
Webinar Recap: Busting Ad Monetization Myths in Non-Gaming Apps
Monetizing non-gaming apps is often seen as a challenge. Some say that there’s no easy way to work in ads, others say that there’s too much reliance on subscription models, and certain marketers state that finding a balance between user experience and revenue generation is a huge drain on resources. These are valid concerns that can be a struggle to balance alongside all the other responsibilities non-gaming marketers have to contend with.
In Liftoff Intelligence’s recent Ad Monetization Myths in Non-Gaming Apps Webinar, Natalie Kenyon, Account Executive at Liftoff Monetize, was joined by Sandra Amir, Senior Director of Growth Partnerships at Unity, Božo Janković, Head of Ad Monetization at GameBiz, and Dave Macli, CEO of Audiomack. Together, they discussed the myths around ad monetization in non-gaming apps and how marketers can navigate the real monetization challenges they face.
Didn’t get the chance to join the webinar? You can catch the full video on demand here or read through the blog post below, where we go through all the key findings—including how to make the most of different ad formats and tactics to keep users engaged.
Myth #1: Non-gaming apps can’t generate as much ad revenue as gaming apps
It is a common misconception that non-gaming apps are overly reliant on subscription models and that they can’t generate as much ad revenue as their gaming counterparts. In fact, non-gaming apps require diverse revenue sources if they’re to be successful. Ad monetization is one of the most important factors to consider. David Macli, CEO of Audiomack, noted that in his experience, users typically spend six to nine months using apps on ad-supported tiers before subscribing.
Božo Janković, Head of Ad Monetization at GameBiz, found that over 95% of users in most apps will not make any purchases unless they’re prompted to do so, emphasizing the importance of in-app advertising. However, Janković notes that while it tends to be relatively easy to identify suitable places to integrate ads into gaming apps—such as natural breaks in gameplay when players finish a level—inserting ads into non-gaming apps can often disrupt the user experience as there’s no obvious entry point.
But just because something is challenging doesn’t mean it is impossible. Some non-gaming apps have begun testing ways to creatively use ads to benefit the user rather than feel intrusive. For example, Netflix recently introduced ad-supported tiers with lower subscription prices, Duolingo uses rewarded apps for players to gain additional lives or currency, and PocketFM has invested in building an in-app currency to make its apps feel more worthwhile.
Myth #2: Ad format diversification isn’t essential for non-gaming apps
Another common misconception is that focusing solely on one ad type in non-gaming apps and trying to perfect it is a good strategy. Božo Janković advised against this, as the results likely aren’t going to be worth the costs.
“We often see developers trying to squeeze every last drop from the ad formats they’re already using,” Janković says. “They go into tiny little details, looking at what they can do to optimize campaigns further. That takes a lot of effort, development time, resources, and A/B testing. And after all that, that will only increase their revenue by maybe two, three, or five percent.”
Instead, diversifying the types of ads used in non-gaming apps is a better method of increasing ad revenue. In terms of which ad formats are suitable, there aren’t really any restrictions—interstitial videos, banner ads, native ads, and app open ads, now available with the Vungle SDK, are all perfectly fine choices. However, what will work best for each app will likely vary, so it’s important to take a step back and test different combinations to see the most significant impact on revenue without impacting the user experience.
In some cases, implementing new ad formats in more cohesive ways can even improve the user experience. Dave Macli experienced this first-hand while working on AudioMack. Despite increasing the number of ads running, Macli received fewer complaints about ads. Macli found that using a variety of formats opened up natural ways to work ads into the user experience with fewer disruptions.
“We started looking at user touch points, like where maybe the user wants to download something or get a premium feature just behind the paywall. We found that that is a good opportunity to run a rewarded ad,” Macli says. “So, we have these different value exchanges. If you open the app to save something to your library, that’s an app open ad. If you want to start a new listening session, that’s interstitial. And then if you want to do something like save something to your phone, that is a rewarded opportunity.”
As users were generally happier when they encountered strategically placed ads, results showed they were much more likely to engage with them—which ultimately resulted in a revenue boost.
Myth #3: Gaming ads don’t convert well on non-gaming app traffic
Diversifying ads in non-gaming apps isn’t just about the formats. It’s also about the content of the ad. Božo Janković shares that while showing gaming ads in non-gaming apps may seem counterintuitive, approximately 70% of smartphone users play at least one game on their device, so there’s plenty of crossover.
Sandra Amir, Senior Director of Growth Partnerships at Unity, also suggests using networks to identify suitable ads that target the correct audiences. She suggests that fewer restrictions, such as not eliminating gaming ads in non-gaming apps, will allow networks to optimize their algorithms and show relevant ads.
Amir says: “We want to show ads that are relevant for users because we will have higher eCPMs and higher revenue for every impression. On the other hand, for the network, it’s the same. They want those conversions. They want that attention from users. So they have the same interest as us, showing the most relevant ads to the most appropriate user.”
Myth #4: It’s too difficult to balance ads with user experience in non-gaming apps
Balancing ads with user experience is typically easier in gaming apps than non-gaming apps. Gaming apps have clear breaks in gameplay, currency, and level-based rewards, which naturally work well with rewarded ads. As non-gaming apps have a very different user experience, there’s a lot more to consider when deciding how and when to show ads to users, particularly when it comes to interstitial ads.
To get around this, Dave Macli suggests considering which premium features users would consider worthwhile enough to watch rewarded ads for. For example, in his app Audiomack, you can watch lyrics or enter the sleep timer. Macli also recommends isolating points when users are looking at the screen and are more likely to acknowledge an ad presented to them. In Audiomack, this is when users are selecting songs or searching for new music. They’re looking directly at the screen—as opposed to listening in the background.
Macli also emphasizes the importance of testing different ways of integrating ads, highlighting that they can impact the user experience: “Testing is really important because we’ve got it wrong multiple times. We wrongly thought a feature would be better, leading to lower retention and worse reviews. It’s always good to have a theory and then test it. Unfortunately, that means that your development will go a lot slower, but there’s nothing worse than releasing something and not knowing whether or not it was positive.”
Finally, Božo Janković suggests creating user groups or segments based on behavior rather than a one-size-fits-all approach. For example, you would usually want to avoid showing interstitial ads to paying users, but you might have data showing that, in some regions, people are more tolerant of these ads. In that case, you could build those regions into separate groups with parameters that market to their nuances. Janković notes: “If you try to find a specific solution for a specific user group, you’re gonna make your job significantly easier.”
For more information on how to make the most of ad monetization in non-gaming apps, you can watch our full webinar here.
Be sure to check out our Non-Gaming Ad Monetization Trends Report, which highlights new ad placement types, strategies for tackling new markets, and best practices for balancing ad revenue goals with in-app engagement and user retention.