Glossary | M | Mobile App Ads

How do ads work on apps?

App developers looking to earn revenue from ads typically integrate monetization platform SDK. The app developer chooses at what points the ads appear in their app, which types of ad units are shown, and the frequency and timing between each one. These variables – placement, frequency, and timing between each ad – are crucial parts of a developer’s monetization strategy and should be A/B tested thoroughly. Developers earn money from ads after their users view them or complete a specific action. For system-initiated mobile app ads, developers earn revenue when an impression is registered.

The first step of incorporating ads in a mobile app is deciding which ad units to use. It’s generally a good idea to use multiple types of ad units, because different ads will perform better for different segments of users. The next step is finding the best placements for each ad unit. With system-initiated ads, it’s always important to minimize the disruption to the UX, so place interstitials only at breaks in the session. Perhaps users receive an interstitial ad when they first open the app (’s splash ad unit), and after they finish completing their first in-app event and aren’t actively interacting with the content.

There are a few core pillars that will help developers implement an effective mobile app ads monetization strategy. First, is partnering with a monetization platform that has a powerful solution.  When a developer has an in-app ad monetization strategy in place, it’s crucial to leverage analytics to see what’s working and what can be improved. An industry leading platform, like, will provide all the key metrics needed to understand how to optimize in-app ad monetization.