Mobile applications have proved to be beneficial for both businesses and users in various ways, and now life cannot be imagined without these powerful tools. As mobile apps have made our lives convenient, it’s high time that you should start investing in a mobile app development company. In this article, we will be focusing on making you aware of how you can make money from your mobile app. Here’s the ultimate mobile app monetization guide for 2021.
What is Mobile App Monetization?
Mobile app monetization is the process of engaging the app’s users and encouraging them to buy your application’s services. It is a methodology that defines how your app will generate revenue and ROI.
People come up with new and unique ideas and think of all aspects of mobile app development, however, they often get confused about how to make money.
You may consult with a mobile app development company and the professionals will suggest ways to make money from your awesome mobile app.
Types Mobile App Monetization Strategies
Direct monetization helps you earn money directly from the mobile app. For instance, when a mobile app user downloads and installs the app from Play Store or App Store and makes in-app purchases, the revenue is generated directly from your app. Direct monetization helps you earn money when you implement an app monetization model.
Indirect app monetization is common amongst mobile application products. One of the best examples of indirect monetization is digital apps that are displayed within free apps. In this case, the app is secondary, and it will generate money regardless of the app usage. This is an effective way to generate revenue from a mobile app and make your mobile app look attractive with an enhanced user experience for potential users.
Why is Mobile App Monetization Important?
Whether you invest in iOS or Android app development services, mobile app monetization is crucial because generally, people look for apps that are free at the point of install. Therefore, the app business model should be redesigned to account for this.
Mobile app owners need to shift their revenue model to make money after the app download. They need to build effective strategies to maximize profits. Here are some of the reasons why app monetization strategy is important.
- Your mobile app will be generating growing revenue
- You can keep your app users and user experience relatively together.
Many people tend to overlook the second point. It is also important to consider how mobile app monetization affects the user experience.
Mobile App Monetization Strategies
Whether you’re involved in iOS and Android app development services, building a proper app monetization strategy is crucial for maximizing your profits. Below are some of the ways you can monetize your app.
1. In-app Purchases
This is one of the widely used mobile app monetization strategies that include both free and paid apps. This framework allows users to buy various digital products For instance, users playing a gaming app are likely to invest money to gain access to premium features, unlock levels, get more coins, etc.
So, you must make sure that the free version is very effective and working. Besides, in-app purchases should be used only for enhancing user experience.
2. Sponsorship Model
The sponsorship model can help you boost your profit-earning significantly. In this model, the first step involves finding the right partner with a similar user base that can enhance the experience and add value to your app.
Collaborations can give a good boost to your business, especially when you build a reasonable experience by taking into account the enhancements and logistics together to deliver mobile analytics.
Here, brands with a similar user base pay you a notable and unique place in your mobile app and market content related to it. This increases user engagement and retention rates, helping you boost revenue by taking your share from the redeemed rewards that these brands provide your user through in-app activities.
This model is one of the most effective mobile app monetization strategies as it improves the interaction between users and advertisers through mobile apps. Usually, there are three types of ads that marketers create:
Videos ads have online advertisements with embedded videos. Most video ads are purchased, sold, and displayed by using various engagement elements and targeting approaches.
These are pop-up ads and can make users aware of such mobile apps. They can be quite invasive, however, they are very effective.
These are online ads that are generally found on the top or bottom of the app screen. They can unquestionably upset the users as they can be more intrusive than other ads.
These ads, known as full-screen ads, are displayed in the application’s flow moving through the menu.
4. SMS and Newsletters
This mobile app monetization strategy is one of the best ways to connect with your target audience by consistently sending reminders and alerts on special discounts, promotions, contests, etc. SMS increases user engagement rate and compels users to check out your app.
5. Ecommerce App Model
The eCommerce app model is one of the great ways to monetize your app as it allows you to sell your products online through your app. Building an eCommerce app that focuses on the eCommerce models and strategies that blend with content-driven generates better profit margins.
Ecommerce stores have transformed the way how customers used to shop earlier. If you deliver an exceptional buying experience to your customers than physical stores, they will often visit your online store.
6. Subscription-based Model
This mobile app monetization strategy renders paid content and encourages users to use enhanced features integrated with the app. This model compels users to pay a subscription fee to access your app’s content.
This model is highly recommended for those who have invested in native mobile app development.
This is a combination of free and premium versions. Freemium apps provide users with access to additional features in the app. This model applies in-app purchases that generate regular business revenues and cost nothing.
This is a direct way of making money from your app with each install or subscription. This mobile app monetization model involves building your app’s different versions with an enhanced user experience.
The mobile app development industry is growing constantly and there is no sign of slowing down in the future. With billions of smartphone users across the globe, businesses and individuals should consider investing in a mobile app development company.
Whether it is Android or iPhone app development services that you’re investing in, you consult with a mobile app development company to choose the best mobile app monetization strategy for your mobile application.
Book a consultation session with us today and get the best guidance for your app!
Frequently Asked Questions
1. What are the best app monetization platforms?
Here are the best platforms for app monetization:
- Google AdMob
- Unity Ads
- Facebook Audience Network
2. How do I improve app monetization?
You can improve your mobile app monetization strategy by following the below-given tactics:
- Track user engagement
- Build your community
- Offer discounts to loyal customers
- Design a dynamic pricing model
- Include a subscription-based model
3. I need help in choosing the best app monetization model. Can you help?
Yes, of course. As a full-service mobile app development company, we not only offer iOS/Android app development services but also guide our clients to choose the best monetization strategy for their mobile apps.
Have More Questions? Do Not Hesitate to Ask Our Mobile App Experts Right Away!