Google AdMob: Understanding Mobile App Monetization

Developing a mobile app is difficult and often costly, so you must find a way to receive a just reward for all that hard work. One of the most efficient ways to do that is with Google AdMob, an advertising network that serves ads specifically for mobile apps. And while it is a popular Google service, it isn’t only for Android but also iOS devices.

But you may think that AdMob, or in-app advertising in the general sense, isn’t a great way to monetize your app. You may have heard horror stories of appreneurs and developers spending thousands of dollars on AdMob ads and receiving few downloads. Or they may have received hundreds of thousands of downloads, but revenue results were worse than expected.

The hard truth is that Google AdMob mobile app monetization is very tricky. If you implement the wrong strategy, you’re bound to end up with a shortfall in your ad budget — which you don’t want! That’s partly why so many digital marketing and advertising agencies have mushroomed over the past decade.

If you’re skittish about implementing AdMob, you should consider hiring an agency. Alternatively, you can partner with a reputable and multi-award-winning studio, such as NS804, to help you with your ad strategy. Getting that ad strategy right is crucial, as it will drastically impact the long-term fortunes of your app.

Whether you partner with NS804, an agency, or go at it alone, it’s best to understand what mobile app monetization entails. That’s why we’ve prepared this in-depth article that covers the benefits, drawbacks, and pitfalls of AdMob. We also reveal a few strategies to help you with the platform and alleviate some of your concerns and fears.

What Do I Need To Know About Google AdMob?

Google AdMob is hardly new at this point. On April 18, 2006, a business school student, Omar Hamoui, founded the ad network in California. In November 2009, Google began the acquisition process of the ad network that concluded on May 27, 2010. On May 16, 2013, Google announced during their I/O 2023 conference that they would revamp AdMob by integrating technologies from AdSense to assist developers in boosting their app businesses.

But has AdMob truly lived up to the promise of helping app developers with their revenue streams? Yes, the massive market share of the Google Mobile Ads software development kit (SDK) speaks for itself.

Near the end of 2023, developers integrated the Google Mobile Ads SDK in most mobile games. Approximately 75% of word games for Android and 32% of all iOS mobile games had an AdMob implementation. It also attained a respectable 55% for the fan-favorite casual genre on Android. 

While this doesn’t mean that every developer enjoyed huge revenues from AdMob, it does show confidence in the platform. Furthermore, in almost every metric, AdMob outperforms its main competitors like Appodeal, Meta Audience Network, and Unity Ads. But it’s not necessarily wrong to partner with multiple ad networks, as this may prove beneficial as part of your overall ad strategy. 

How Does Google AdMob Work?

Google AdMob lets developers display targeted ads within their apps for users to interact with. While the platform initially supported Adobe Flash Lite, Palm WebOS, and Windows Phone, those legacy platforms are no longer supported. Android and iOS still enjoy plenty of support and will likely remain at the forefront of mobile app monetization for the foreseeable future.

To enjoy the benefits of AdMob, developers start by integrating the Google Mobile Ads SDK into their mobile apps after following several guidelines. The platform is free to use, but Google does expect advertisers, appreneurs, and developers to follow its guidelines closely.

The SDK allows banner, interstitial, rewarded, and native ads to appear within an app. Then, developers create ad units within the AdMob dashboard and set their optimal ad formats, placement, and targeting.

The AdMob platform is also where advertisers go to bid for ad space. They will pick the kind of ads that will engage users the most based on their demographics, interests, and consumption of app content. Developers earn revenue through AdMob primarily based on user interactions with the displayed ads, such as clicks, impressions, or ad views. 

But how does Google AdMob work out the revenue for appreneurs and developers? The platform weighs up advertiser demand, ad format, and user engagement. Also, the app category, user location, and device used impact revenue substantially.

The good news is that you’ll have access to a plethora of this information since AdMob offers you powerful analytics and reporting tools. These tools will help you stay current on your app’s ad performance, revenue, and user engagement. Having immediate access to this data will help you refine your ad strategy to increase your app’s revenue.

Why Is AdMob The Best Choice For Android Mobile Apps?

It offers seamless integration with the entire Android ecosystem, which is massive. Considering that Android runs on smartphones, tablets, smart TVs, Chromebooks, and Windows PCs, you’ll want to use a platform that lets you monetize across these devices, with some restrictions on PCs.

Furthermore, most integrated development environments (IDEs) and game engines allow easy integration with Google AdMob. So, if you’re using Android Studio, Microsoft Visual Studio, or the Unity Real-Time Development Platform, you won’t run into trouble implementing your ads. That’s not often the case with some lower-profile ad networks, as there’s often quite a bit of tinkering and back-and-forth with technical support to get things running.  

Since AdMob enjoys so much support, even from the development community, there’s always a solution readily available. There’s almost a never-ending availability of code, documentation, and plug-in solutions for integrating AdMob with your favorite programming language, framework, and tools. So, you’ll never be in a situation where you’ll waste time dealing with tedious integration issues when you could be fine-tuning your ad strategy.

Is AdMob Any Good For iOS Mobile Apps?

Yes, Google AdMob is just as good for iOS as its Android implementation. It could even be one of the better choices since Apple discontinued its ad platform, iAd, in 2016. However, it’s common practice for many iOS app developers to opt for ad mediation services like AdMob, AppLovin, and ironSource.

Ad mediation lets appreneurs, developers, and publishers access several third-party ad networks through a single SDK. It’s a powerful tool because it simplifies the integration process. It also helps to improve the effective cost per mille (eCPM) and advertisement fill rates by picking the most optimal network per ad request.  

But what is eCPM, and why should you care? It’s a metric that helps you determine what you’ll potentially earn after 1,000 ad impressions. On the other hand, cost per mille (CPM) is a metric that helps advertisers determine how much they’ll spend per 1,000 ad impressions. It’s crucial to keep tabs on these metrics, as they reveal conversion rates, the level of user engagement, and if ad campaigns are successful.

Be aware that a growing number of iOS mobile app developers prefer to use alternative monetization methods. Due to the App Store having more premium apps than its counterparts, developers will often focus on paid apps, in-app purchases (IAP), and subscriptions.

One of the main reasons why iOS developers choose this route is because there’s a greater tendency for iOS users to spend on apps than Android users. Some iOS developers and publishers have tried mobile ads but later found that the other types of monetization earn them more. As an appreneur or developer, you should always try different monetization strategies to boost app profitability. 

What Google AdMob Ad Strategies Should I Implement?

There are several AdMob ad strategies you must apply to increase revenue, which are as follows:

• Strategic ad placement: Test different ad placements and monitor user engagement. Continue to tweak your ad placement until user engagement is satisfactory.  
• Ad formats: Implement several ad formats and ensure to serve the optimal format for each target group.
• Targeting options: Use the platform’s targeting tools to serve ads relevant to each user. Constantly fine-tune this process to increase user engagement and subsequent revenues.
• A/B testing: Always conduct A/B tests soon after you implement an ad strategy to determine if it is succeeding or if it needs further fine-tuning.
• Analytics: Use AdMob’s analytics and reporting tools to gain insights into your app’s ad performance, revenue generation, and user engagement. Be sure to use this information to help you further hone your ad strategies and boost revenues. 

What Can Cause A Drop In AdMob Ad Revenue?

Several factors can lead to a drop in Google AdMob ad revenue. One of the most common factors is ad fatigue. Users don’t enjoy watching the same ads continuously within short periods and will subsequently engage with them less. Unfortunately, this leads to declining click-through rates (CTRs) and poor ad performance.

A decrease in user engagement within the app can also impact ad revenue. That’s mainly due to a lack of new features, outdated content, and poor app performance. Another cause for concern is market saturation, which often leads to increased competition for ad space. Furthermore, this drives down ad rates and decreases revenue in tandem.  

The wrong ad placement and format will also negatively impact ad revenues. Furthermore, unexpected events, seasonal trends, and changes in user demographics often cause ad revenue fluctuations. 

What Mobile App Monetization Strategies Can Benefit My App?

Mobile app monetization strategies are essential to succeed in the app space. But it’s the most optimal strategy that will help you unlock higher earning streams from your app. Here are several mobile app monetization strategies you should consider:

1. In-App Ads: Displaying targeted ads to your users is one of the easiest ways to earn revenue from your app. But you must carefully monitor all metrics in your analytics and respond accordingly when Google AdMob revenue drops off.

2. Freemium Apps: If you release a free version of your app with restricted features, you can later persuade users to unlock those features by purchasing the premium version. Offering extra functionality or content is an effective way to drive revenue, provided your target audience is willing to pay.

3. IAPs: If you plan to release a mobile game, consider selling additional content, upgrades, and virtual goods. Users unlock these by making small microtransactions, which eventually end up in large amounts, especially if you build a large audience.

4. Subscriptions: More app developers are implementing subscriptions, as it’s an effective way of generating consistent revenue. Users will pay a monthly or annual fee to access additional content and features.

5. Sponsorships: Partner with brands to sponsor specific content or features within your app. You will generate additional revenue, whereas your sponsors will build brand awareness. 

7. Data selling: A monetization strategy becoming increasingly common is selling data to advertising networks. However, the process of selling data must be ethical, lawful, and transparent to avoid angering your users and drawing the attention of privacy advocacy groups. 

How Is AdMob Improving In 2024?

On March 12, 2024, during the online Google for Games 2024 Developer Summit, an announcement about AdMob generated some buzz. A new real-time bidding feature and an upgraded mediation toolkit for Google AdMob will launch soon.

Furthermore, publishers can craft more dynamic ads to appear in-game environments. These ads will blend seamlessly into these environments and become more immersive to boost user engagement. Currently, developers are experimenting with these via the AdMob closed beta.

Due to user privacy concerns, Google will focus more on geo-based solutions in specific countries. The goal is to help advertisers invest further in these efforts and to gain additional insights into the performance of Android and iOS campaign spend. Be sure to take advantage of these new features to serve more exciting ads to your users and be more mindful of their privacy.

The Bottom Line

If you’re considering implementing ads in your upcoming app, then Google AdMob is one of the better choices — if not the best. While there are no guarantees that you’ll strike it rich, a sound mobile ad strategy will keep you on track. Contact NS804 today to learn how we’ll help you integrate AdMob ads and derive high revenues from your apps.