Google tells developers how to earn more revenue via AdMob platform

While more app usage and more ad impressions would typically suggest more revenue for app developers, reduced ad spend has led to lower overall revenue in some cases on its AdMob platform.

In order to capture the revenue opportunity from the growth in user engagement , app developers must enable user metrics to help understand changes in how people are using their app, so they can take actions to optimize revenue, according to the company.

"For example, if you notice an uptick in active users, you could increase the value of rewarded ads to help drive more ad interactions," Google said in a statement late Friday.

Diversifying your ad format strategy can increase total ad placements to help drive up revenue.

"AdMob offers many engaging ad formats for you to choose from. For example, rewarded ads offer a great user experience. Native ads allow you to customize the look and feel to match the visual design of your app. And, banner and interstitial ads are very easy-to-implement," informed Ali Pasha, Group Product Manager, Google AdMob.

Among app developers in India who use advertising as a main source of revenue, about 61 per cent are using Google AdMob, while 13 per cent use Appnext and 12 per cent use InMobi, according to a latest study by Counterpoint Research.

The study also revealed that more than half the mobile app developers have tried to monetise app data. Among developers who have not tried to monetise app data in the past, almost half of them are interested in doing so in the future.

Google said that developers should consider making changes to apps to further extend user engagement.

PlayDots, maker of the popular Dots game, gave all users three hours of infinite lives daily for free for a full month in April. This allowed users to enjoy the game fully and boosted the number of levels completed, which led to more ads being watched. "Rewarded ads is another great way to earn additional revenue from increased user engagement for IAP-heavy apps (in-app purchases).  Implementing rewarded ads can unlock premium content for non-paying users and keep them more engaged," said Google.

If you are concerned about negative impact from ads on paying users, smart segmentation can help you monetize non-purchasers with a personalized experience.

This feature uses machine learning to predict and segment these two groups of users and will only show ads to predicted non-purchasers.

"Frequency caps allow you to set the number of times ads appear to the same user," said Google.

"Relaxing this setting will increase ad density to help you earn more. One thing to note is that higher ad frequency caps may affect user retention. We recommend using Firebase Remote Config to A/B test the changes before rolling them out to all users to ensure a good user experience," the tech giant explained.

Ad Network Optimisation feature offers an easy solution to help developers free up time to spend on other areas of their business.

"If you are using a different platform to mediate AdMob demand, you can set your ad units to a Google optimized eCPM floor which allows Google to dynamically set the floors based on your preference," said Google.

According to Counterpoint, working as an "outsourced app development partne" for other companies is another major source of revenue for app developers in India.

Smartphone original equipment manufacturers (OEMs) are playing an important role as a medium for app developers to capture or maintain customer base through the pre-installation of apps, said the study.