It wasn’t until recently that publishers were responsible for managing multiple publishing platforms and monetization sources at once to maximize their overall ad revenue. Then, in-app header bidding came onto the scene circa 2015, rivaling Google’s waterfall method. 

Where the waterfall method left both advertisers and publishers hanging to a certain extent, in-app header bidding provided a more efficient way for mobile publishers to monetize their ad inventory via ad requests.

In this article, we’re going to tell you everything you need to know about in-app header bidding, including how it works, how it benefits publishers and advertisers, and more.

What Is In-App Header Bidding?

Also referred to as advance bidding or pre-bidding, in-app header bidding is a programmatic advertising technique that allows mobile publishers to provide ad space to multiple supply-side platforms (SSPs), ad exchanges, or networks simultaneously. It’s also a notably more fair method when compared to the waterfall model, which consisted of unsold ad inventory being offered to the highest-ranking platforms first and remnant inventory being offered to the rankings below.  

In-app header bidding automatically generates bids from multiple advertisers simultaneously by placing a publisher’s inventory across multiple demand-side platforms (DSPs). This is also in contrast to real-time bidding (RTB), which makes DSPs wait “their turn” to enter an auction. With in-app header bidding, DSPs can participate in equal measure, allowing publishers to receive demand-based bids for their ad space, leveling the playing field between the two parties in terms of traffic value bidding.

How Does It Work?

In-app header bidding works by gathering bids from everyone simultaneously. By “everyone,” we’re talking about DSPs, ad exchanges, and ad networks (as mentioned above). 

All parties can enter the auction at the same time to bid on the same inventory. However, unlike the waterfall method, in-app bidding doesn’t stop the auction at the first “acceptable” bid. Instead, the in-app header bidding method depends on a string of JavaScript code that is embedded into the header of participating publishers’ websites. The function of this string of coding is to connect publishers’ websites to all potential sources that may be interested in buying advertisements. 

So, every time a publisher’s page is loaded, advertisers and associated parties can bid on each impression on the loaded page. This allows the highest bid to win rather than stopping the auction at what’s been set as acceptable. 

It also happens in a matter of milliseconds.  

What Are the Benefits of In-App Header Bidding?

In-app header bidding comes with several benefits for both publishers and advertisers, which is why this method — along with header bidding — has become so popular. 

Let’s start with the main benefits of in-app header bidding for publishers.

Higher Earnings

In-app header bidding allows both web and mobile app publishers to present their ad inventories to even more advertisers, SSPs, ad exchanges, and other ad networks than ever before. This enables publishers to get more buyers to place higher bids to advertise to their intended audience. 

This allows publishers to maximize their earnings by selling their inventories at better CPMs.

Maximized CPMs

In-app auctions also enable publishers to see how much advertisers are willing to offer per impression in mobile apps before the ad is placed. This allows publishers to determine how much each ad impression is worthwhile, comparing the advertisers placing bids simultaneously. From there, the highest-bidding demand source will end up winning the impressions.

It’s like a systematic way of maximizing your CPM — with much less effort toward negotiations.

Higher Fill Rates

When multiple demand partners participate in an auction, fill rates automatically increase. This means publishers can place as many pop-under advertisements as they want on their website because these types of ads don’t occupy space directly on the web pages.  

Better Inventory Value

Another benefit of in-app bidding is that it allows publishers to optimize the actual value of their inventory via header bidding. This is because advertisers are more inclined to bid more during in-app header bidding auctions to win their desired ad placements.

With prices for premium inventory increasing, publishers can further increase their overall ad revenue.

More Consistency

In-app header bidding is also more dependable regarding the flow of bids — due to the variety of bidders added to each auction, willing to bid at different price points for a better chance of winning a bid on as many premium impressions as possible. 

Publishers can also use this opportunity to remarket cookie matches, which are some of the highest-paying CPM rates out there.

Lighter Tech Stack Load

Server-side header bidding offers a lighter tech load for in-app header bidding, reducing the need for multiple SDK integrations and shifting the SDK integration to the server. This simplifies the app’s codebase and reduces the SDK-related technical complexities.

Superior Management

The in-app header bidding ecosystem simplifies the entire auction management process. In header bidding, for example, a wrapper is implemented into the web browser and organizes multiple demand partners while also defining the rules for auctions. 

This provides more control on a per-impression basis with, once again, little effort.

Now, let’s talk about the benefits of in-app header bidding for advertisers.

More Transparency

The in-app header bidding method allows advertisers to access more and better inventory via header bidding. It also makes it easier for programmatic buyers to access this inventory because it doesn’t require tag-based integrations, making all the ad space available visible rather than leaving them with blind spots. 

In this type of bidding environment, advertisers will not only have access to all the inventory available from publishers, but they also have the ability to bid in several channels at once. Of course, if they’re not careful, programmatic buyers may bid against themselves.

More Access to Premium Inventory

Before the general concept of header bidding was introduced, web and mobile publishers had to sell their premium inventory in private marketplaces. This meant that the open marketplaces would only see lower-quality inventory. 

When in-app header bidding came around, all of this changed — for the better. With all the data collected in each web page’s header, advertisers can now view publishers’ premium inventories and quickly place bids to secure their desired ad space. 

Better Targeting and Further Reach

In-app header bidding allows advertisers to view ad inventories more effectively. Essentially, a website’s demographics and impressions get included in each ad inventory report, and all of this data directly help advertisers develop more effective targeting strategies to get the right ads in front of the right eyes at the right moments.

Moreover, this enables programmatic buyers to access their audiences on a much larger scale than ever.

Despite all of the benefits that advertisers are seeing with in-app header bidding, there are a few drawbacks. The main disadvantage for advertisers is the implementation of in-app header bidding. 

Put simply, whenever new technologies in the ad tech world are introduced, it can take a significant amount of time for new and old users to learn them and get used to how a new system works. Even publishers have difficulties setting up in-app header bidding because the technology is complicated to implement. 

Final Comments

In-app header bidding is one of the modern answers to demand source fragmentation, as it allows for multiple-party bidding at once. Advertisers can bid on ad impressions across as many sources as possible, while publishers can ensure that their inventories are sold at optimal prices. Not to mention, it offers a greater level of transparency in programmatic buying than ever before.

It’s essentially a more democratized advertising solution that benefits all parties involved. It also allows programmatic buyers to compete for ad space in real-time rather than being placed within a hierarchy of demand partners. This method completely levels the playing field by allowing advertisers and publishers to view each offering in detail compared to averages and limited data. 

Of course, in-app header bidding is hardly the final culmination. Ad tech technology is ever-evolving to make programmatic media buying and selling more efficient and safer for all the parties involved. Keep up with the ad tech industry’s current and incoming trends by watching our blog and other resources.

The post How Does In-App Header Bidding Work? first appeared on Freestar.

In this blog post, we will delve into the significance of MAU in-app monetization and explore why it is vital for app developers and publishers. We will discuss how MAU serves as a performance measurement tool, highlighting its role in evaluating user engagement, assessing monetization potential, determining market value, and aiding user retention and growth strategies.

Furthermore, we will differentiate MAU from another key metric, Daily Active Users (DAU), and explore how their distinct time frames of measurement offer valuable insights into app usage patterns, user behavior, and monetization strategies.

Understanding MAU and its importance is crucial for app developers and publishers seeking to optimize their monetization efforts, attract potential investors, and drive sustainable growth. So, let’s dive in and explore the world of Monthly Active Users and its role in app monetization success.

What is MAU?

Monthly Active Users (MAU) is a metric commonly used in in-app monetization to measure the number of unique users who engage with an app within a given month. It provides insight into the app’s user base and can be used to evaluate its popularity, growth, and engagement levels.

MAU is particularly important for app monetization because it helps app developers and publishers understand the potential reach and impact of their monetization strategies. By knowing the number of users who actively engage with the app monthly, developers can make informed decisions about implementing advertising, in-app purchases, subscriptions, or other revenue-generating techniques.

Having a high MAU count indicates a larger pool of potential users who can be targeted for monetization efforts. However, it’s important to note that MAU alone does not guarantee revenue. User engagement, retention, and the effectiveness of monetization strategies also play significant roles in generating revenue from app users.

Why is MAU important?

Monthly Active Users (MAU) is an essential metric for several reasons:

1. Performance Measurement: MAU allows app developers and publishers to measure the performance and success of their app over time. By tracking the number of active users monthly, they can assess whether their user base is growing, stable, or declining. This information helps them evaluate the effectiveness of their app’s features, content, and marketing efforts.
2. User Engagement: MAU provides insights into how engaged users are with an app. Apps with a high MAU count generally indicate that users find value in the app and continue to use it regularly. It measures how frequently users return to the app, interacts with its features, and potentially generate revenue through ads, in-app purchases, or subscriptions.
3. Monetization Potential: MAU is a critical factor in determining the monetization potential of an app. A larger user base means there are more opportunities to generate revenue through various channels, such as advertisements, sponsored content, freemium features, or premium subscriptions. Advertisers and potential business partners often consider MAU when assessing the attractiveness of an app for partnerships or advertising campaigns.
4. Market Value: MAU is an important metric that potential investors or acquirers consider when evaluating an app or app-based company. A higher MAU count suggests a more extensive user base and can positively impact the perceived value of the app or company, potentially leading to investment opportunities, partnerships, or acquisition offers.
5. User Retention and Growth: MAU helps app developers identify user retention patterns and areas for improvement. By comparing MAU figures over time, they can assess whether their app is retaining existing users or if there is a churn rate (users leaving the app). Understanding user retention helps optimize user experience, address potential issues, and implement strategies to enhance user engagement and growth.

MAU is important because it provides valuable insights into an app’s performance, user engagement, monetization potential, and market value and helps guide decision-making for app developers, publishers, investors, and advertisers.

Difference between MAU and DAU

The main difference between Monthly Active Users (MAU) and Daily Active Users (DAU) lies in the time period over which user activity is measured.

• Monthly Active Users (MAU): MAU refers to the number of unique users who engage with an app or platform within a specific calendar month. It provides a measure of the app’s overall user base and is commonly used to assess long-term trends, growth, and user engagement over a monthly period.
• Daily Active Users (DAU): DAU, on the other hand, represents the number of unique users who interact with an app or platform within a single day. It measures user engagement and activity daily and provides insights into the app’s immediate usage patterns and retention.

The key distinction is the time frame of measurement. MAU provides a broader perspective by considering user activity over a month, which helps capture long-term trends and patterns. It helps assess overall user growth, engagement, and the impact of marketing initiatives over a longer period. On the other hand, DAU provides a more granular view of daily user activity and can be valuable for understanding immediate user engagement, identifying usage patterns, and evaluating the app’s ability to retain users daily.

Both MAU and DAU metrics are essential for app developers and publishers, as they provide different insights into user behavior, engagement, and the effectiveness of app features or monetization strategies. Depending on the specific goals and context, app owners may prioritize one metric over the other or analyze both to gain a comprehensive understanding of their user base.

In Conclusion

The monetization potential of an app is closely tied to its MAU count, as a larger user base offers more opportunities for revenue generation through ads, in-app purchases, subscriptions, and partnerships. Moreover, MAU influences the market value of an app or company, attracting potential investors and acquisition offers.

MAU plays a crucial role in-app monetization, offering valuable insights into app performance, user engagement, monetization potential, market value, and user retention. By analyzing and leveraging MAU data, app developers and publishers can make informed decisions to drive success in the highly competitive app ecosystem.

The post What Are Monthly Active Users? first appeared on Freestar.

This blog will explore various strategies for increasing mobile app revenue through ads. From selecting the suitable ad format to optimizing ad placement and targeting, we will cover everything you need to know to maximize your app’s ad revenue potential. So, if you want to increase your mobile app revenue through ads, keep reading to learn how to do it correctly.

How much does an app make per ad?

The amount an app can make per ad can vary widely depending on several factors. These factors include the type of ad format, the ad length, the platform it’s being served on, and the users’ geographic location.

In general, the revenue from ads is calculated on a cost per thousand (CPM) basis, which means that the advertiser pays a certain amount for every thousand views of their ad. The average CPM for mobile ads can range from $3 to $10 or more, depending on the abovementioned factors.

For example, if an app developer serves a 30-second video ad with a CPM of $5 to their users, and 10,000 users watch the ad, the revenue generated from the ad would be $50. However, it’s important to note that the actual revenue the developer earns can be lower due to ad serving fees and revenue share agreements with ad networks.

It’s also worth mentioning that some ad networks offer a revenue share model, where developers can earn a percentage of the revenue generated by the ads served in their app. In this case, the revenue earned per ad will depend on the revenue share percentage agreed upon between the developer and the ad network.

Overall, the amount an app can make per ad can vary widely, and it’s essential to consider all the factors that can affect the revenue generated from ads in your app.

What factors affect mobile app ad revenue?

Several factors can affect the revenue generated from mobile app ads. Understanding these factors can help app developers optimize ad revenue and increase their app’s profitability. Some of the critical factors that can impact mobile app ad revenue include:

• Ad Format: The ad format can significantly impact the revenue generated from ads. Different ad formats, such as rewarded ads, interstitial ads, and in-stream ads, can have varying CPM rates and engagement levels.
• Platform: The platform on which the app is being served can impact ad revenue. Different platforms, such as iOS and Android, may have varying ad rates due to user behavior and advertiser demand differences.
• Geographic Location: The geographic location of the app’s users can also impact ad revenue. Depending on their target audience, advertisers may be willing to pay more for ads served to users in specific regions or countries.
• User Demographics: Advertisers may be willing to pay more to target specific demographics, such as age, gender, or interests. Apps with a user base that matches the advertiser’s target audience may generate higher ad revenue.
• Ad Placement: The placement of the ad within the app can also impact revenue. Ads placed in strategic locations, such as between levels or during natural breaks in app usage, may have higher engagement rates and generate more revenue.
• Ad Network: The ad network used by the app can also impact revenue. Different ad networks may have varying CPM rates and revenue share agreements, which can affect the revenue generated from ads.

In summary, several factors can affect mobile app ad revenue. App developers should consider these factors when implementing ads in their apps and work to optimize their ad revenue by experimenting with different ad formats, lengths, platforms, locations, demographics, ad placements, and ad networks.

8 Tips to Increase App Ad Revenue 

1. Strategic Ad Layout – Focus on monetizing the highest traffic screens where they will be impactful. There will always be some degree of weight attached to any ad tech integrated within an SDK, so implementing ad units only on screens with very low traffic or placing them mostly BTF will create weight on the app without significant revenue benefit. Try to implement ads where that will be more viewable and be considered most valuable to the buyer.
2. Utilize Fixed/Sticky Placements – This creates more viewable inventory, and you can utilize refresh to garner additional impressions since the ad is constantly in-view.
3. Diversify Ad Formats – The more opportunities for ad formats, the more demand you can capture from buyers. Different ad formats competing against one another in the same placement can also be an excellent way to capture multiple demand sources for the highest yield.
4. Utilize higher impact formats such as Interstitial or Video – Full-screen interstitials can be frequency capped and configured to render at a point where they are not disruptive to the user experience, such as between pages where there is a natural break from looking at content. You can also implement video in a way that makes sense for your user base. A scrollable video thumbnail may make sense for long article content because the user can collapse the unit or move it around their screen to move it away from the content. For gaming apps, a rewarded video unit can be a great way to get users to opt into watching a video ad in exchange for in-app currency
5. Utilize Timeout Rates at the Ad Unit Level – For in-content ads, a shorter timeout rate might make sense to speed up the auction and force an ad to render before the user can scroll past the ad container. A longer timeout rate for a fixed unit might make more sense because you can extend the auction long enough to get the highest CPM out of each auction.
6. Increase Demand for Your Inventory – Bring in several client-side and server-side demand partners to compete for impressions. This will increase the chance of ad fill and drive up CPMs due to competition. Some demand partners specialize only in specific ad formats or geos, so bring on partners that make sense for your app.
7. Strategically price inventory – Implement price floors to force buyers to increase their bids for your inventory without decreasing the fill rate too much. Consider factors like ad format, geo, viewability rate, and OS when determining where price floors should be set.
8. Increase your app traffic – The more users that visit your app, the more impressions can be served, and the higher you can scale your revenue

Maximize Your Mobile App Ad Revenue with Freestar

How much does an app make per ad? That depends on many factors, one of which is the ad tech partner you choose to work with. At Freestar, we pride ourselves on our demonstrated history of bringing app publishers’ ad revenue to previously unseen heights. 

To partner with Freestar and increase your app revenue, all you have to do is get in touch. Reach out to our team by filling out this form. 

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