Ads are more prominent in apps than ever before. And it’s clear why: in-app advertising generated an eye-watering $314.5 billion in 2023, which will grow by 10% yearly.
However, app developers and entrepreneurs need to consider the impact these ads can have on their product's user experience and long-term effects.
Below, the Monedata team explores why your app should avoid ads and discusses alternative revenue streams that could help you keep your app performing at its best.
Think about user experience
When someone downloads your app, they’ll have certain expectations of its functionality and overall experience. If your app doesn’t deliver in the way they hoped, the chances are that they’ll uninstall it. Indeed, 28 per cent of apps are uninstalled within 30 days of the download.
To keep customers engaged, you should avoid any elements that may disrupt or interrupt their interaction with your content. Unfortunately, ads can be highly disruptive and impact the user experience. Users appreciate seamless and uninterrupted experiences, and the presence of ads can be perceived as a nuisance that breaks that flow.
You only have to consider pop-up ads that obscure content to auto-playing videos that disrupt the user's focus to see why users install ad blockers. Studies have consistently shown that intrusive ads negatively affect user engagement and satisfaction and can damage your brand’s reputation. It can make you appear desperate and greedy for cash.
Think about this scenario. A user is engrossed in your app, taking full advantage of its features and functions. Suddenly, an ad pops up, covering their screen and diverting their attention from your app's core offerings. This interruption disrupts the user's engagement and risks alienating them from your app altogether. In short, ads really suck.
The financial implications
Introducing ads into your app may seem straightforward to generate revenue, but you should consider the hidden costs. One of these is the need for technical expertise and additional development time. Integrating ads into your app requires careful consideration of the networks and formats you choose, which can be time-consuming and resource-intensive.
What’s more, if your ads are not well-optimized, they may slow down your app's performance or lead to bugs and glitches, damaging your user experience.
You should also consider the actual revenue from ads. While ads may offer a seemingly lucrative revenue stream, ad blockers are becoming increasingly popular and can reduce the number of impressions and clicks on your ads. And as the app market becomes more saturated, competition for ad dollars increases. This can drive down ad rates, making generating substantial revenue from ads alone even more challenging.
Making the Transition to an Ad-Free App
If you've decided to move away from ads for your app, you should consider a phased approach that benefits both your users and your bottom line. Losing a revenue stream like ads overnight could strain your business; a slow and steady approach makes sense.
Evaluate your app's current ad placement, remove any intrusive ad formats, and ensure the app's core functionality is not compromised. Throughout the process, effective communication with your user base is vital. Explain the reasons for the change, emphasizing the benefits to the user experience, and you’ll soon foster a sense of community.
If you’re looking for an alternative solution to ads, consider Monedata. We empower app publishers to earn from their data. Our innovative SDK allows seamless integration, transforming your data into revenue. Click here to find out more and get started today.