Tips to Mobile App Monetization
We live in the generation of smartphones, where the number of smartphones in the world has climbed up to an estimated 2.5 billion. The rising market of smartphones signals an increasing demand for mobile applications, which is evident from the fact that in 2021, mobile applications revenue jumped 35% to $60 billion. Now, if you’re looking to improve the revenue stream from your existing application, there are some strategies you can adapt to monetize your requests effectively.
Actionable Tips:
- Developing a monetization strategy that aligns with the product strategy
- Developing and executing in-app purchase strategies
- Create compelling content to drive in-app purchases
- Developing mobile app ad products to maximize revenue opportunity and ROI
- Execute a go-to-market strategy for mobile apps with ads networks
Strategies
One of the most common strategies ensuring a consistent flow of revenue is the subscription model, where users pay a regular subscription fee to get access to all newly uploaded content such as 9Listed Digital News. That works best for entertainment and news-type services. It must, however, be noted that the application is based on recurrent and repetitive usage. A great example of this is Netflix.
In-app purchases
Moving on, In-app purchases are also an excellent source of revenue generation. Through this strategy, you can sell physical or virtual goods to the users. This strategy is considered the most profitable for gaming applications, where users spend hundreds of dollars on upgrading characters, collecting collectibles, or unlocking additional features. About 48.2% of mobile app earnings in 2021 were through in-app purchases, providing a quality experience to the users.
In-app advertising
Furthermore, in-app advertising is considered one of the most common ways of earning revenue through a mobile application. It helps build free applications and allows the producers to make money. Its implementation process is easy for developers. However, it is considered annoying by many users and can differ the user experience. This model also does not work correctly on all applications, such as a cab-hailing apps. Ads must be placed according to the potential interests of the users.
Freemium Model
On the other hand, the freemium model provides users access to the essential features of the application. Still, if the user is looking for additional features that might improve their experience, the user has to buy them. The downside of the freemium model is that the user might not need to opt for the additional services, meaning it’s better not to base the monetization strategy solely on freemium. It’s ideal for educational apps and progress-based applications. The free version should be compelling enough to encourage users to buy additional features.
These are just a few strategies linked to mobile app monetization. The proper technique is adopted by examining the type of product/service, the target market, and the competition.
If the whole process of monetizing or even creating an application looks daunting, then don’t worry, as it has as got you covered. It ensures that it works on your project only while producing build-to-order applications. Web systems also provide a consulting service that can assist you in developing your strategy. You are delivering the best quality product and being cost-effective and efficient.
