How Can Mobile Ads Compliment IAPs? An Expert Q&A

The article addresses the perceived conflict between in-app purchases (IAP) and in-app advertising (IAA), arguing they can coexist and drive holistic revenue growth. Saloni Gangal from AppLovin shares insights on ad types: banner (least intrusive, consistent revenue), interstitial (use at natural breaks), and rewarded ads (highly engaging but risk cannibalizing IAP if not capped). Best practices include launching a game with ads pre-integrated, segmenting users (show ads to non-purchasers, avoid for high-LTV purchasers), and testing new strategies on new users first to avoid upsetting existing ones.

Key metrics emphasized are ARPDAU (average revenue per daily active user) as a holistic measure that incorporates CPM, session length, and impression rates, and retention to ensure ad tradeoffs are worthwhile. Additional tips: use bidding to improve CPM, cap rewarded ads daily to prevent CPM degradation, and choose rewarded entry points like 'spin the wheel' or store exit prompts. The article concludes that a user-friendly experience integrating both IAP and IAA is achievable through strategic planning and ongoing testing.