App monetization is the method of gaining capital with your mobile application. The process involves several procedures with diverse channels that support businesses monetize their apps. Being a developer, one should be aware of the policies and must choose the best to stay active in the app economy.
Read below to make informed decisions on choosing the best mobile app monetization technique to earn more loyal users and generate more revenue.
Need for Mobile App MonetizationHow to Make Money With Your AppThe app may be a paid or a free app, but you must prepare a monetization strategy for your mobile app to endure the competition, generate revenue, and achieve your company goals.
A paid mobile app unable to influence many users as compared to a free mobile app. The good news is that your free mobile app can also make your revenue by leveraging the most advanced monetization models. Based on the statistics, 98% of global app revenue comes from free apps.
Initially, a company should understand each app monetization channel to choose the perfect method for you and your app. Developers should come up with a killing monetization strategy to keep your application afloat. The wrong selection can create a negative impact on the overall user experience and affect your revenue.
Best mobile app monetization strategiesIn this blog, we will provide a full summary of mobile app monetization procedures. The following are the collection of monetization possibilities with the most potential that supports anyone with a mobile app.
1.Freemium model/ Subscriptions
Free apps built with in-app monetization strategies and are free to download. This model is apt for great long-term revenue generation possibilities. The in-app monetization strategies include subscriptions, gated content, ads, or premium features. For example, Amazon and Flipkart are the mainstream eCommerce app that practices in-app purchases for monetization.
2.In-app purchases
The in-app purchases are suitable for both paid and freemium apps for selling virtual and physical products. The principal concept of in-app purchases is that your app acts as a sales channel, and you can benefit despite app store fees. This model is suitable for retail, gaming, or service apps and meant to add real value to users. For practicing in-app purchases, the app requires well-designed incentives without compromising user experience.
3.Paymium model
Paid apps require users to pay once to download your app and use all features without additional cost. The developer can gain revenue with every download. The prime issue with its model is that you can earn initially, but you may end up losing your loyal users in the long run. The next important thing is people show interest in downloading free apps compared to paid apps. Hence, companies should come up with an idea of creating an app that is worth paying.
4.Sponsorship model
Once your app starts to gain popularity and extends its user base, it can attract certain brands and sponsors. The sponsorship ads in a prominent place in your app can help promote their business in exchange for a payment. Sponsorship models vary a lot from the advertisement as this method depends a lot on the app user base demographics. In sponsorship models, the ads are more exclusive and much less random than banner ads.
5.Product extensions
The product extensions model comes under indirect monetization and a prominent way to generate revenue for your business. For example, you provide software and present an android or iOS app free to download for your users. The app doesn’t generate revenue directly within the app but appends value to your software/product and helps your product/service stand out from the competition.
6.Advertisements
Advertisement is all about generating revenue by displaying ads that contain both direct and indirect monetization strategies. Ads are an easy way to make money from your mobile apps. Further, there is a broad choice of opportunities available for your enterprise with precise targeting possibilities that cover your potential clients. At the same time, users find the ads to be – intrusive and annoying making, it a risky option for a startup.
As a developer, it is hard to choose between Android or iOS app monetization. Both methods have their distinct characters with benefits.
Based on the statistics, Google play store accounts for – the largest share of global app downloads compared to the app store. In Android, communication and gaming apps constitute the top categories regarding iOS, photography, entertainment, and shopping apps hold the top position.
Next, Android has a large user base, and iOS has a low but potential user base. Hence, one should select the option based – on the size of your target audience, frequency of customer engagement, and possibilities with both the platform. Ultimately, launching your mobile app on – each program is perhaps the ideal solution to cover all the bases.
Tricks/Advice to optimize app earningsWhether choosing Android app monetization or iOS app monetization, keep the following points in mind. The perfect app monetization strategy to make the most with your app.
1.Audience study
Your app to reach its audience effectively and attains its goal effortlessly initially, understand your user and their demands to create an app with a perfect app monetization strategy.
2.Competitor study
Competitors are another vital part that affects your income in both a positive and negative mode. Developers should analyze the competitor monetization approach they are using in their app.
3.User experience
Spend time to put user experience first while developing your mobile app since user experience is the foundation for any successful mobile application. That can pave the way to increase winning opportunities.
4.User retention
Improve user retention with several factors such as user experience, navigational factors, app performance, user engagement, and swiftness since a considerable number of users – can always responsible for more revenue.
5.App analytics
There are various mobile app analytics tools available – to optimize your earnings with in-depth insights on revenue, users, and geography. These analytical features help you to fine-tune your strategy using data.
6.App marketing
For making your audience to the subscription stage, app marketing plays an important role. Some of the app marketing techniques include in-app purchases, subscriptions, or paid apps.
7.Multiple app monetization channels
Do not just stick with a single monetization channel. Use more than one model to boost revenue. Developer/companies must know which monetization channel work well for your application.
8.Content strategies
Regularly or steadily updating the app content is one of the effective ways to convert your new or often victors to lifelong, paying users. The content can be in the form of business blogs or industry news stories.
Companies spend a lot of their resource – on building apps, and they cannot give them for free without a return revenue. Therefore, a developer should learn about app monetization techniques while practicing the app-building stage itself. Making app monetization is one of the crucial steps in driving revenue to – the developer or the organization that develops the app. Further, choosing the right business model for your app will balance your goals with your target market expectations.
We conclude that there is no one-size-fits-all approach when it comes to a monetization strategy for apps. Our best advice is that analyze your product audience and market trends before choosing a suitable mobile app monetization strategy. In that way, you can make your users pay for the app without any regrets.