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THE CONS OF IN-APP ADVERTISING THAT YOU CANNOT IGNORE

People today enjoy the convenience and liberty of in-app advertising via multiple Top Ad Networks and Ad Mediation platforms available making the process a lot easier. For mobile app monetization, in-app advertising is undoubtedly the most commonly used strategy. To back this, Statista keeping in view the growing trends has forecasted the global mobile app revenue to hit more than 935 billion US dollars via paid downloads and in-app advertising.

With the growing need for mobile app monetization solutions, in-app advertising itself has evolved over the years. This evolution significantly includes new ad formats, feature-packed ad mediation platforms and unbiased mediation techniques.

In case you are new to the concept of In-App Advertising, here is what it is…



WHAT IS IN-APP ADVERTISING?

In-app advertising is a creative and engaging strategy used to monetize mobile apps. This strategy of monetization is executed by serving ads within an app that eventually generates impressions to boost in-app revenue.

A publisher is paid per thousand impressions that his or her app generates. This value is known as eCPM, whereas, the formula is: (total earnings/total impressions) x 1000

There are multiple pros of executing in-app advertising for generating in-app revenue such as greater retention, personalized placement and build, and higher revenue based on the user base. But once the tables are turned, the cons of in-app advertising just cannot be ignored. The list of disadvantages of in-app advertising might not be as diverse as the advantages, but this side cannot just be ignored.


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The Cons of In-App Advertising for Mobile App Monetization

The disadvantages of in-app advertising majorly revolve around user experience and audience perception. To break it down further, these are the cons of in-app advertising that cannot be ignored:

Negative Impact on User Experience

In-app ads can be equally annoying as TVCs. Just as a television viewer finds TVCs intrusive and unnecessary, the game or app users similarly often find in-app ads intrusive and annoying. The ads serving within an app can at times be so frustrating for a user that he or she might end up uninstalling it. This frustration can be because of repeated display of ads within a short interval of time.

Irrelevant Ads and User Perception

Ads displayed in mobile apps must align with the user interest. This is highly important, as otherwise no matter what is being served in an ad will be of no good. The ad being irrelevant is not just a turn off for the user but it negatively impacts the overall user experience due to repeated content blocking.

Where on one end there are irrelevant ads that do not align with the user preferences, there are good ads as well. In this case, however, the user perception might change the app for a publisher. At times even good ads when shown at bad timing create a negative perception for users to look forward to. Therefore, a user in both cases might find in-app advertising annoying.

Too many offers to choose from

More options mean harder choices to make. A similar theory works when mobile games and apps launch multiple offers or display them within ads. Offer wall ads are a common concept these days especially for apps or games promoting in-app purchases.

When a user is exposed to multiple offers repeatedly, he or she not just gets confused but also finds the concept misleading. But why is it misleading? A user might consider that the app publisher is only focused on making money and not providing a good user experience.

Low Performing Ad Formats

Not all ad formats and placements can work for your mobile app. One must play smart when planning to monetize an app by in-app advertising.

Banner Ads and Video or Rewarded Video Ads in comparison to others provide much more impressions and engagement. Other formats meanwhile are comparatively slower in the race of collecting a handsome amount of impressions for generating in-app revenue. Therefore, a publisher must choose the formats that are rewarding and place them smartly.

Device Limitations

Despite ad formats being set up according to various devices by the advertisers while setting up campaigns, the ads can still at times fall victim to device limitations. People at times use certain screen modes and ratios that might not favourably support the advertisement being rightly served within the application. Similarly, an advertisement with an active CTA might not efficiently route the user to a link or app, this can also be frustrating for a user.          

Accidental Clicks and Trust Issues

One of the biggest concerns pertaining to in-app advertising is trust issues and accidental clicks. A considerable chunk of the audience finds ads as misleading and bogus leading to malware installation. Thus, they find clicking the ad as a threat to their device.

On the same end, in-app advertising often leads to accidental clicks that lead to unwanted installation. Such installations also bother multiple users especially when they find such unwanted apps as a threat to their device and privacy.

Mobile Ad Blockers

To all those considering in-app advertising for monetization, your revenue is at stake with multiple ad blocker apps now easily available. One ad blocker installation from the user’s end can break your chain of impression generation blocking all the revenue.

Where the world celebrates the perks and growth of the mobile advertising industry, these disadvantages are a hindrance in the process of monetization. The disadvantages of in-app advertising still do not have enough weightage as compared to the positives, but one needs to consider them before making the right choice.