Have you been trying to come up with a profitable idea to effectively monetize your app, but concerned, what if it doesn’t pay you revenues against the intensive toiling? Worry not! Every app owner feels.
Irrespective of when your app was launched and whether it is an android or iOS, you can still monetize it in the market and earn millions of dollars effortlessly.
But how do you do this? With app monetization!
Why Is App Monetization Important to You? Read This!
App monetization pertains to the act of earning revenues from your app. Monetizing apps has become one of the major strategies to leverage app data and make money from apps.
- The app market is growing tremendously and the mobile app revenue will reach $935 billion by 2023. App monetization platforms and strategies all over the world are increasing by leaps and bounds and app developers are hastening their grab upon the global market to earn outstanding revenues from their apps.
- Mobile users are spending 87 percent of their time in apps, versus just 13 percent on the web. (source: mindsea). On average, users spend around 2-3 hours engaging themselves in mobile apps.
These statistics of course indicates that apps have great revenue potential stored in them for the app developers!
So, if you haven’t monetized your mobile app, you should start thinking of ways to convert those gazing eyes on mobile screens into revenue giving pockets through the best mobile app monetization platforms and strategies.
So How Will Your Apps Make Money? Here Are Your App Monetization Strategies.
Let us look at the best mobile app monetization strategies that are most effective in revenue-generation
1) Audience Monetization
Every company today possesses an app for their operations and business functioning. Users visit these apps looking for products and services that they intend to buy. Companies get a lot of data from these users by collecting their email ids, phone numbers, geographical locations and a lot more.
Audience monetization pertains to the process of identifying and marketing your audience-data to generate revenues. By involving in audience monetization, companies can identify the useful data that is profitable to them and sell those datasets further to earn revenues. As a result, companies generate revenues.
2)In-App Advertising for App Monetization
Advertising is the easiest way for apps to make money. You collect data and display the third-party ads within your applications. This way, you get revenue from the views, clicks and conversions. You may use the following ad formats:
You can monetize apps using rewarded ads. This ad form works best for mobile games where you watch a 30-second ad to unlock something special, like doubling your coins/points. These rewards provide extended health, or any other exciting features.
Banners are the most practised strategy of mobile app monetization. You must have seen them as the rectangular ads at the top or bottom of the screen.
Although banners are popular, they need to have focus and precise designs to draw attention and recognition. Also, banners are sometimes disturbing to the users as they overlap the content they are viewing. So, take care to not make them look disturbing while advertising.
Interstitial ads are those that fill up the whole application window hiding the content that you viewed. These ads attract more audience than banner ads owing to their size and are more productive.
Users can either skip these ads by clicking “x” and return to the application they were in. Otherwise they can click the “play”/“Install” option and direct themselves to the advertisements shown. Interstitial ads are more pronounced; hence, they attract more user attention and help to monetize android apps.
Native ads seem like a part of the application that does not look like ads at all. These are within the website in such a manner that you can’t say that it is an ad.
Generally, these ads are marked as “Featured”, “Sponsored by”, “Recommended for you.” For, e.g. to see what a native ad looks like, look at the sponsored content in the ad below.
In-app purchase is one of the most widely used mobile app monetization strategies. If you have kept your application free for download and you are seeking strategies to earn revenues, you could try implementing in-app purchases.
In this, the application is generally free but offers additional features to be purchased. Candy Crush is a good example of this. It provides a screen right to its users when they run out of gold bars since that is the likeliest time they will want to buy gold bars.
4)Freemium Models for App Monetization
The freemium model is a popular way to monetize mobile games and apps. In this model, you distribute your mobile app for free and generate revenue from those users who are willing to enhance their experience from the app exclusive features with subscriptions.
The most essential characteristic of a freemium mobile app is that it is engaging and rewarding for all users, not just paying users. So any monetization features must serve to enhance the experience rather than locking out free users.
For e.g., The writing app, ‘YourQuote’ now offers a freemium version. But the app has become so popular that recently they came up with a premium version of the app. The users can pay and book their unique hashtags and write on moving pictures (cinemagraphs).
5)Email and SMS Marketing for App Monetization
A study by Radicati Group indicate that the world sends about 196 billion emails daily, out of which 109 billion, is a business email. So, emails are a big part of the business world. Emails are direct, customizable, action-oriented, cost-effective and a popular way of business communication.
According to an SMS Marketing Statistics data, 48.7 million people will receive business SMS messages in 2020. Nearly 30% of consumers are responding to your SMS messages — and almost 50% of responders will make a purchase. Also, SMS have a higher response rate, are very accessible and cost effective.
This clearly shows that email marketing and SMS marketing is an opportunity that you shouldn’t be missing out on if you are monetizing your app for making good revenue.
Email and SMS Marketing is a popular way to monetize android app wherein you may send emails or sms about other brands to your subscribers and those brands shall pay you for doing so.
6)Sponsorship & Partnerships
Monetizing apps through sponsorship is another way out. Look for a potential partner with a similar customer base and offer to cross promote each other’s apps.
It works exceptionally well with event apps. For e.g., A business partnering with or sponsoring an event can pay you to have their content included in your app.
You can use ‘sponsor content’ to monetize mobile apps, wherein a sponsored post is shown as an advertisement by a particular company. This draws in a large amount of popularity to their app.
For e.g., Consider a case of Myntra displaying an article for their ‘End of season sale’ on ‘Womansera’ to widen user activity on their app. This is how apps make money through the sponsored content strategy.
If you offer a mobile app that is a paid one, that means that your app has a user value. User value shows that it is unique and exceptional enough to compete as a paid one as against thousands of free apps.
Often you may keep it a trial one and then demand prices for usage., for e.g. Tasker is an Android app made for getting things done quickly.You need to pay $2.99 to avail utilities like location, date, time and to pull off more than 200 different actions.
You need to pay $2.99 to avail utilities like location, date, time and to pull off more than 200 different actions.
8)Charge Users to Have an ‘Ad-Free App’
Having an ‘ad-free app’ is another answer to ‘how apps make money’. The users might already be using a free version of your app that shows ad contents.
You may ask the users to pay you a certain amount of money for an ‘ad-free version’ of the app in order to have a better user experience.
White-label app is a service where an application is ordered from Company B (reseller) by their business client but developed by Company A (third-party service provider). In simple words, it is a specific application developed by a provider that is rebranded and resold by multiple resellers to earn revenue.
For example, BiznessApps offers a white-label mobile app service that is unique to each of your business clients.
10) Affiliates Marketing and Lead Generation
Affiliates marketing offers rewards for each visitor, subscriber and sales. Also, partners can derive revenue in the form of percentage from earnings of other companies.
For eg., Amazon Associates is an affiliate where you can advertise any of Amazon ware just by placing its link, if users follow the link and make the purchase, you receive earnings.
Lead generation is about finding potential customers using contacts, and is mostly implemented for a strict target audience. It is found that the most popular places for lead generation are Facebook, LinkedIn and Instagram.
Choosing Your App Monetization Strategy? Dive Down to Know What Lies Ahead in the Future of App Monetization.
- There’s no doubt that apps are primed to be the go-to place for advertisers in the future with mobile ad spend expected to hit more than $186 million in 2020 according to App Advertising Statistics.
- In the recent scenario, app developers are willing to capture a great amount of revenue from a mobile app, by hiding their monetization efforts.
- As a result, mobile advertising is a great solution for them. They can capitalize with the ongoing video trend as well.
- Of course, ads aren’t the only monetization model you have to go for. Hence in the above article we’ve shown several kinds of monetization strategies to try.
- There’s a lot of potential in apps to fetch you revenues because users spend more time inside of apps today.
- Also there’s intense competition available in app stores, which makes you wonder about the future ahead. And all we can say is- this is going to be a lifetime opportunity for you as apps hold excessive revenue opportunities.
- Experts suggest that subscriptions are going to be more popular and acceptable in times to come.
- Creating good content is unquestionable. No matter how good the monetization strategy, the focus should always be on the content.
- Practicing data monetization is a great strategy whereby companies can identify the useful data that is profitable to them and sell them further to earn revenues.
- If the users are happy with your app experience, only then will they find how worthy your app is!
So you need to implement certain strategies/ combinations of strategies that are apt according to your app, budgets and your monetization goals. And the future is even brighter than you can possibly think of.
Here’s Our Ending Notes On App Monetization!
There is no ‘one rule’ to monetize your app effectively. You need to develop the app monetization strategies as per the purpose of your app.
You may add a pinch of advertising and sprinkle other approaches to make more revenue with your app.
If you have been using a strategy that’s not generating expected revenues, it’s time for a strategy optimization.
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