Best App Monetization Platforms

Julie Jung
JJ
Researched and written by Julie Jung

App monetization platforms help mobile application developers and publishers earn money by integrating various monetization strategies into their apps, such as in-app advertising (IAA), in-app purchases (IAPs), and subscriptions. These are some common monetization strategies, especially for freemium apps, that allow developers to generate revenue while offering their app to users for free.

App monetization platforms provide app developers and publishers with the necessary tools and analytical insights for implementing and optimizing multiple monetization strategies. This helps maximize earnings while also enriching user experiences.

One of the most popular monetization strategies for apps is displaying ads (native, rewarded, banner, video, and interstitial) to users. App monetization platforms can handle the distribution of these ads to users and will compensate the developer based on performance or completed actions of users who interact with the ads.

App monetization platforms that help with ads are paralleled by mobile advertising software, which advertisers use to purchase the ad space available in apps. These platforms integrate with third-party ad networks and exchanges and offer access to its proprietary ad inventory. This ensures that ads transition smoothly through the online ad-buying process.

App monetization tools also provide programmatic buying and selling of ad inventory and automate ad management processes. These platforms often have a bidding system for advertisers, such as real-time bidding, waterfall, or in-app bidding.

To qualify for inclusion in the App Monetization Platforms category, a product must:

Offer software development kits (SDK) for developers to easily integrate monetization features within the app to generate revenue
Have a payout schedule or the tools for app owners to get compensated as a result of users completing specific actions or interacting with monetization strategies within their app
Track key metrics of monetization strategies (e.g., ad performance, total number of in-app purchases, or subscriptions), user engagement, demographic information, or overall monetization results
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Learn More About App Monetization Platforms

What are App Monetization Platforms?

App monetization platforms help mobile app developers and publishers earn money from their apps through advertising, allowing app creators to offer their products to users for free. However, it is also commonly used to supplement revenue sources such as paid downloads and freemium models. Software developers and mobile publishers use these software platforms to create and format ad units inside the app and streamline selling the ad space through mobile ad networks and exchanges. 

App monetization platforms are sold as best-of-breed products specifically for selling mobile apps or as part of a more comprehensive publisher ad management product. These solutions are paralleled by mobile advertising software advertisers use to purchase the available ad space in apps. Ad networks and exchanges serve as the bridge between the two. App monetization platforms integrate with them to ensure ads transition smoothly through the online ad buying process.

What are the Common Features of App Monetization Platforms?

The following are some core features within app monetization platforms that can help users identify if this type of software will meet their business needs:

SDK capabilities: A software development kit, more commonly known as an SDK, is a set of tools that provides a developer or app creator with the capabilities to build a custom app that can be added on, or connected to, another program, like an ad exchange. SDKs allow programmers to develop apps for a specific platform (like Apple or Google Ads). 

Third-party network integrations: In addition to the SDK, the app monetization platform needs to work on an ad exchange. This component is crucial as it’s how the app will make money. If there is no third-party network, there is no way to publish the ad, making it impossible to monetize. 

Automation of ads: Once an ad has been created and uploaded, it will have to be run to generate revenue. This should require little to no maintenance on behalf of the developer. Campaigns can be created to run under certain specifications (time frame, etc.), which provides a customizable strategy based on business or revenue goals. 

Track conversions and demographics: To understand the ads' success and revenue earned, these products should always come with analytics and tracking functionality. These will help you better understand your audience to prepare for future ad production. 

What are the Benefits of App Monetization Platforms?

These products offer many benefits for the implementer. Below are the benefits of using app monetization platforms: 

Consistent revenue generation: If an app is free to use, there can be a gap in revenue for the creator. When implementing app monetization platforms, the owner can use this as a secondary stream until the app gains enough traction to offer a subscription model or a premium version. 

Cohesive user experience: Often, the ads run on said apps will be related to the downloaded app's topic or purpose. This can provide users with a more aligned and on-brand experience even though it comes across as an advertisement. This is a common practice across multiple industries, including lifestyle, transportation, and education. 

Who Uses App Monetization Platforms?

While multiple stakeholders can use app monetization platforms, its purpose is very specific. 

Developers or app creators: The good news is that anyone can create an app. This also means that anyone can also use this software platform. The setup is often easy, and depending on the skill set of the creator, the learning curve might not be as steep as expected. 

Growth marketing managers: Creating ads that meet the requirements, publication of an ad exchange, plus formatting and creating the content for them can be a large job. This responsibility will often fall to a marketing manager or a growth marketing manager. They have the skill set to run said ads while maintaining them and tracking their analytics. 

Challenges with App Monetization Platforms

Often if an app is free or cheap, there is an association that it might be lower quality. Regardless of this, there can be some drawbacks to monetizing an app. Below are the top challenges of using these tools:

Spam: It’s a common experience among app users to use a free product, and an unwanted ad pops up without warning. These, while annoying, are a type of app monetization. If the ad isn’t carefully crafted to suit the app's interface, it can be considered spam and damage the user experience. 

Quality and quantity: Similar to the spam effect, an overuse of ads or low-quality content can be more harmful than helpful. If any ads are to be implemented, they should be thoughtfully crafted and not overwhelming to the app itself. 

Which Companies Should Buy App Monetization Platforms?

Digital marketing agencies or services: Creating an app costs time and money. Some agencies and independent services provide end-to-end development, deployment, and monetization. Depending on the type of agency and the type of app one is trying to build, it could be more cost-effective to use this type of service when creating and monetizing an app. 

App development firms or start-ups: A start-up is often tight on manpower and financing, making every penny count when making their investment profitable. Finding software solutions to speed up that process without compromising the product can be invaluable. 

How to Buy App Monetization Platforms

Requirements Gathering (RFI/RFP) for App Monetization Platforms

For app monetization products, the requirement should be that the software offers mobile application developers and publishers the ability to earn money from their apps through mobile app advertising.

Compare App Monetization Platform Products

Create a long list

Buyers must start from the beginning of the buyer journey by understanding which products won’t be a good fit. The next step is to compile the features that would be essential, such as the channels available for publishing or types of content that can be sourced, and remove any app monetization products that don’t include those features. If there’s one specific thing from a product that others don’t have but isn’t critical to the business goals, buyers can consider leaving that product behind to find one that checks all the boxes.

Create a short list

Once a primary selection of features is made of needs and wants, buyers must start identifying products that fit into this mold and ensure that these products meet all requirements essential to the key business objectives. Once the options have been narrowed down, businesses should consider reviews and objective third-party analysis.