Category: Monetization

When it comes to choosing a solution to monetize your app with advertising, chances are you’ll consider turnkey monetization solutions offering pre-defined ad format templates. These solutions are generally offered through a Software Development Kit (SDK) to be integrated into your app. Although choosing an SDK seems like the easiest and most convenient solution, it also comes with a certain number of important drawbacks.

API vs SDKAPI vs SDK

Here are 5 reasons why going through an Application Programming Interface (API) is better than integrating an SDK when it comes to monetizing your app’s traffic with advertising, and especially with native advertising.

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Effective Cost Per Mille (eCPM) is currently the most widespread metric used within the mobile advertising ecosystem for publishers to measure the performance of their ads.
For mobile native advertising however, eCPM doesn’t give you the whole picture as a publisher, for 3 major reasons:

  1. eCPM heavily depends on the interpretation of what constitutes a native impression.
  2. eCPM can be easily tweaked through the fill rate (as networks are able to serve only high value impressions).
  3. eCPM makes you lose focus on what matters as a publisher, which is maximizing revenue through a nice user experience (In the end what matters is not the impression, but how good the ad integration drives revenues from your user base while preserving their experience of the app).

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Today, although the vast majority out of the overall app revenue comes from in-app purchases, monetizing via virtual items remains extremely hard. On average, only a tiny fraction of the user base manages to convert, which means that publishers need to average out over their whole user base in order to make up for their user acquisition cost.

For this reason, in-app advertising, if and when done right, remains an attractive monetization strategy for all mobile publishers. more