Mobile app monetization: Google AdMob in the mobile advertising market

As a mobile app developer, you probably face the dual challenge of monetizing your apps for revenue generation while abiding by data protection regulations.

The time mobile users spend in-app continues to grow, so in-app advertising (IAA) is becoming an integral part of any comprehensive mobile marketing strategy. In-app ads not only benefit developers, but also users and advertisers, making them a preferred choice for app monetization. And while IAA used to be just one of many app monetization methods, with the recent update to Google Admob’s requirements, the rules of app monetization have changed.

So how is Admob positioned in the mobile advertising market? AdMob holds a pivotal position in the mobile advertising market. As per the projections, the in-app advertising market is expected to grow from USD 135.92 billion in 2022 to USD 904.61 billion by 2032, indicating a Compound Annual Growth Rate (CAGR) of 20.87%. This growth is fueled by the increasing use of smartphones and mobile apps, enhancing the reach and effectiveness of in-app advertisements.

Around the world in 2023, almost one thousand companies are using Google AdMob as mobile marketing tool, including mobile game studios such as Homa Games, JOYCITY, GameHouse, IGG, and more.

Key:

• CPI (Cost Per Install) – Advertisers pay each time the advertised app is installed.
• CPC (Cost Per Click) – Advertisers pay each time a user clicks on the ad.
• CPM (Cost Per Mille) – Advertisers pay for every thousand impressions of their ad.
• CPA (Cost Per Action) – Advertisers pay each time a user completes a specific action, like making a purchase.
• CPCV (Cost Per Completed View) – Advertisers pay when a video ad is viewed to completion.
• iOS: Apple mobile operating system
• Android: Google mobile operating system
• Unity: Game development platform

Collecting user consent positively impacts the bottom line of your game. By optimizing opt-in rates and complying with privacy regulations, you can increase your app’s Average Revenue Per User (ARPU). Mobile users appreciate being given a choice and are more likely to engage with targeted ads if they have given their consent.

What’s more, starting from 16th January 2024 Google will stop serving personalized ads if you do not collect consent with a certified CMP. Therefore, if you have a mobile app that uses Google AdMob it will be crucial to ensure that your app is both privacy-compliant and able to achieve optimal and continued monetization.

Embracing mobile app privacy and obtaining user consent is not just a requirement, but also a smart business move that can significantly impact your app monetization strategy.

User consent is a must whenever we collect personal data, but obtaining user consent can be a delicate process. Here are some best practices to improve your opt-in rates and ensure a positive mobile user experience:

It’s crucial to explain the necessity of user consent and its implications lucidly. Make sure your explanation is not buried in legal jargon but is easily understandable for your player base. For example, a pop-up message stating, “We need your permission to collect and use your data to enhance your gaming experience.” Get more tips on mobile app consent.

Include an easy way for users to give or withdraw their consent. This could be a simple toggle in the settings menu, allowing users to change their preferences at any time.

Be open about how you use and protect the player’s data. This could take the form of a ‘Privacy Policy’ link within the app/game menu, which lays out how data is collected, used, and protected in layman’s terms. Learn how to create a user-friendly privacy policy or notice.

Implement age verification to ensure compliance with children’s online privacy laws, particularly important for mobile games. For instance, a pop-up asking for a player’s birth date before starting the game.

If you share data with third parties, make sure the players are aware and have given their consent. An example could be a checkbox during the sign-up process that states, “I agree to share my data with select third parties for personalized ads.”

Regularly update your users about any changes in your data practices and ask for renewed consent if necessary. This can be done through in-app notifications or emails.

Tailor your consent messages to suit the local regulations and languages of your users. For example, General Data Protection Regulation (GDPR) compliance messages for European users.

A consent management SDK is a software development kit that helps developers manage user consent for data tracking and personalized advertising. It enables developers to display consent messages to users and obtain their explicit and informed consent before collecting and using personal data.

Admob does not provide a consent management SDK directly. However, you can integrate a third-party consent management SDK like Usercentrics into your app to manage user consent for personalized ads.

Usercentrics In-App SDK is a popular choice among developers for implementing consent management solutions and ensuring compliance with data protection regulations. By integrating Usercentrics or a similar SDK, you can easily handle user consent preferences and tailor your ad experience accordingly.

Consent management SDKs like Usercentrics in-app SDK offer several benefits to app and game developers:

• Meet Google requirements and ensure compliance with data protection regulations such as GDPR

Meet the latest Google requirements and ensure compliance with data protection regulations such as GDPR. By obtaining user consent, you can collect and use personal data legally, mitigating the risk of fines and penalties.

• Provide transparent and user-friendly consent messages.

Users appreciate transparency and are more likely to grant consent when they understand how their data will be used. This improves the overall user experience and builds trust with your user and/or gamer base.

• Customization options

Consent management SDKs allow you to tailor the consent flow to match the look and feel of your apps and games. This ensures a seamless integration of consent management into the overall user interface.

• Analytics and reporting features

You can track and analyze user consent rates, allowing you to optimize consent messages and strategies for better results.

• Demonstrate your commitment to data privacy and protection

This can enhance your reputation among users and potentially attract more users who prioritize privacy.

Overall, consent management SDKs offer a comprehensive solution for developers to comply with regulations, improve user experience, and build trust with their audience.

To implement Admob and obtain user consent effectively, you should consider the platform, SDK, and features provided by Usercentrics in-app SDK.

Our platform features include customizable consent message templates, granular consent management, and the ability to obtain consent on behalf of a single user.

What’s more, as a Google-certified CMP with support for iOS, Android, Flutter, React-Native and Unity game engine, our SDK offers a flexible approach to solving data privacy compliance for mobile apps and games, integrated in your app in less than an hour. Plus, Usercentrics Apps CMP is also TCF-certified.

Data policy regulations in apps are constantly evolving, and developers and publishers must stay informed. Valerio Sudrio, Global Director of Apps Solutions at Usercentrics, predicts that user consent will continue to be a key focus in the future.

“As premium games and ad networks prioritize compliant data, the industry is moving towards consent-based marketing. Developers who embrace privacy and prioritize obtaining user consent will future-proof their monetization strategies and stay ahead of the competition.”
– Valerio Sudrio, Global Director of Apps Solutions at Usercentrics

Data protection regulations like the Digital Services Act (DSA) and the Digital Market Act (DMA) are also significantly affecting mobile game compliance and game monetization. The DSA focuses on transparency and protection for consumers, which means mobile game companies must ensure their data collection practices are transparent and protect user data. If in-game ads are employed, they cannot be based on sensitive data, potentially affecting targeted advertising strategies.

The DMA law, on the other hand, is designed to prevent market dominance by large tech firms like Google, Meta and Apple, who may add additional data privacy requirements for businesses advertising on their platforms. For mobile app and game companies, this could mean they need to ensure fair competition and avoid combining data in a way that may be seen as self-preferencing, potentially impacting how you cross-promote your apps or use user/player data for monetization.

Overall, these emerging data privacy regulations compel mobile companies to rethink their data collection, use, and monetization strategies. Non-compliance could lead to legal repercussions and loss of user trust. “App and game developers targeting European audiences must adapt to these regulations to ensure compliance and maintain their revenue streams”, Valerio adds.