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October 4, 2024Mobile App Monetization Strategies to Start Right Away [8 Effective Tips]
Apps serve two key purposes for publishers. The first is to promote your content and app to a wider audience and gain recognition, and the second is to bring in revenue. When you emphasize the first reason, the second part comes naturally. Most publishers who focus more on revenue end up in a sticky situation, which you do not want.
Your app can generate revenue in several ways, but which method best suits your content, motive, and audience? Different kinds of apps require different monetization options. A gaming app, for instance, is not the same as a finance app, so both would require different monetization strategies. So, you must plan out your monetization strategy effectively before applying them all.
Figuring out the right combination is one important part of trial and error, but at least the research process helps you achieve that level of success. It is important to keep in mind that it is best recommended to work with an efficient agency and a team of designers and developers to build our mobile app from scratch and deliver a custom app. This also speeds up the process and reduces any possibilities of bugs or glitches.
What is Mobile App Monetization?
Mobile app monetization is the method of generating income from a mobile application. Monetization can be done in different ways, such as in-app purchases, advertising, subscriptions, and premium versions. It is important not to simply slap all these monetization methods onto your mobile application but instead effectively use the right methods that best suit you and the kind of app you have developed.
Certain factors must be considered before you choose a monetization method. These include the app’s target audience, the features your mobile app possesses, and the value proposition. While a few apps may be well-suited for in-app purchases, others could benefit more from a subscription model instead. Most importantly, the best monetization method will depend on the characteristics of the app and the goals of the developer.
Read more: User-Centered Design in Mobile App Development.
8 Effective Ways to Successful Mobile App Monetization
Here, we will cover the most effective ways to monetize your mobile application. You can always consult professionals to see what kind of monetization strategy would best suit your mobile app and its target audience.
1. In-app Purchases
This is one of the most commonly used monetization methods for several kinds of mobile apps. Gaming apps are known to use this method the most because many gamers love to purchase limited editions, unlock new features and characters, and more. This is just one example of the many kinds of apps that include this.
In-app purchases can also deliver extra content virtual goods and unlock special editions. This monetization method is the most commonly used strategy that works, but it also depends on how convinced the feature or element the audience finds worth buying. Some could mindlessly buy features on the app, while others would not fall for the “trick.”
For example, there are two versions on Spotify: the freemium version (we will learn more about this later) and the premium version (you will learn about this later, too). While people still use the free version of Spotify, there are some fun social features that you can unlock with the premium version. For example, Spotify judges you based on the songs you listen to, so it labels an “album” custom for you only. People loved this approach, and this strategy is one thing that made users buy the app so they can be judged by the app as well.
Pretty crazy, but a monetization strategy it is.
2. Adverts
Displaying ads on the app as banners either on the top or bottom (mostly preferred). More ways of doing this are short videos and pop-up ads. Here is the thing about ads: you need to be very careful where, when, and how you place them.
For example, if someone is on a gaming app and wants to unlock something but has to watch a video in order to unlock it, of course, they would not mind watching a 30-second video for it. But, if someone is on a music app and they are streaming on it, during the songs, an ad pops up. That would be annoying, and the app would immediately be uninstalled (this is based on several true stories)
Adverts do gain recognition, but it depends on the kind of app you use this strategy on.
3. Subscriptions
Subscription services are a simple yet effective monetization method for increasing revenue. Here, you leave the user with more of an open hand and less of it being forced. However, if the offer is so tempting that it would be otherwise, this monetization method usually works on video streaming apps and entertainment apps.
For example, YouTube has a subscription service where users can unsubscribe whenever they want to. There is no hard and fast rule, making users feel they have the upper hand.
More for you: Best Education Apps for School [Top 10 Picks]
4. Affiliate Marketing Methods
You can partner with other apps, businesses, or even influencers to promote your mobile app and the products and services you offer. Try grabbing hold of those businesses or influencers related to the same field. For example, if your mobile app is about self-care and sleep, you would want to affiliate your app with an ASMR influencer or artist who will promote your app in their videos. It would just make more sense as compared to parking up with something not related to your domain.
You can earn revenue and extra commission for each sale through those links. This monetization method creates a win-win situation for you and those affiliated with your app.
5. Premium Versions
Offering premium versions of your app is one sneaky way of giving those who want to gain the most out of the app the most advantages. While not all users will fall for this, the majority do. We will use the same example of Spotify. This app has both free and paid versions. With the paid version, they offer more benefits and perks for users while making sure that the free version is not too neglected and that users don’t want to navigate the app at all.
While apps have versions, not all apps can do this. For example, a gaming app would have in-app purchases; it cannot have a free or paid version, which would not make sense. An entertainment app, however, can apply this monetization method. Users can stream series and shows, but if they want to stream without the disturbance of ads, they can pay, making it the premium version.
Discover more: What is Mobile Analytics? Get the Best Insights.
6. Freemium Versions
Unlike the premium versions, freemium versions are also a great way to slowly make users review what more potential and possibilities they can gain from the app without completely restricting it. Apps that are completely restricted are not liked at all unless there is some personal membership or so. However, free versions of apps allow users to get a chance to see and explore the app. So when they see and use what they like, they will probably buy it later.
This is where human psychology comes into play because this is what a free version does with users. While this is not always true, it is usually true. If there is a free version, sometime later, users will be curious to check out the premium version and stick with it.
7. Sponsorship
You can get sponsored by partnering with different brands for your app. This sponsorship can take the form of articles or certain products. This monetization method heavily depends on the kind of mobile app you have designed since it does not work with all kinds of apps.
For example, an ASMRtist would certainly sponsor your app if it promotes well-being and sleep and provides comfort services. So, this monetization method is very specific to your app’s field.
8. Data Monetization Method
Lastly, this is a monetization method where users analyze and collect data to gain insights into market trends. Usually, app owners hire data analysts to help them achieve this step and understand user behavior and trends.
For example, if you gain insights about your app and how many times it has been used in a month or notice the usage drop-down, you can further learn how to improve this. Or see what is in the market. Is there another competitor app on the rise? These are the kinds of questions data monetization can help you answer.
Learn more: Everything You Need to Know About Mobile App Quality Assurance.
Monetize Your App with Appsleageus
While app monetization strategies are prevalent, not all strategies work for you. Experts can help you discover the right mobile app monetization tactics for your app. With Appsleagues, our seasoned app designers and developers can help guide you with the right monetization method and spot-on opportunities for success. If you are ready to gain revenue-driven results and extra dough through your app, hiring our services can help you achieve your goal.