With digital media ad spending expected to command half of the total global advertising spend as early as this year, adtech’s importance for any business has never been greater. But how can mobile-app businesses unlock previously untapped revenue streams? How can large companies make sure they don’t miss out on millions in potential revenue from leveraging the latest advertising technology?
Here are three ways CFOs and marketing executives can capitalize on adtech’s latest features to turn their already existing audiences into profits and gain a leg up on tech-reluctant competitors.
1. Monetizing Your Audience Data
If you have a large and engaged in-app audience, the chances are that others will want to reach your users. By gathering audience data on the buyers and sellers within your app, you can monetize your users by selling ad inventory to external brands and agencies. If your app has a lot of snowboarding users, for example, you can, in turn, use this information to convince winter athletic gear companies that advertising on your app will help them reach an ideal audience with a high potential of engaging with or purchasing their product.
Proper targeting is essential for advertisers, and app businesses can use the information they have to sell ad inventory and fuel a new resource of revenue.
2. Cross-App Promotions
Through programmatic advertising, a promotion in one app can be shown in other, external apps that are all connected under an audience network. A scarf seller on Amazon, for example, could utilize this audience network to showcase their scarf to users searching for scarves on other e-commerce platforms. This widens the reach and appeal of a given product or service by showing it across a large web of apps, yet brings revenue back to the original app by enabling users to click on an external ad and be instantly and seamlessly taken back to Amazon or the original app to then purchase their product.
Business app managers can team up with fellow advertisers within an audience network to find new audiences and potential customers and increase their digital ad revenues, while marketers can utilize adtech to put their product in the most targeted and relevant new audiences.
3. Programmatic Real-Time Bidding
For e-commerce apps, programmatic real-time bidding allows advertisers to pay an app to populate their product for specific search terms within the app. Just as our fashion outlet selling scarves might pay Amazon one dollar for each time their product shows up and is clicked on when someone searches for scarves (their bid), business app operators can scale down Amazon’s model to use within their own app. Advertisers, like a scarf seller, also have the option of increasing their “bid” to potentially show their product higher in the relevant search results on the app and outbid their competitors. Customers are almost always searching for products on the marketplace apps they use, so e-commerce apps should monetize these searches and add revenue from the advertisers looking to reach their in-app audiences through these in-app searches.
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