How to monetize an app the lucrative way?
If you’re a publisher, you know that there’s money to be made in the app market. But what are the best ways to monetize your app and maximize profits? In this blog post, we’ll take a look at some popular app monetization hacks and show you how to make more money from your mobile app. So without further ado, let’s get started!
1. Enable In-App Advertising
The most obvious app monetization strategy is including ads in your app.
Advertisers are spending lots of money to purchase app ad inventory to make use of the advantage that consumers are on their phones all the time. Digital advertising through mobile apps has proved to be even more profitable since the pandemic due to people’s phone addiction.
The majority of consumers stay away from downloading apps for a certain amount when there are tonnes of free alternatives to that app’s niche. This is why you need to keep your app free and make use of in-app advertising.
Here are a few ad formats that you can use:
– Interstitial ads: Full-screen ads placed at organic pause points, like when scrolling through social media stories. They have more impact on garnering user attention & interest thus boosting CTRs.
– Banner ads: App banner ads are placed at the top or bottom of the screen. This ad format needs to be implemented the right way or else it’s ineffective as they can obstruct UX.
– Advanced Overlay: Similar to interstitial ads, advanced overlay ads use transition points as well but they are more interactive which helps in improving engagement and clicks.
– Notification ads: Notification ads pop up in the mobile’s status bar and are more viewable. Despite their popularity, these are not the most well-liked ads, so try this ad format at your own risk.
The better the user experience, the higher the clicks and engagement, so always go for ad formats that will not obstruct UX & boost CTRs.
2. Email Lists
You’re missing out on extra app revenue if your app doesn’t have an email subscription form? Email marketing campaigns and newsletters are a guaranteed way to make users engage with your content & keep coming back for more.
An email marketing tie-in with your app is a surefire way to improve user retention making them more likely to convert in the long run.
Adding an incentive in the in-app subscription form is a good trick many app developers and publishers use to tempt them. Provide an access code that users can enter inside the app if there are promotions or deals.
So, if you want to entice new users to download your app after being away for a while or reminders to remind users to return, email lists are marketing gold.
3. Sponsors & partnerships with brands for paid ad placements
Partnering with other brands can take your app monetization to the next level. For example, Starbucks and Spotify’s partnership that included incentives for both app’s users was a huge hit.
Your goal should be to find a partner with a similar customer base that can offer something to your users.
Users on other apps that may come across your brand logo with your app’s link may be enticed to download your app.
If your partner posts ads that feature your apps, there’s a chance their users will click on those ads and go straight to your app. This is why it’s always a good idea to try out partnerships to bolster your brand outreach.
4. In-App Purchases
Even though most app downloads are free, that does not mean users may or may not buy anything after downloading the app. This is where in-app purchases come into play.
With in-app purchases, it is easy to maximize your profits from your otherwise free app while allowing consumers to engage and purchase products within the app.
In-app purchases are widely used in ‘freemium’ apps like gaming apps where users pay for gated features but they don’t need to pay any upfront costs. If the in-app purchase is a service, users can go with in-app billing while physical products can be purchased directly from the app.
Developers must balance giving too many options for free and offering too few features with in-app purchases. It’s all about hitting the sweet spot for maximum app revenue profits.
5. Freemium/Premium Versions
Freemium apps are free to download initially, but these apps include in-app purchases through which the app developer makes money. However, there’s a third way to generate revenue – creating a completely separate app with features that extend or add to the user experience. Think of the free app as a teaser or lead magnet that can entice users to purchase a service or product from the main app version.
Once the free version of the app shows the users your app’s potential & value, they’ll realize the need to pay the price for the main version of the app. If your app is worth sticking around with, they may be interested in
getting the premium version. As a developer, your job is to make sure your premium app is worth the money it costs to users if they pay for it. This will get your app solid testimonials & recommendations driving even more downloads.
6. App Subscription Services
For publishers & app developers who regularly create & update their content, creating a subscription service is another bonus tip to make more money. Think of subscriptions as your own Patreon platform where your user base can subscribe to unleash exclusive content for a certain amount. You can bill them monthly or quarterly depending on the engagement & retention. While utilizing the subscription service option, differentiate between tiers (starter, professional, premium) of content accessibility on your website.
For Instance: Digiday lets its readers opt for both web-only subscriptions and print-only subscriptions. Once your users see the real value in accessing both web and print subscriptions, they won’t back down from paying for the subscription.
Consider offering separate subscription options and a package combining all services into one subscription package to make your app monetization strategy 10X more profitable.
7. Data-Driven Strategies
Data-driven strategies involve collecting and analyzing user behavior data, studying your KPIs, and putting those insights into your next strategy to make more money from your app.
You can use all this data to measure who spends the most time and money using your app and put your attention on them rather than spending all your development resources on acquiring new users. A lot of developers spend
heaps of money on user acquisition but the guarantee of them sticking around, in the long run, is quite low. Those new users you acquire may not engage beyond downloading the app.
You gain knowledge that can help you further optimize the user experience when you have the capability of learning why users abandon your app soon after registering and then comparing their behavior with your loyal user base.
In order to get the best return from your marketing efforts, you should always know which monetization strategy brings in the most ROI from your target audience. If your app’s user base skyrockets, analytics companies will be headed right to your inbox to buy all that data.
User behavioral data is the secret source to boosting your app revenue & holds value outside your content. As long as you continue to pursue these efforts, your app will prove more beneficial to your customers (and your business!) in the future.
Choosing the right App Monetization Partner
A tonne of adtech companies offer app monetization services, but most of them over-promise more than they deliver.
Look for the following before partnering with one:
– Utilizes Google AdExchange with app mediation to scale app revenue – Gets you the highest bid with 30+ major ad networks for optimal distribution of your ads
– More app revenue streams by integrating innovative ad formats like interstitial, rich media, & rewarded ads seamlessly.
This is why you need to go for reliable app monetization partners like MonetizeMore that are backed up by 1000+ publishers.
Written by Aleesha Jacob