What Are the Main Mistakes that Occur When Monetizing Apps?

Mobile apps are now some of the most popular (and profitable) virtual products being developed, and there is a continuous stream of new apps going online. More and more app publishers want a piece of this pie, and app monetization is seen as one of the most effective ways to grow revenue.


Below are three common questions that most app developers encounter at the start of their monetization journey, and we here at Pangle will provide some tips to help you unlock the potential goldmine in your app.

Q1: What are the main failures/mistakes that occur when monetizing apps?
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  1. Focusing on only one revenue stream. In-App Purchases may be the first idea that we think of when considering app monetization, but there are more options. For example, ads. It's one of the most effective and rapid ways to implement monetization, and it's easy. Configure your app to have ads, and continue to optimize based on historical data and user feedback.


  1. Expecting extremely high conversion rates of ads. Assuming you have a great app doesn't mean it will actually generate high revenue, especially at the beginning. Analyze the monetization results and continually optimize your monetization strategies.


  1. Implementing ads inappropriately. Many developers implement ads where they think will generate as much impressions as possible, without even considering users' journey. However, impressions are not equal to revenues. Don't insert ads in between users' actions abruptly as your users might just close the app to avoid ads. In fact, ads can be helpful in many cases. For example, inserting a feed ad in a browsing interface will more likely to generate conversions, given that your users are in exploration mindset and are open to fresh information.



Q2: Then, when should I begin planning to implement monetization in my app?
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You should plan a monetization strategy when creating your app. Many publishers successfully monetize their apps as they have monetization concepts in mind from the very beginning. For example, Japanese developer Global Gear which has launched over 100 mobile games in 7 years, with many of them topping the charts says “Our games are designed with ads in mind, so there are many good opportunities to place ads while maintaining a good user experience".


If you start implementing monetization after a certain number of users have already begun playing, implementation may become difficult. e.g. You may need to totally redesign your app, which may lose you established users.


Q3: Which ad format should I choose for a mobile app monetization? Rewarded, interstitials, or native?
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It all depends on your app. Some ad formats are more suitable for game apps, while other formats may suit video apps, social networking apps, or productivity apps. Learn the strengths of the different ad formats and so you can choose the right option for your goals.


Features of each ad format:

  • Rewarded video ads: Opt-in video ads that give users the choice to watch a video in exchange for an in-app incentive such as extra game lives, virtual currency, or an extended free trial.

    ○ e.g. German mobile game studio Kolibri incorporated Pangle's rewarded video ads into Idle Miner and saw great returns. The user can choose to watch an ad to double the cash they just earned in the game. With this huge reward, many users welcomed the opportunity to watch an ad.


  • Interstitial ads: Highly engaging video ads that appear at natural pause points. Users can either skip or click-through to the advertiser’s content.

    ○ e.g. GMO Media inserted Pangle's interstitial video ads in between chapters on their novel app Pre-Novel, which integrates with the user experience. As a result, Pre-Novel's total revenue increased by 110%.


  • Native ads: Natural-looking ads that mimic the design of your app to blend into the design features and integrate seamlessly with the app’s flow.

    ○ App types: for news and article apps, the text and images from the ads appear as part of the flow of the page.

    ○ Refer to our guide for more info about native ads.



To see how Pangle can help you push your app monetization further, please visit our website for more info or reach out to us at pangle_support@bytedance.com. For more helpful tips and the latest news, follow us on LinkedIn and Facebook.