How to Monetize Your Mobile App Effectively
Tags:
Freemium ModelIn-App AdvertisingMonetizing Mobile AppsIn-App PurchasesSubscription
That being said, it is somewhat difficult to make real money from a mobile application but if done correctly, the end product maybe a steady flow of cash. There are many Mobile App Monetization Techniques that can be used inclusive of in-app purchases and ads for the many types of applications, and the variety of users. The important thing to remember is that you have to select the right approach depending on your audience and the app’s features.
Below you will find an extensive tutorial on how to monetize mobile applications and which strategies are the most appropriate for developing a successful app and boosting its revenues.
Are you ready to begin your second Mobile app? Here are the best app developers to help us create your perfectly designed customized app. Contact us now!
1. Freemium Model
Freemium Model is considered to be one of the most common and successful App Revenue Models that can be used while remaining loyal to a large number of users. In this approach of monetization, users download and install a stripped down version of your application for free, with premium features, content or tools within the application bought for a fee.
- Benefits: Presents the downloadable version with the freeware and establishes a possible market base with enhanced editions.
- Best for: Utility applications, payapps, and applications that are specialized in one way or another, like sports monitors and so on.
With a freemium model, the more amount of people that install the app; the more chances are that they will purchase other services they consider to be useful.
2. In-App Advertising
In-app ads are by now a very popular method of monetizing mobile apps and can work for a huge number of apps, assuming your main functionality is not going to be paid. This approach includes several ad formats:
- Banner Ads: Small and requires no complicated interactive elements, and placed on the top or at the bottom of the screen.
- Interstitial Ads: Banners that cover the entire screen of a device and appear at logical breaks in gameplay, such as when a level is finished.
- Video Ads: Clip-like content, which may or may not be encryptable into the flow of application usage.
- Native Ads: Interstitial covers that look like natural parts of the application rather than advertisements.
- Benefits: It does not depend on people’s revenue to make revenues; it accommodates different types of applications.
- Best for: Free of charge applications, that are frequently (daily, several times a day) opened, used, engaged with for longer periods of time (i.e., games or social networking apps).
Indeed, the balance between ad format and frequency is tight, so the users should not get bored and uninstall the app.
3. In-App Purchases (IAPs)
In-app purchases are the options to purchase various items, improve functional characteristics of the app, or get the extra content within the app. It is one of the most effective ways of generating revenue in your mobile app particularly when the apps are in the game, lifestyle or utility domain.
- Consumable IAPs: Digital commodities that consumers can purchase again and again, goods in games such as extra lives or game coins.
- Non-Consumable IAPs: Including additional features, themes and customization, which can be purchased and activated only once.
- Subscriptions: Applications that send a subscription fee or a certain amount of money at regular time intervals to offer the client unique or ‘behind the pay-wall’ content.
- Benefits: Very adaptable and can be offered at various prices which are desirable for a large number of consumers.
- Best for: Games, health and fitness, or educational purposes or any other application that can offer a diverse element of entertainment or service on a daily basic with post ENGAGEMENT of users.
IAPs are some of the most effective techniques of monetizing applications that have real utility, through the provision of in-app digital goods and services.
4. Subscription Model
The subscription based model is one which offers the guarantee of constant, continuous, and constant income derived from the frequent collection of payments from users for special products or services. This app revenue model is most suitable for the content-based app where the application provides weekly, monthly or yearly subscriptions.
- Benefits: Develops a predictable income and prolongs user retention, which helps avoid problems associated with rapid turnover of clients.
- Best for: Applications in use for media consumption or health, education or productivity which requires update information or content.
Subscriptions prompt constant activity, and this is not a secret that users are in a better position to renew subscription in case they are active and continue to find value.
5. Paid Apps
Paid apps demand user’s money right from the start, before the person can download the app or use it at all. While this approach is slowly fading away due to the rise of free downloadable apps, it is best applicable for apps with innovative and high quality for which people are willing to pay dollars.
- Benefits: Gives an instant source of revenue per individual download, and does not require using ads, or purchases.
- Best for: Localized, special purpose market producing abundantly valuable apps, for instance, practical utilities or paid games.
Also remember that with a paid app you will have to focus more on marketing the app because the users won’t be able to try it for free for a week or so.
6. Sponsorships and Partnerships
Sponsorships are where the business partners with brands that seek to access your application’s users. To put it in a simple manner you get paid for allowing people who want to advertise their brand. This can be with the help of creation of the branded content, native advertising or the product integration into the application.
- Benefits: Enables opportunities to make money in innovation that do not including affect the use by consumers.
- Best for: Apps that have a loyal and small, yet an active and well-defined target market that includes health, fitness, and travel apps.
These areas can generate a good deal of sponsorship revenue while presenting users with material that is interesting and valuable or that they need.
See Also: Wonderful Tips to Design an Excellent Landing Page
Looking for ways to advance your Mobile application development? We have expert app developers who will ensure that your app suits your needs as you need it. Get started with us now!
Conclusion
However, when choosing the right model of app monetization, one has to consider the audience and the type of application. You can choose one or two methods first, and observe the response rate of the audience to the content you share, and how the increased amount of shared content affects the response rate of the audience. Such an approach can leverage several methods at once ensuring the highest revenues with an employee or client’s satisfaction.
According to the post, the strategies likely to make mobile apps profitable include; customer orientation, experimenting and valuing. Combined with the right strategies, you will have a stronger chance at making your app both financially and socially lucrative.
Contact WebOConnect today for solutions on how your mobile app can generate revenue as soon as you’re ready to start making money.
FAQs:
Q1: How do you profit from a free application you are developing for a mobile platform?
A1: It is clear that advertisement banners are effective for free applications, as well as the freemium application model and purchasing applications at the application stores do not have negative effects on user retention.
Q2: What factors can help decide on the right monetization model?
A2: Check the relationship between the external and internal factors of your application type and the target audience. Try New App Revenue Strategies that can best meet clients’ needs while increasing users’ value.
Q3: Do in-app ads actually work in the sense of generating more revenue?
A3: Indeed, in-app ads are perfect for apps with a large number of hits. We also need to be very specific with what types of ads we use so as not to overcrowd users and potentially lead to uninstalls.
Q4: What strategies should be followed to get a freemium model right?
A4: Provide as many fundamental services that are useful for a user as possible for free while innovative services can be sold to make app more profitable.
Q5: What can I do to ensure users don’t uninstall due to other monetization techniques?
A5: Modify user experience avoiding intrusive advertisements, concentrate on reasonable paywalls, and providing an optimal split between the free and paid content.
Comments
That being said, it is somewhat difficult to make real money from a mobile application but if done correctly, the end product maybe a steady flow of cash. There are many Mobile App Monetization Techniques that can be used inclusive of in-app purchases and ads for the many types of applications, and the variety of users. The important thing to remember is that you have to select the right approach depending on your audience and the app’s features.
Below you will find an extensive tutorial on how to monetize mobile applications and which strategies are the most appropriate for developing a successful app and boosting its revenues.
Are you ready to begin your second Mobile app? Here are the best app developers to help us create your perfectly designed customized app. Contact us now!
1. Freemium Model
Freemium Model is considered to be one of the most common and successful App Revenue Models that can be used while remaining loyal to a large number of users. In this approach of monetization, users download and install a stripped down version of your application for free, with premium features, content or tools within the application bought for a fee.
- Benefits: Presents the downloadable version with the freeware and establishes a possible market base with enhanced editions.
- Best for: Utility applications, payapps, and applications that are specialized in one way or another, like sports monitors and so on.
With a freemium model, the more amount of people that install the app; the more chances are that they will purchase other services they consider to be useful.
2. In-App Advertising
In-app ads are by now a very popular method of monetizing mobile apps and can work for a huge number of apps, assuming your main functionality is not going to be paid. This approach includes several ad formats:
- Banner Ads: Small and requires no complicated interactive elements, and placed on the top or at the bottom of the screen.
- Interstitial Ads: Banners that cover the entire screen of a device and appear at logical breaks in gameplay, such as when a level is finished.
- Video Ads: Clip-like content, which may or may not be encryptable into the flow of application usage.
- Native Ads: Interstitial covers that look like natural parts of the application rather than advertisements.
- Benefits: It does not depend on people’s revenue to make revenues; it accommodates different types of applications.
- Best for: Free of charge applications, that are frequently (daily, several times a day) opened, used, engaged with for longer periods of time (i.e., games or social networking apps).
Indeed, the balance between ad format and frequency is tight, so the users should not get bored and uninstall the app.
3. In-App Purchases (IAPs)
In-app purchases are the options to purchase various items, improve functional characteristics of the app, or get the extra content within the app. It is one of the most effective ways of generating revenue in your mobile app particularly when the apps are in the game, lifestyle or utility domain.
- Consumable IAPs: Digital commodities that consumers can purchase again and again, goods in games such as extra lives or game coins.
- Non-Consumable IAPs: Including additional features, themes and customization, which can be purchased and activated only once.
- Subscriptions: Applications that send a subscription fee or a certain amount of money at regular time intervals to offer the client unique or ‘behind the pay-wall’ content.
- Benefits: Very adaptable and can be offered at various prices which are desirable for a large number of consumers.
- Best for: Games, health and fitness, or educational purposes or any other application that can offer a diverse element of entertainment or service on a daily basic with post ENGAGEMENT of users.
IAPs are some of the most effective techniques of monetizing applications that have real utility, through the provision of in-app digital goods and services.
4. Subscription Model
The subscription based model is one which offers the guarantee of constant, continuous, and constant income derived from the frequent collection of payments from users for special products or services. This app revenue model is most suitable for the content-based app where the application provides weekly, monthly or yearly subscriptions.
- Benefits: Develops a predictable income and prolongs user retention, which helps avoid problems associated with rapid turnover of clients.
- Best for: Applications in use for media consumption or health, education or productivity which requires update information or content.
Subscriptions prompt constant activity, and this is not a secret that users are in a better position to renew subscription in case they are active and continue to find value.
5. Paid Apps
Paid apps demand user’s money right from the start, before the person can download the app or use it at all. While this approach is slowly fading away due to the rise of free downloadable apps, it is best applicable for apps with innovative and high quality for which people are willing to pay dollars.
- Benefits: Gives an instant source of revenue per individual download, and does not require using ads, or purchases.
- Best for: Localized, special purpose market producing abundantly valuable apps, for instance, practical utilities or paid games.
Also remember that with a paid app you will have to focus more on marketing the app because the users won’t be able to try it for free for a week or so.
6. Sponsorships and Partnerships
Sponsorships are where the business partners with brands that seek to access your application’s users. To put it in a simple manner you get paid for allowing people who want to advertise their brand. This can be with the help of creation of the branded content, native advertising or the product integration into the application.
- Benefits: Enables opportunities to make money in innovation that do not including affect the use by consumers.
- Best for: Apps that have a loyal and small, yet an active and well-defined target market that includes health, fitness, and travel apps.
These areas can generate a good deal of sponsorship revenue while presenting users with material that is interesting and valuable or that they need.
See Also: Wonderful Tips to Design an Excellent Landing Page
Looking for ways to advance your Mobile application development? We have expert app developers who will ensure that your app suits your needs as you need it. Get started with us now!
Conclusion
However, when choosing the right model of app monetization, one has to consider the audience and the type of application. You can choose one or two methods first, and observe the response rate of the audience to the content you share, and how the increased amount of shared content affects the response rate of the audience. Such an approach can leverage several methods at once ensuring the highest revenues with an employee or client’s satisfaction.
According to the post, the strategies likely to make mobile apps profitable include; customer orientation, experimenting and valuing. Combined with the right strategies, you will have a stronger chance at making your app both financially and socially lucrative.
Contact WebOConnect today for solutions on how your mobile app can generate revenue as soon as you’re ready to start making money.
FAQs:
Q1: How do you profit from a free application you are developing for a mobile platform?
A1: It is clear that advertisement banners are effective for free applications, as well as the freemium application model and purchasing applications at the application stores do not have negative effects on user retention.
Q2: What factors can help decide on the right monetization model?
A2: Check the relationship between the external and internal factors of your application type and the target audience. Try New App Revenue Strategies that can best meet clients’ needs while increasing users’ value.
Q3: Do in-app ads actually work in the sense of generating more revenue?
A3: Indeed, in-app ads are perfect for apps with a large number of hits. We also need to be very specific with what types of ads we use so as not to overcrowd users and potentially lead to uninstalls.
Q4: What strategies should be followed to get a freemium model right?
A4: Provide as many fundamental services that are useful for a user as possible for free while innovative services can be sold to make app more profitable.
Q5: What can I do to ensure users don’t uninstall due to other monetization techniques?
A5: Modify user experience avoiding intrusive advertisements, concentrate on reasonable paywalls, and providing an optimal split between the free and paid content.
