Qtonz uses Firebase to boost ad revenue by 4x and grow engagement
Introduction
Since its inception, Qtonz Infosoft pvt. ltd. has been committed to making content creation easier for Indian language users. That's why in 2019, the team launched MBit Music, their short, templatized video creation app. With over 10 million downloads, MBit quickly became one of the most popular video creation apps in India and is currently among the top 10 apps in its category on the Google Play store.
Challenges
Despite MBit's popularity, the Qtonz team found it challenging to retain users and effectively monetize the app. Competition from both global and local players, as well as the changing expectations of Indian users, made it difficult to keep users engaged for longer periods. And while they were able to generate some ad revenue, they struggled to establish alternative monetization models such as in-app purchases or subscriptions given the low propensity of their users to pay for in-app content.
To increase revenue, Qtonz decided to look for opportunities to optimize their ad strategy. After reviewing their Firebase and AdMob data, they discovered that about half of their sessions were under-monetized, with the overall ratio of ad impressions to daily active users (DAUs) lower than expectations. They also discovered that users were not exploring large parts of the app.
Solution
The team theorized that they could increase revenue by replacing their "one-size-fits-all" approach to ads with a customized experience for different stages of the user journey. To test this, Qtonz used Google Analytics to segment their users into cohorts such as first-time users, repeat users, and power users. Then they used Firebase Remote Config to dynamically control and adjust the frequency and placement of ads for different user cohorts, while using Firebase A/B Testing to see the impact of these changes on user engagement and retention.
For example, they reduced the number of ads that a user would see on their first day using the app and changed the placement so that ads would only appear after users completed a key in-app action, making them less intrusive. For users with longer session lengths, Qtonz increased the number of ads shown from 2 to 3-4 per day. To encourage more users to explore the app, the team also used Firebase Remote Config to add mastheads within the app to promote new features, without needing to republish their app. Meanwhile, the team monitored key product metrics like daily engagement time, DAU/MAU, and daily and weekly retention for each cohort to make sure their changes were not adversely impacting user experience.
By experimenting with different ad formats and frequency combinations, Qtonz was able to increase their average revenue per daily active user (ARPDAU) by 190%. Leveraging the power of Firebase coupled with monetization insights from AdMob, the team was able to quickly and easily personalize their ads experience to drive both user engagement and bottom-line results.
Results
4x increase in Ads revenue
190% increase in average revenue per daily active user (ARPDAU)
"When we were struggling to find the right monetization strategy for our app, Firebase not only showed us where the opportunity was, it gave us the tools we needed to optimize our ad strategy with confidence."
- Mr. Piyush Kasundra, Founder & CEO of Qtonz Infosoft Pvt. Ltd.