If you have a fantastic mobile app concept and it is integrated with the best mobile app monetization your app can make billions of dollars of money.
In 2023, the world’s most sensational app TikTok generated over $2 billion dollars in revenue. Monopoly Go, Google One, Candy Crush, Roblox, and Disney+ are some of the top-grossing apps that have generated profits of billions of dollars. Source
Many business owners and mobile app startups dream of earning big profits through developing a mobile app. But despite having a great mobile app development concept, their apps struggle to make money. This happens due to not having an effective mobile app monetization strategy.
Today, when the production of apps is growing significantly, the challenge of making money through apps is also getting tougher. Hence, to stand out in the competition and generate sustainable app revenue, you need to implement the best app monetization strategies for your app as per user and market requirements. And in this post, we have shared the top 5 strategies to incorporate in your app.
What Is Mobile App Monetization?
Mobile app monetization is the method of generating revenue and profits through mobile apps. It is a model that converts users into paying customers. It involves various methods and strategies employed in apps to produce revenue and maintain sustainable profits on a long-term basis. There are various types of mobile app monetization models. Each app monetization model has a different working methodology for generating money.
Top 5 Effective App Monetization Strategies for Mobile Apps to Make Money
How to make money from mobile apps is one of the top concerns for every business and mobile app startup. After all, the entire purpose of launching a mobile app revolves around producing profits. However, since mobile applications offer diverse products and offerings, all industries and business niches use them. Especially in custom app development services, businesses have to employ different app monetization models based on multiple requirements and business goals. Here we have listed the most effective strategies that you can choose for your app to make money-
1. In-app purchases
Nowadays, it has been basically proved that today most companies are integrating additional features to their mobile applications that are available for price and users can easily get these purchases if the deals shown to them are effective. Usually, it has become one of the trending ways for users to download the application that is free. Thus, this allows the companies to attain substantial opportunities to increase the rate of conversion by offering them the best additional content at their desired price.
2. Data monetization
It is an emerging app monetization model. Data monetization refers to the use of app data to increase revenue. It works in two different ways. The first is direct data monetization which includes selling the direct access to data to any third party. The second is indirect data monetization which helps improve business performance. Under this model, you get data to understand user behavior and make business-driven decisions. In the present time, we have seen how direct sales of app data have made the stakeholders earn huge business profits. Therefore, implementing the data monetization method can be a game changer for your app.
3. Banner Ads
Banner advertisements are meant to indulge traffic to the website by connecting it through variant deals. This is one of the best ways to advertise or display the ads having consistent images, content, animated images, or several media as this attracts more customers than native ads. Therefore, banner ads are also one of the best mediums for a brand to reach the targeted audience. Even the host is paid the appropriate amount over three mediums in the banner ads. The three mediums of payment are as follows:
- Cost per Impression
- Cost per Click
- Click per Action
It is one of the most used app monetization strategies in the mobile app market. According to the latest industry reports, there is a 35% growth recorded in the total consumer spend in subscription-based iOS apps and 24% in Android. This mobile app monetization strategy gives liberty to first download the app for free. And then subscribe to the app. Thus, this model is suitable for apps that offer premium or high-standard products or services through the app. It assists in increasing the user base.
Freemium is the most popular and widely implemented mobile app monetization strategy in the industry. In 2021, this model accounted for 94% of the entire market share and emerged as the leading app monetization model for developers and app owners. This model combines free and premium features in one single application. Under the free version of the app, users get access to a basic or minimal range of features. Hence, the premium version offers full accessibility to its all features and benefits.
How To Choose The Correct Monetization For Your App?
Now, what comes next is the process of choosing the best strategy as per the type of mobile application that might affect the development as well as both, revenue and user acceptance. To choose the best strategy for monetization for an application, the users or developers should make criteria of asking some particular questions to themselves. Some of those questions are as follows:
- What are the benefits of using your application?
- Does it ever serve a need?
- What type of unique features are offered by your application?
- The time required for engaging new users with your application?
- What is the targeted audience within your application?
Based on this data, you can easily choose the suitable monetization method for the app. However, since every mobile app has unique features and requirements the selection might vary accordingly. So, in the case of custom apps development, you even might have to combine multiple monetization models in your app.
Hope this article helps you to understand how to make money from apps & how beneficial are these mobile apps. Each mobile app monetization method has a different working methodology. Therefore, you should properly analyze your app’s requirements and business goals. And then, employ the suitable model in the app. If you need expert assistance to monetize your app or improve the performance of your app’s revenue model, get in touch with us right away.