I am finishing my iOS Application which includes Ads.
In iOS, Apple recommend developers to put ads at the bottom or top of the window (View). Does the cash the developers create change if you put the ads on the top or bottom?
Additionally, would the user appreciate ads on the top or bottom?
Let's take a step back and look at your business model. Should you even include ads in your app in the first place? Are they likely to be successful?
For advertising, context is everything. In general, ads are most effective when the user has what is called "commercial intent", meaning they are looking to make a purchase. The next most effective ad is when users are in discovery mode, educating themselves about potential products they may buy in the future. In part, context is why targeted ads on Google have been so effective whereas similar ads on social media and other sites are not. The ads on Google can help a user perform their task (searching) whereas the ads on Facebook do not help users connect with their friends in any way.
Personally, I have never once found an iPhone ad useful or even relevant to me and I would never purposefully click on one even if I did. The reason is this: if I'm in an app, I'm in it for a reason, whether to check news, play a game, or do something else. I have little to no incentive to click on an ad, and, in fact, seeing ads does nothing but frustrate and annoy me.
So, let's suppose your users either have either commercial intent or are in discovery mode while using your app. Will the ads that you're serving be relevant to what they are trying to do? If you have a travel booking app and your ads are all about hotel discounts, great, then ads might be a good fit for your app. If, however, your ads are about pet supplies, they will be decidedly less helpful to the task at hand and are more likely to frustrate the user, especially if they don't even have a pet.
So, when should you include advertising in an app?
If you answered no to any of the above, you should skip ads. Goading users by annoying them them to upgrade isn't a great way to get customers or a loyal fan base.
But wait, you say, what do I do, then? How do I make money? There are a few ways, depending on the application. Many games have switched to in-app purchases. That may be a possibility. You could also have just the premium app.
However, I would consider having a free and premium app that are differentiated by available features and not by whether or not ads are present. Keep your free app useful enough that people will want to use it, but save some of the features that are most likely to appeal to people who will pay for the premium version.
In general, I would advise most ventures to steer away from the ad-based business model, no matter if you have an app or a website. It's a worse experience for users and it rarely actually makes the business money. Throwing up ads is the lazy way out. Spend a little more time on a creative business model and you'll be far more likely to succeed.
Which do you think is a better foundation for a business?
Or:
It is perhaps a subtle difference in mentality, but it can go a long way with your users.
Ads on mobile apps sucks, and badly. Not only because you don't want user to accidently tap them (as @DA01 rightly said) and take them out of your app, but also it affects the performance.
Having said that, You can try these two ad placement ideas
1) Show the ad when you are navigating or showing loading screen before showing a new content.
2) If your app is a content-based and you are showing some comments or a listing which is not clickable, then you can put your ad inline with those list items. Idea is, if the user realize that there is no click event on the list items then it is easier for him scroll since he can do that without worrying about unintentional click. However, you need to clearly demarcate that it is an ad.
For example, check this app website http://bollywoodtweetjokes.herokuapp.com/
