By app monetization, we basically mean utilising the available user base to generate money through app usages. Owing to the increase in smartphone users across the globe, the demands for app development has also grown up exponentially. Now to keep pace with the competitive market companies are adopting ways to make apps popular and successful. In order to do this, in today’s market, you need to come up with engaging apps for your target users. The next vital step would be to generate revenue using a suitable app monetization technique.
There are different approaches through which you can achieve this-advertising, paid apps, in-app purchases etc. This post can give you significant insights on whether you are monetizing app for the first time or trying to optimize the revenue of an already popular app. After going through this blog post you will have a strong idea about any specific strategy or a blend of strategies that can boost your app’s financial value.
Now let us go deep into how to build an app with proper monetization opportunities
Paid Apps : Paying upfront for app downloads is regarded as the most straightforward and oldest technique for app monetization. Here you just need to determine a price which can be collected once your selected app store/stores have/has the share. To make the paid apps popular they need to demonstrate measurable benefits for the target users/customers. You need to perform a competitor analysis and see the standard prices for your app category in order to start with a paid app monetization strategy. You have to evaluate the app download analytics to check price optimization so that you can maintain a balance between the customers’ payment and your business revenue target.
In-App Advertising : This is another prime factor which an app development company takes into consideration to make apps profitable. In-app advertising is highly versatile. To prevent any disruption with respect to user experience, a wide variety of ad formats can be used to accommodate user experience in a customised way.
Also, ads can enable apps to remain free so that scaling audience becomes easy as there is no cost involved in downloading. In this technique, the advertisers can avail advanced targeting options through which they can pay any amount to reach the desired audiences quickly.
All these reasons are implicable of the fact that mobile advertising has become the leading form as far as adverting is concerned. Advertisers tend to spend more on mobile devices as they can reach out to a large section of the prospects through this medium. It is expected that in 2022 mobile advertising will exceed other forms like tv, print, radio and desktops.
In the year 2018, the revenue of mobile ad spending globally was 180 billion dollars which expectedly rose to 217 billion dollars in 2019. Thus this strategy is considered worthy as a means for in-app monetization.
There are different ad formats such as- interstitial, classic banner ad, native advertising, medium rectangle etc. Banner ads are commonly used as they are reliable and simple and also works well across all app categories.
In-App Purchases : A popular mobile app development company focuses on this technique to create apps that are capable of yielding good money for the business. Apart from charging upfront for your apps, there are still ways through which you can charge your users in the future. In-app purchase model has been found to be popular in games majorly but can also be used for dating apps and other categories which involve frequent textual or verbal communication.
Both users and app publishers can come to a win-win situation if this strategy is implemented rightly. With freemium apps becoming the new standard in app stores, the in-app purchase model has gained prominence. With the increasing popularity of this monetization strategy, it has been predicted that by 2020 revenue from in-app purchases can become double and reach to 71 billion dollars compared to 2018.
Some of the common types in in-app purchases are-new filters, virtual currency, extra lives, additional levels etc.
Subscriptions : This is another prominent app monetization strategy which is adopted by a renowned mobile app development company to make apps stand out. To incorporate a suitable subscription model for your app you need to have thorough knowledge about your users and their usage patterns. Providing the desired solutions and charging the appropriate price based on monthly or yearly usage patterns you can make this technique successful.
This is a steady recurring revenue model where payment comes on a per-use basis. The content and features of the app are to be projected in a beneficial way so that the users can find it valuable in availing their highly anticipated services.
Why It Is Crucial to Monetize Your Apps
From the above discussion, it becomes quite evident that mobile apps can be a strong source of income generation. Globally the overall number of app users has exceeded by 5 billion and its number is still increasing. It has been predicted by 2023 the worldwide mobile app revenue can reach 935.2 billion dollars from 97.7 billion dollars in 2014.
This proves that mobile apps can be a strong medium to increase business revenues using various forms of monetization strategies.
Conclusion : This post gives you a fair idea about how to build an app with suitable monetization techniques. If you wish to boost your business revenue do not hesitate to get in touch with us as we have been successful in guiding start-ups to Fortune 500 companies in optimizing their app revenues to gain a competitive advantage.