These days, there is a fundamental shift in the way users consume content. Users are moving on from using mobile browsers to using apps that excel at specific functionalities along different verticals. This change enables developers to explore different monetization strategies. Developers who keep evolving and adapt to the best practices are sure to tap into this rapidly growing revenue stream.
The latest predictions by eMarketer state that mobile ad spend is set to surpass all traditional media in 2020, indicating steady growth in the foreseeable future. For developers, this means that new opportunities are opening up for you to monetize your apps. At the same time, mobile app developers need to integrate many skills to suit the needs of their customers.
Tips To Maximize Your App Revenue
Apps provide different ways of earning revenue which include selling ad spaces, providing premium versions and monthly or yearly subscriptions. Regardless of your monetizing strategy, you will need users to actually make money with your app. Let’s have a look at some of the things to keep in mind for maximizing profit.
1)Build a Scalable App
It is essential for every developer to scale their app to create more room for growth. Scaling an app not only fixes the problems with the app but also increases the chances of generating higher ROI.
Scaling allows the developers to handle a growing number of users and also makes the app more reliable to handle larger marketing campaigns.
2)Develop An App Monetization Strategy
Choosing an app monetizing strategy is actually deciding how you are going to make money from your app.While there are many monetizing strategies to choose from make sure to use the one that best fits your app and does not bother your users.
Following are the most prevalent monetizing strategies:
- Paid Apps – apps that require one-time payment to download.
- In-app Purchases- apps that are usually free, but include additional features that are available for purchase.
- In-app Ads – Apps that display ads to earn money
- Freemium – This is quite a popular strategy in which downloading the app is free but in order to use additional features of the premium app, you need to pay a subscription fee or one-time payment.
- Subscription – To use the app user need to pay a monthly or yearly fee.
An increasing number of developers prefer monetizing with in-app purchases and some opt for both in-app ads and in-app purchases. You should choose your monetizing model depending upon your App’s functionality. With the right strategy in place, you will surely grow revenue and your App’s value.
3) Use Social Media For App Promotion
Social media is a powerful way to promote your app and also engage with your potential users and audience in a meaningful way. When you focus on developing a strong social media strategy it results in a strong digital presence through community sharing and recommendations.
It is extremely important to identify the benefits of different social media platforms and develop your strategy accordingly for each one of them. There are various ways of doing this :
You can use paid ads on social media
Influencer marketing helps you to present your app to an already engaged and receptive user base.
You can seek reviews and ratings on social media, ask for feedback from people to identify user’s needs.
User-generated content can create traction for your app because it is considered more genuine. This can persuasively illustrate your app’s value and what are its practical benefits are.
4) Deploy cross-promotion
Another innovative way of promoting your app is cross-platform promotion it enables you to promote your app with another already existing app.
Let’s say you already have an app with a fair amount of user base, you can take advantage of the existing user base of that app to advertise your new app and grow revenue and recognition.
But you need to do this smartly because both of the apps might not have the same user base which is why you should segment the user base and only use the segment that fits the app you are trying to grow. The app analytics platform will enable you to understand your user’s preferences and craft a better ad experience.
5)Focus on App Store Optimization
The process of optimizing the apps for Google PlayStore and Apple App Store is known as App Store Optimization(ASO). This is done to increase exposure and downloads of your app.
Every user checks out all the elements of the app’s page on the app store before deciding to download the app. Your app’s icon, description, screenshots, videos, and reviews directly impact your number of downloads. Focusing on ASO will help you to increase revenue.
6)User retention focus
Retention rate tells you how many users return to your app in any given period of time.
It is a very crucial matrice to understand the feasibility of your app. Many publishers estimate user retention even before they release the app.
If your app has a low retention rate, it is more likely to fail. On the other hand, more the number of users that keep your app and return to it, more are your chances of generating revenue through in-app purchases or by in-app ads. Developers can use various app analytics tools like Firebase to calculate the retention rate for a set period of time.
Making a profitable app is not an easy thing, with the rising competition and oversaturation in many niches in the mobile app market. Considering the above recommendations will help you to reach your audience and increase your ROI.
We hope the above article helps developers to craft a sound strategy to maximize their revenue and increase the user base.
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