Video advertising has come close to in-app purchases (IAP) in terms of profitability, according to a report by the advertising company AdColony.
According to the study, 31% of mobile app publishers’ revenue is generated by video ads, while IAP accounts for 39% of revenue. Advertising banners are in third place — they give 20% of revenue.
Revenue sources of mobile app publishers, AdColony
In addition, 75% of survey participants called rewarded video advertising in the app the most effective method of monetization of their product. IAP was in second place, gaining 63%.
The most effective methods of monetization of mobile applications, AdColony
In general, revenue from advertising of various types can reach up to 55% of the total revenue of the publisher.
The report used data from publishers with an average monthly audience of more than 3 million users, with 82% of them developing mobile games.
All AdColony survey participants use video ads to monetize their apps. 91% of them are also monetized through in-app purchases, and 80% resort to banner advertising.
Also on the topic: