by admin ,July 19, 2022
App monetization models are sometimes disapproving of the success of your mobile app development. Whether you have created a paid app or an app that is free for installation, you need to create a monetization strategy that satisfies our clients/users while ensuring that the company is profitable. For example, news apps suit subscription-based services and gated content, while gaming apps can be advantageous for in-app purchases. In this read, we will cover everything one needs to know about the process of monetizing your app, sharing various app monetization models and definitions for important terms.
Per the report, free apps cover 90% of the available apps in the App Store and 95% of all the apps in the Google Play Store. When you analyze the appropriate ways to structure app monetization models, you must take the user journey and overall experience into the note. Choosing the methods will lead to user frustration, poor reputation, and a surplus in churned users.
Finalizing which modernization methods are appropriate for your mobile app can be a tedious task but also a very crucial step in making your app profitable. Furthermore, you will find a lot of monetization methods available in the market, how they function, and how you can achieve company goals.
Offering your users in-app purchases is an excellent way to monetize the app. If your app is free, like the rest of 95% of Google Play Store offerings, in-app can break the barrier and enhance the user experience. You can take the example of the mobile gaming trend Pokemon GO. That game has an in-house shop that allows users to buy items using PokeCoins. A community called “trainers” frequently uses the app and can earn up to 50 PokeCoins per day or purchase PokeCoins with their real money through the user’s preferred app store. Per a gaming article, Pokemon Go made a gross of over $2 billion with the help of in-app purchases within two years post launching the app.
Before making in-app purchases available to the clients, you can consider how you can accelerate the user experience. This will, in return, help you reduce churn because of the extra benefits earned by the user. In mind, it is worth giving your time to search for the right balance between an excellent free app and pocket-friendly benefits through in-app purchases.
When deciding on your in-app purchase options, you should know how consumables differ from non-consumables. Consumables are not static and limited, while the other ones only need to be purchased for only once. Forex: in-game money like PokeCoins are consumables, while users have to pay to unlock a game level can be a non-consumable purchase.
Even though your app is free for downloading, you can always monetize your mobile application by providing a subscription-based service to the users. This will allow you to give a different experience to the users who pay and those who use your premium services.
While setting up a subscription package for your mobile app, you don’t face the barrier of an all-or-nothing approach. The approach can vary based on your app’s offering; it can be smarter to set up more than one subscription package with different layers of value. Tinder, a leading dating app, follows this model. Although you got the app for free to download, Tinder also offers Tinder Plus and Tinder Gold.
The most used way to monetize your mobile apps is by opting for a method called running in-app ads. This method offers a quality source of revenue for applications that remains free in the app store. However, if you run ads in your mobile app, you need to learn the industry’s terminology and how to approach advertising monetization.
For ex: advertisements that don’t align with your brand can rupture your brand reputation. Slow, ineffective ads can disrupt the user experience, create aggressive nature in users for the brand, and cannot deliver up to the mark conversion rates for the advertiser. To avoid common pitfalls, you also need to ask some tough questions before running in-app ads. Moreover, 78% of clients will thoroughly accept mobile advertising related to their interests, so that such pitfalls can be easily avoidable b serving the correct formats and working with related advertisers.
Sponsors and partnerships can be an efficient way to make money out of your mobile app via hire a mobile app developer. If you own a large user base or have created some industry-particular niche, brands might be intrested in using your mobile app, which links them to their targeted audiences. This can also be called influencer marketing.
Making your users aware of the sponsors and trusted partners can bring the ball to your court. Not only you’re able to monetize your app, but you also can connect users to the brand that might find them helpful.
To ensure you generate the maximum revenue possible without interrupting the user experience, you need to create an overall strategy that includes more than one of the techniques discussed in the above’s read. If you are looking for more such piece of information, visit our website or reach out to MAADI for more.