A brilliant idea can drive growth for your business in many ways. One of them is developing a user-friendly app based on this idea. You can consult a reputed mobile app development company and transform your innovative idea into a stunning app. However, it is imperative to generate revenue to get a high ROI from your app development investment. Whether you hire mobile app developers or assign your project to a development company, your app should capable of generating income over the period.
In this blog, we will discuss the ways through which you can generate revenue from your feature-rich mobile app. It is known as app development monetization strategies. Let’s understand this concept before moving to the ways for generating income from the customized application.
As the name suggests, mobile app monetization is a process to monetizing or generating revenue from a tailored mobile application. Many mobile apps show advertisements or offer in-app purchases. These are some highly popular app development monetization strategies. When you get an advanced app with desired features from the best app development services provider, you can consider monetizing it. App monetization is essential for maintaining its performance and opening a new source of income.
Whether it is Google Play Store or Apple App Store, millions of apps are available for download these days. As per the recent report of January 2024, Google Play Store has nearly 2.4 million apps available and Apple App Store has around 1.8 million apps available for download.
Number of Apps Available for Download on Google Play Store
Image Source : statista
Number of Apps Available for Download on Apple App Store
Image Source : statista
Talking about the downloads, the approximate annual number of global app downloads given by Statista is 299 million in the year 2023. However, all apps are not capable of generating revenue. This is a reason, the average app can generate revenue of only $1.79. This fact shows the importance of a proper app monetization strategy.
Image Source- Statista
Moreover, both app stores witness a paradigm shift from paid to free apps in recent years. This shift compels app developers and owners to come up with smart ways to generate more revenue. Here we mention some useful mobile app monetization models that you can use while maintaining a pleasant user experience.
Before moving ahead, it is important to keep in mind that there is no definite answer to how much money an app owner can make from a mobile app. However, these strategies will help you make more money for sure. Let’s dig in.
Statista has predicted that by the end of 2024, the global spending on mobile advertising will reach around 399.6 billion. In-app ads enable you to promote affiliate products inside the app and if users interact with these ads, you get paid. Cost per click, cost per install, and cost per view are three popular campaigns in this model. Networks like AdMob and Flurry can assist you to make money from apps using insideads.
A mobile app development services provider can integrate native ads into the app in a way that these ads create minimal disruption. Native ads can gain the highest engagement and CTR (Click-through Rates). Its proper implementation can improve user experience in the mobile app and end users prefer it for purchasing products. However, it is difficult to make such native ads personalized in line with the demographics and target audience.
These ads can be a great alternative of in-app ads. Banner ads have some size restrictions and they remain intrusive for the end users. Unlike such ads, interstitial ads can cover the entire screen and remain at natural transition points of the app. For example, when one level in a gaming app is completed, an interstitial ad can come. These ads offer high user engagement and CTR rates. However, improper implementation can cause a problem in user experience.
This is one of the most common ways to generate revenue from the app. Owners of gaming and scoial apps use this approach successfully. In-app purchases (IAPs) can be made from within free mobile apps directly. They are useful for accessing exclusive content or extra features. In other words, in-app purchase is useful to sell virutal items related to the app from the app, Clash of Clans and PUBG like games have improved user exprience by using this approach.
Both premium and freemium versions have distinct advantages. Once users download a free app, it offers in-app purchases for having exclusive access to premium features and other improvements. Spotify is an excellent example of a freemium version. Freemium is a scalable model with a wider user base. On the other hand, the premium mobile apps work on subscription medels. Users need to pay a fix fee immedately upon downloading the premium app to get registered. Premium apps have a reliable income stream with a higher longevity.
Some of the software giants like Google and Apple run afiliate programs for app developers. These programs include the promotion of other mobile apps within the app. Though this app monetization strategy is not much profitable, it gives developers the choice of apps that can ultimately encourage user to associate with similar brands as that of the app they use. Affilliate marketing offers are also useful in building brand relationships.
As per an official survey, 79 percent of millennials in the USA prefer to get contacted by brands via emails. Though email marketing may look irrelevant for promoting your app and generating revenue, it can engage existing app users easily. Email can speed up the buying process and remain cost-efficiency. Moreover, email marketing is relatively easy and does not need any technical knowledge to manage and control. It can be a useful tool for app monetization.
It is one of the most lucrative monetization models. It needs a mobile app with excellent features, seamless performance, and a large number of users. It can earn you a sponsor compnay and you can offer them to use an app for improving their brand. The sponsorship ads can be of two types- either you can ask for a part in the sponsor’s revenue or a fixed monthly sponsorship fee. However, it is fair to mention that finding a sponsor is a herculean task.
If you think SMS is dead, here is an outcome of a survey done in the US. As per this survey, as many as 47 percent of respondents prefer text message as an effective medium for being contacted. However, it is necessary to ensure that the people whom you are sending text messages have given you consent to use their data. Moreover, the length of the message and time need some consideration before initiating SMS marketing campaign for monetizing app.
These days, crowdfunding is in vogue. You can use funds in multiple ways after a successful crowdfunding campaign. It may be development, testing of a particular feature, or developing a specific version of your app. All you need to post an app on one of the top crowdfunding platforms with an excellent presentation and promising outlook for the future to attract angel investors or people. Pitching of your app plays a crucial role in the crowdfunding campaign.
Other revenue-generation models include subscription and one-time purchase. A reputed mobile app development company can suggest hybrid model for app monetization. It involves more than one strategies for monetizing your app and get benefits based on features, target audience, trends, and other ncessary factors.
Monetizing your mobile app is imperative, given the substantial investment involved in its development, testing, launch, and maintenance. App monetization can generate revenue and ensure a high return on investment (ROI). Let’s discuss some of its key benefits.
Generating revenue is a major advantage. You can choose the approach that best aligns with your app’s goals and target audience for increasing your ROI. Additionally, monetization can provide you with the resources needed to invest in enhancing your app’s features and functionality. This improvement can lead to increased user engagement, retention, and ultimately, more revenue.
Furthermore, app monetization enables you to offer your app for free, attracting a larger user base and increasing its popularity and success. Offering a free app removes the barrier for users to try it out. It can increase the number of downloads and user acquisition. It reflect in higher app store rankings and visibility.
Even if you have got a right suggestion for a specific monetization strategy, it is essential to follow the best practices for effective app monetization. Here we give three standard practices you can follow-
This is a highly important factor and app developers need to invest in user acquisition. For example, addition of new users should continue to survive and thrive in a highly competitive app market. Therefore, app developers and owners need to put effort in increasing the number of users who can keep the app in their smartphones for long time.
It is one of the most effective approaches for optimizing app monetization. Best mobile app developers may have a partnership with an app monetization platform. They can receive reliable and real-time insights including the user behavior, demography, and revenue. Analysis of this data can help companies generate more revenue over the period.
Most app owners take this approach for generating revenue from apps. This approach can act as a hedge against limitations of any one strategy implemented. However, it is better to consult a reputed mobile app development company before selecting multiple monetization approaches for your app.
Once you have identified and implemented app monetization strategies, these best practices can help you make the most of them.
Mobile app monetization offers many benefits to companies including a reliable source of income. Hope this comprehensive guide to the top app monetization strategy and best practices will help you get revenue from your mobile application. All you need to consider various aspects and recognize the value of your app. It is always beneficial to consult such companies before making any decision related to these strategies.
Silicon IT Hub is a preferred mobile app development company in the USA and India. Our in-house teams of Android and iOS app developers offer best app development services at reasonable rates. Want to know more about our array of mobile app and web development services? Send us an email at [email protected] and one of our expert business consultants will contact you soon.
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