time bidding platforms such as DSPs. Mobile app publishers that want to maximize revenue may find it advantageous to access and manage all demand sources in one place. Omitting any one source could mean missing out on the distinct demand that source represents, and limiting demand sources also diminishes the density of competition for impressions, which has the potential to deflate prices of these impressions in the form of lower eCPMs.

mopub unified auction

In addition, some mobile publishers use different platforms to manage each demand source separately which may add a layer of complexity. For example, data may be presented differently across different platforms, potentially adding additional steps  to assess and compare demand source performance. Not to mention, when integrating components à la carte, publishers could end up spending more time researching and vetting the various vendors and managing partner relationships.

User experience

Maximizing revenue should not come at the expense of user experience. Successful mobile publishers using in-app advertising and monetization platforms still consider the needs of their users, aim to minimize their ad fatigue, and increase ad engagement. As a result, they leverage data to understand their users, their journey, and their preferences. They prioritize identifying the appropriate ad placements and creative formats as well as optimizing for faster app downloads and a lowering ad latency, all in an effort to ensure a seamless user experience and increasing retention.  

Operational efficiency

When it comes to managing in-app advertising, mobile publishers have different objectives and should remain in control. Some publishers want to manage and optimize complex waterfall setups using their own ad ops teams, so they look for monetization platforms that offer control, flexibility, and transparency. Other publishers don’t invest in ad ops team and prioritize simplicity and automation to run their advertising initiatives. (It’s also worth noting that we believe that once in-app bidding (header bidding for mobile) becomes the de facto mechanism for buying and selling media in the mobile space, the industry will organically move closer to simplicity and automation as there will be less of a need to manage custom waterfall setups.)    

With advertising playing such a large role in app monetization strategies, mobile publishers may lose out if they fail to access all potential demand sources, protect the user experience, and operate efficiently. Rather than juggling disparate tools, publishers should consider a complete solution. A full-stack monetization platform is greater than the sum of its parts. It not only saves publishers time and headache--it may also position them to maximize revenue by bringing all demand sources into a single auction, and to gain a holistic view of ad monetization.

At MoPub we believe in the importance of balancing all three components, and so we offer a full-stack platform that is designed to set mobile app publishers up for success by enabling them to maximize revenue across different demand sources, protect user experience, and operate with both control and efficiency. To learn more, please visit the MoPub Monetization Platform and check out some of our solutions: Advanced Bidding, MoPub Analytics, and impression-level revenue data.  

 

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