A Guide To Mobile App Monetization
/So finally, you've made it, you’ve created an excellent app, and you are ready to publish it any minute or have already done it.
You may know of someone who wants to build an app, but uncertainty holds them back. Some are hesitant to take the plunge due to the uncertainty of financial returns.
We see tons of questions asked daily regarding mobile app monetization on different media platforms. One of the best articles on this topic I've seen is a guide on mobile app monetization, written by Topflightapps. There are many ways to monetize your app and earn some good money out of it. Remember, however, that free apps have more reach and downloads than the paid ones, so choose wisely what you want your app to become.
To get started, let’s take a quick look at what app monetization is.
What is Mobile App Monetization?
Mobile app monetization is a way of generating revenue from your app. Through it, developers are able to earn money from their efforts. Some popular app monetization methods are in-app advertising, freemium model, free trial, in-app purchases, etc. These methods can help you earn money through your app.
4 Ways To Monetize An App
Now, let’s take a look at the best ways to monetize your app and earn money from it.
1. In-App Advertising
In-app advertising is a proven monetization strategy. Users actively install free apps on their mobile phones and publishers or developers make money by displaying ads in their apps. App users then view personalized ads based on the cookies stored, which helps the advertising company show targeted ads to their audience. For example, Facebook ads are displayed based on relevance to users.
These are different types of mobile ads. Examples include Banner, Interstitial, Video, and Native ads.
Pros:
● The rate of download is higher when the app is free
● Can be used for proving target audience and testing the initial strategy
Cons:
● Some customers prefer not to view ads displayed via apps
● If the user activates an ad-blocker, profit can reduce substantially
Apart from the different ad formats (video ads, interstitial ads, native ads, banner ads, pop-ups, etc.), shapes and sizes also command varying revenue. Some of them you'll find below:
● CPC (Cost Per Click)
● CPI (Cost Per Install)
● CPA (Cost Per Action)
● CPM (Cost Per Mile)
● CPV (Cost Per View)
2. Freemium Model
A freemium app means "free + premium", which makes it a good strategy. With the freemium approach, the application is free to download and use up to the basic version, but if you need full functionality, you will have to purchase it.
There are many examples of freemium apps in the market right now, like Angry Birds, Candy Crush Saga, and more. These apps are free, but to access advanced features and customization, you will need to pay.
Pros:
● This model attracts many users who are willing to pay for the extra features.
Cons:
● Some users may abandon the app if asked to pay for features.
● You may not generate significant revenue as not everyone will be willing to pay.
3. Free Trial
The free trial monetization approach is the most popular among these strategies. With this method, the user gets access to all the premium features for basically 30 days or one week. After this time is over, they need to purchase the app to access it any further.
This strategy creates addiction in some users who start to love the app, and in the end, they purchase it for permanent access.
Pros:
● The free trial period gives users time to interact with the app and pay if they love it.
● A free trial is beneficial to getting a solid experience of how an app functions.
Cons:
● The publisher requires a point at which to convince users to purchase the app.
4. In-App Purchases
In-App purchases are a perfect monetization strategy for game publishers. You let users play the game for free and enjoy every feature, but you also provide additional items in-store to purchase. For example, Gems, Coins, Guns, Skins, etc.
Conclusion
In conclusion, I would say that users love free apps compared to paid apps. You will see more downloads for free apps in comparison to paid ones. Apart from that, bear in mind that you should also consider user experience when selecting a monetization strategy.
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