Ad Monetization

Ad monetization is the practice of earning revenue by showing advertisements inside a free app. Developers can offer their product at no cost while generating income through ad placements. Key metrics include eCPM (effective cost per thousand impressions), fill rate, and revenue per daily active user.

Common Ad Formats

Banner ads are small rectangles that persist at the top or bottom of the screen. They earn modest revenue with minimal disruption to the user. Interstitial ads are full-screen placements shown at natural transition points, such as between game levels. Rewarded video ads let users watch a clip in exchange for an in-app reward, making them popular in games because players feel they gain value. Native ads blend into the content feed and feel less disruptive than other formats.

Balancing Revenue and Experience

The core challenge is balancing income with user satisfaction. Too many ads or mistimed placements drive users away, raising churn and lowering long-term earnings. Limit frequency, place ads at natural breakpoints, and offer a paid ad-free upgrade. Mediation platforms help maximize fill rates and eCPM across multiple networks.