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"Users are starting to churn because of the ads." Versus: "We cut the ads, and this month's revenue is down by half." Every mobile app publisher has wrestled with some version of this. The hardest problem in monetization is the balance between revenue and usability. Many publishers try to build UX-friendly ads, but a wrong approach often loses them both: revenue and usability. The common mistake is reading a UX-friendly ad as simply an ad that doesn't stand out. So what is a UX-friendly ad, and is it really incompatible with revenue? This post covers the myths and the truth about UX-friendly ads.
To understand UX-friendly ads, start with what an ad is for. Ads run on the market logic of supply meeting demand, and they've evolved around the needs of the demand side: the advertiser. (See: Where to start with ad monetization)
From the advertiser's point of view, an ad exists to capture user attention. That inevitably interrupts the user experience to some degree. Advertisers expect stronger performance from placements that grab the user's eye effectively, so they'll pay more for them.
A placement the user barely notices has the opposite profile: it doesn't hurt the experience, but its revenue is limited. So publishers are left with the task of finding the right balance between monetization and user experience.
If you have to run ads anyway, an ad that bothers users less is the better one. Some publishers go further and design ads so natural they're hard to tell apart from in-app content. But that approach can damage user trust, the opposite of the intent. A user who clicks something thinking it's in-app content, then realizes it's an ad, walks away feeling deceived. Ads have to be clearly distinct from in-app content.
This case shows plainly that a UX-friendly ad and a UI-friendly ad are different concepts. A UX-friendly ad isn't about hiding the ad. It's about making the ad clearly an ad and integrating it well with the app's core value. Place ads naturally without harming the app's core value, and deliver an ad experience users can accept for the sake of the app's sustainability. Successful monetization is the process of finding a careful balance between revenue and user experience.
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Here's a question. Between 10 native placements and 1 rewarded video placement, which is the more UX-friendly ad? There's no right answer. The best choice shifts with each app's character and context.
Ten native placements can make an app feel ad-heavy, but you can offset that by delivering small bits of value throughout the app. This fits when ads sit outside the app's core feature, or when the core feature doesn't yet deliver enough value to earn strong user loyalty. In those cases you use the less intrusive native format. As noted earlier, though, a less visible ad doesn't command a high eCPM. So you build volume by showing it more often across several screens, earning enough revenue that way.
One rewarded video placement, by its format alone, already risks pushing users away. But an unskippable full-screen video of 30 seconds or more is bound to hold the user's attention, so its eCPM is comparatively high. If your app's core feature delivers value that offsets the friction, users may find the ad somewhat inconvenient but will tolerate it. That lets a publisher hold a sensible balance and still earn strong revenue.
As the points above show, a UX-friendly ad strategy demands a deep understanding of your app's core value and your users. Know what your app's core value is, what your user personas look like, and what journey users take to experience that core value. Only then can you place ads in exactly the right spots.
In the early exploration stage, for example, users haven't experienced the app's value yet, so introduce ads carefully. A native format that blends with in-app content works well here. On screens where users feel the app's core value, you can add ads boldly, as long as you don't disrupt the experience. Here it matters to place ads close to the core value, so that value offsets any resistance the user feels.
The heart of monetization is finding the most perfect balance between UX and revenue. To judge which placement will perform, look through the advertiser's eyes. To judge which placement bothers users less, look through the user's eyes. There's no numeric formula (one ad per feature, say), so reaching the optimal point is hard. Understand which features your users get value from, and how much, and find the perfect balance that's right for your app.
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