Are you aware that developing an app can earn you money?
Yes, you read it right! Nowadays apps are one of today’s most recent marketing and income techniques in the world.
In this rapid world of mobile technology, it is crucial to sustaining a lasting influence of mobile applications in this dynamic mobile app industry that is frequently swamped with innovation. However, to sustain market presence and earn a profit in return after investing time and resources in developing the mobile app, you should know what app monetization is and how it can be a game-changer for your business’s success.
In this article, we’ll discuss some of the finest monetization techniques for applications, but before moving on, you need to understand the term itself app monetization. So let’s get started:
What is app monetization and why should you have this approach?
According to Statista, Android users may select from 3.48 million applications in the Google Play store, while Apple users can choose from around 2.2 million apps in the App Store.
It is expected that the mobile app market can grow up to $653.91 billion during 2021-2025. In addition, mobile users spend most of their time on applications rather than browsers.
This shows that users are interested and happy to pay for apps, and there is a potential to turn billions of mobile users’ attention into money. However, this can only be done if you know how to strategies app monetization. You can choose from different models of monetization of mobile apps available but first, you need to understand what are you looking for, your target audience and their behaviour as user experience is integral for app monetization.
Let’s continue with tips on app monetization.
Charge for App Downloads
It’s a classic yet simple technique to monetize your app by charging a charge to download it. One significant advantage of this strategy for creators is that they receive income at the exact moment when customers download their products but this model is less popular these days as it is difficult to persuade users to pay for the app before even trying it out. It’s a classic yet simple technique to monetize your app by charging a charge to download it. One significant advantage of this strategy for creators is that they receive income at the exact moment when customers download their products but this model is less popular these days as it is difficult to persuade users to pay for the app before even trying it out.
Also, marketing expenses escalate, in particular, if your competitors provide a free alternative app. If you go with this app monetization strategy, you’ll need to decide how much you want to charge for each download.
This technique is most effective when:
● Your target audience is aware of your well-known brand.
● You are ready to invest more and have in place a strong marketing and PR plan.
● Your app is offering unique services and has fewer competitors.
● Your offered cost should be reasonable for the services offered.
Advertisement through an app is one of the popular and great ways of monetization. The advertisement, however, must be relevant to your target audience and not disrupt the app’s use. There are a few different types of ads that you may use to execute a proper strategy, such as:
- Banner Ads:
Typically seen at the top or bottom of the mobile screen, they can be disruptive but can generate maximum impressions.
- Interstitial Ads:
Ads that cover the app’s UI without interfering with the user’s experience. While the user waits for the app to respond, it occurs. Timing and frequency are important in this case, so don’t flood your user with adverts.
- Native Ads:
Native advertising offers a seamless ad experience with layouts that fit the look and feel of your app.
- Ads Listings:
With this approach, whole lists with ads and offers are created. It is important to have a place on this list, so that some of your partners may pay you higher to feature.
- Affiliate Ads:
To earn commissions from other apps by advertising them through your app.
This ad approach works well when users visit your application often and sessions last for a longer length of time. There are several revenue models, where income is generated through sponsored ads while the app remains free for users. The more people you have, the more revenue you’ll make from your ads.Types of ad revenue that involves:This ad approach works well when users visit your application often and sessions last for a longer length of time. There are several revenue models, where income is generated through sponsored ads while the app remains free for users. The more people you have, the more revenue you’ll make from your ads. Types of ad revenue that involves:
- CPC (cost-per-click)
- CPI (cost-per-install)
- CPA (cost-per-action)
- CPM (cost-per-mile)
- CPV (cost-per-view)
In-App ads are a responsible option if implemented appropriately, therefore you should consider the placement of ads in your app before adding them.
This app monetization strategy is derived from the combination of two words: free and premium. It offers a free app download but charges for additional features.
While the basic features and functions are free to use. In this approach, the free version will grab your potential user’s interest and provide them with the choice to try the app without the worry about getting paid for something they might not like.
This boosts the reach of the audience and increases app download rates that have a beneficial impact on the ranking of your mobile app in the app store. This type of apps offers tiered payment options, which is a great strategy to sell more features to users who want more from the apps.
If you wish to monetize your app through a freemium strategy, remember to offer users extraordinary features with a great deal of experience.
It’s one of the most popular mobile app monetization techniques. This approach is employed by several of the most played games on the app store where players may purchase power-ups, more life, in-game cash and other benefits to maximize their app experience and gaming playtime. This strategy will make enough money and will offer real value to the users.
In this approach, when a user downloads the app without paying, some app features will be provided to subscribers before those who do not, meaning that some app features will only be available for a limited time example: a one-month free trial. Following that, the user must pay a charge.
The rate at which payments are made will be determined by the subscription plan chosen. This strategy works in favour of the long-term retention of app users. This approach focuses on accessing content rather than features.
That is to say, before subscribing, users may access limited content. This model is suitable when your app is content-driven or it provides users with really valuable content.
Popular apps like Spotify, Netflix are the best examples of subscription-based apps in the market.
This method involves partnerships with advertisers that give rewards for specific in-app behaviour. In simple words, the app makes money by earning a proportion of the income from redeemed rewards.
Sponsorships link your audience to other brands and can develop brand credibility by employing intelligent collaborations. Furthermore, this can enhance your industry exposure and credibility and can inspire users to download your app.
In-app monetization may take many different forms. Consider your audience, offering, and capabilities when selecting an app monetization approach for good outcomes. Shortly, the level of competition in the app market will expand more so you’ll have to ensure that you use the best techniques since a great marketing strategy leads to strong sales.
App monetization is certainly one of the primary aspects of your corporate strategy for maximum profit. If you are still confused about it and need a piece of expert advice, contact us, we can offer the best solution for you.
Naba is a Content writer with Engineering Bachelor degree. She takes care of all the documentation and a key person in making project strategy.
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