Mobile App Monetization Strategies
All sorts of mobile applications experienced a boom in their popularity during the Covid pandemic. This is when the percentage of downloads and utilization of different applications was higher than ever before. It encouraged many companies to pay close attention to mobile app marketing and monetization in order to become more successful in the changing environment.
Implementing mobile app monetization models in your project or existing program is one of the important things that you should consider to be successful. With the proper mobile app monetization strategies you can get a lot of benefits, here are just a few of them:
- you can quickly return the money spent on product development and testing
- thanks to monetization, it is easier to pay for technical aspects necessary for the functioning of the application (i.e. servers and their maintenance, round-the-clock technical support, etc.)
- users will receive quality updates and new features more often, which has a positive impact on user experience and product popularity
- with the help of monetization you can generate a really good income, which can be spent on expansion and creation of more innovative projects
Of course, sometimes it can be difficult to find the right type of monetization, especially if the subject of your application is specific, or it is simply niche. In this case, it's best to try different options or combinations of them to see what works for you. Below we bring to your attention the top most effective monetization methods used by mobile app owners around the world.
Best mobile app monetization options
One of the easiest options that is suitable for almost all types of apps is in-application advertising. This method involves placing different advertisements inside your program. That is, you will be paid for showing your users advertising content from orderers. There are many types of serving ads inside your application, here are the main ones:
- banner ads – square or rectangular advertising banners that are usually placed at the top or bottom of the screen.
- native ads – ads that perfectly match the theme of the application. It will definitely be interesting to your users and will not cause a negative reaction from them.
- promotional videos – small commercials that can last up to 1 minute and advertise a certain product or service.
- interstitial ads – ads that periodically pop up on the whole screen, overlapping the rest of the content.
- playable advertising – a model that attracts the user to the advertised product by engaging them into action.
This model is somewhat similar to the previous one, but here we are talking about a deeper relationship between the application and the sponsor's product. In other words, it's a partnership with a certain sponsor on a long-term basis. That is, the sponsor pays you good money for constantly offering its product to your users and putting the brand logos of the company in your application. Of course, this is more suitable for niche software and at the same time, the product must be suitable for its topic, otherwise the percentage of conversions will be much lower than expected.
Paid downloads of applications
If you're looking for a quick monetization income, the paid download option is just right for you. This means that when people want to install your application, you will get your income right away. This is definitely not the most profitable model in the long run. That's why, as soon as you get your first income, it's better to think about implementing other monetization methods in your application.
Read also: Cross-Platform App Development with Flutter
For owners of applications that attract potential users to use them on a regular basis, such a monetization model as in-app purchases is a very suitable option. Programs do not need to have an overwhelming number of users to generate a good income. Loyal customers will pay you on an almost regular basis, as they are really interested. Some examples of this type of monetization include:
- additional paid features;
- purchase of one-time game currency;
- paying for access to exclusive content and more.
Paid subscription model
Such a monetization method is widespread among streaming services such as Spotify, Netflix, Apple Music and others. This means that if the concept and features of your application are interesting to users, you will receive a stable income from regular subscription fees. In general, subscription fees are paid once a month, and it is convenient for both the application owner and the subscribers. Also, many programs can offer several types of memberships at different prices. Everyone can choose what suits them best and thus increase audience engagement.
If you already have an application that is successful in the market and you want to increase your income, you can think about data monetization. That is, you can sell information about your users to interested parties, for example it can be such user information as:
- place of residence;
- preferences etc.
All this information is very valuable, as it can help to improve advertising and make it more relevant, as well as understand whether a particular product will be popular in the market. Basically, this is a very profitable method of monetization, and the income from it is stable. But, the main problem is that some users do not want to share data about themselves, so you can make some of your audience scared away.
This method may not be appropriate for all apps, especially if they have been on the market for a while and have not yet gained a loyal fan base. But, if you already have a permanent customer base that likes the concept of your application, you can benefit from it. For example, it is possible to directly ask users to support the development of your mobile app through donations. However, you should realize that this method should be used only when your application is free, because otherwise you can only discourage users from making donations.
The essence of this type of monetization is that through your application you can sell related to your theme products. Otherwise, if you are positioning your mobile app as a sales platform, you can sell any kind of products through it. What do you get? You will be paid a percentage from the sale of the product sold within your application!
Obviously, in order for everything to work as it should, you need powerful equipment that will be able to process large amounts of data. Therefore, you will have to invest a considerable amount of money before it all pays off.
Useful app monetization tips
In order for your application to be successful and bring you regular income, the process of implementing monetization should be approached very responsibly. Here are some tips that can help you in this difficult endeavor:
- Research existing monetization strategies in detail, as well as their pros and cons. It is very important to be aware of the most current trends and understand how this or that model works.
- Determine the niche and topic of your application, and then see what monetization models are used by competitors and giants in this sphere. It will give an idea of what is currently working well.
- Try mixing a few monetization models and get them tested. Of course, all of this should be done after a detailed analysis and understanding of what goal you are pursuing.
- Choose those monetization models that will not scare away users, but on the contrary will only improve user experience. At the beginning, do not chase a large income. Think about how to attract an audience and make people regular users of your application.
How SDH can help you
Software Development Hub is a company that is ready to turn your ideas into reality. A team of top-notch developers, managers, testers, data analysts and others is ready to help you at all stages of your application development. Our cooperation model is built on close communication between team members and the client. Thus, as a result, we get a project that can demonstrate high quality and market relevance.
Thanks to the knowledge and skills of SDH experts, we will select and implement the most suitable monetization methods for you and test them. Therefore, from the very beginning you will be able to generate income and start recouping your costs even at the prototype stage!
Also, if you already have an application that has been on the market for quite some time and you want to improve its efficiency, we can help you too! Ask for a consultation and get answers to all your questions, as well as an opportunity to make your business more successful.