Ishan Gupta

Top 6 Proven Mobile App Monetization Strategies To Achieve Better ROI

1 August, 2024

To unlock the financial potential of your app, you need effective mobile app monetization strategies that deliver a substantial return on investment (ROI). In today’s tech-driven age, building a successful app is not only about focusing on user experience, it’s about making it more profitable.

There are a hundred thousand mobile applications that are free to download and accessible to users. It may seem counterintuitive, but many of the top-grossing apps cost nothing to download. Clash of Clans, HBO Now, and Spotify Music are just some of the free top-grossing iOS apps in the App Store.

But the question arises how do app creators manage their expenses and profit after the average 4-6 months it takes to ship an app? This can be possible only by having a clear monetization plan. In this quick guide, we will discuss the top six proven mobile app monetization strategies that can convert your app into a revenue-generating source.

Table of Contents

What is meant by Mobile App Monetization?

Mobile app monetization is a process through which app owners can generate sustainable revenue.You can choose from several app monetization models. However, the best fit for your mobile app depends on your mobile app’s vertical and target audience.

To choose the best app monetization models, you must consider your user journey and how it can improve the overall experience. Therefore, don’t monetize in a way that confuses users. It will not help you to build a good brand reputation.

Finding the right monetization strategy for your mobile applications can be a challenging process. But you need to consider crucial steps to make your app profitable.

Top 6 Proven App Monetization Strategies:-

1. Advertisements

Ads are an effective and easy way to earn revenue from your apps. It is one of the best mobile app monetization strategies to support your mobile application. You just need to display commercials inside the mobile app and get paid from the third-party ad networks.

There are mainly 4 types of ads:-

Interstitial ads: Full-screen pop-ups that are displayed at specific time frames.
Banner ads: Displayed in different sizes and at the top or bottom parts of the app screen.
In-app video ads: Displayed automatically and generally used as a reward video in exchange for some in-app reward.
Native ads: Native ads are integrated to appear as a natural element in the app.

2. Subscription

If you are wondering how to earn money from apps, then mobile app monetization strategies are quite effective. Initially, you can offer users a basic set for a free trial period and then charge the subscription fee to those who wish to continue to access the app content. You can charge them weekly, monthly, or annually. Apps like Netflix and Spotify earn huge revenue using this strategy.

Use the below strategies:

Drive interest and adoption with a low opening price point.
Serve the needs of the crowd with an offering that’s just right.
Nudge customers up with a super-premium option.
Value-Based Pricing

3. In-App Purchase

It is also one of the effective strategies through which apps make money and drive success.

In-app purchases are directly made from within the app and are usually a quite simple process. They’re typically used to access special contents or features such as power-ups, restrictive levels, or additional features.

We put together the following key tactics that will ensure you’re in-app purchase conversion rates see a continuous upward trend in the months to come:

Get your users hooked to the app.
Create an urgency and give discounts.
Provide a “Remove Ads” Option.
Offer One-Time Deals.
Make the Player Earn Your IAP Content.

In simple words, in-app purchases mobile app monetization strategies aim to provide the ability to sell a variety of virtual items directly from the app. Even the leading money lending app development company deploys the in-app purchase strategy to get the desired results.

4. Affiliated Program

A mobile affiliate network is a mobile platform, which expedites the mobile advertiser and affiliates a common ground.

While the mobile advertiser might be the mobile app owner or might be a business that sells an item or services through mobile apps, the affiliates here do performance-based advertising for the sponsors.

Here, by joining a mobile affiliate network, you would promote important apps, products, or services being offered by your affiliates and acquire passive income from it.

This income can either be as a fee for every activity where you can win money each time somebody taps on his or her ad, installs their app, or completes some other (wanted) activity.

The second structure is the revenue sharing model where you would get a specific level of income that you have figured out how to produce for the sponsor.

You can select on any of these platforms and your app revenue is going to soar up exponentially!

5. Freemium Model

“Freemium”—a combination of “free” and “premium”—has become the dominant business model among internet start-ups and mobile app developers. Users get basic features at no cost and can access richer functionality for a subscription fee.

The following are mobile app monetization strategies for a successful freemium app:

Build a user base.
Deliver top-notch quality.
Cut down on costs.
Offer one-time deals.

6. Sponsorship

Sponsorship is another powerful strategy through which you can make money from your mobile app. However, possibly functions admirably just if you as an app proprietor can discover a support with comparable or the same target market.

When you get the right sponsor, you can build an app and adjust its configuration to match the sponsor’s image.

The developer would need to build a niche app for customized app for a customized app before launching the app for the benefit of the Sponsor Company or Brand.

Presently, this can be even your nearby hair salon or a popular restaurant.

There are two distinct ways by which you can work out a deal

A Revenue Split
Monthly Sponsorship Fee

This strategy can be a significant worthwhile proportion. The app developer, you for this situation would get the benefit of the current web traffic and brand reliability that the support brings to the table. This can help you promote the app while expanding your user base.

Read Also- Money Lending App: Best Tips and Strategies

Conclusion :

Which method is the best fit for your mobile app? Before choosing a mobile app monetization strategy, make sure to have an in-depth knowledge of top strategies.

If you are also looking for a top app monetization consultancy and finding the above in alignment, we would be pleased to interact with you here at RipenApps, since we are prepared to satisfy all the mentioned parameters prior we start.

For further information contact us and get a free quote of knowledge & consultation. Leave the worries behind & start making money from your mobile application.

FAQs

Q1: Why is monetization important for mobile apps?

Monetization plays a crucial role as it allows business owners and developers to earn better returns on their investments. They can also ensure the sustainability of their mobile apps. It can lead to increased profitability and growth.

Q2: What are in-app purchases and how do they work?

In-app purchases allow your users to buy premium features within the app. Users can make purchases of virtual goods directly within the app. Thus, it provides a steady revenue stream.

Q3: How can subscriptions benefit app monetization?

Subscriptions aim to provide a recurring revenue model through which users can pay regularly. They will get access to premium features. It helps you to have a steady income and builds a loyal customer base.

Q4: What are the key factors to consider when choosing a monetization strategy?

You need to consider key factors such as the app’s target audience, user experience, and overall business objective. As a business owner, you need to balance revenue with user satisfaction.

Q5: Can I use multiple monetization strategies simultaneously?

Yes, you can use a combination of monetization strategies to increase your overall revenue. However, you need to implement these strategies in a way that complements the user experience and meets revenue goals.