There are over a million mobile apps currently in the App Store, and most of them are totally free. What does this mean for your app monetization strategy? Looking for profits with a paid app can be a risky endeavor– you’re thinking that users will certainly agree to hand over cash when there are many useful alternatives.
With a totally free app you’re likely to get more installs, but then you need to be smart about monetizing. And in lots of methods, monetization models free of cost apps transcend to paid apps, allowing more room for creativity and the possibility of improving the app experience and making it simpler for users to make purchases.
Developing mobile apps is very exciting no doubt, but making any money from the apps is a completely different story. Even with the intense competition in the app stores, marketing professionals have never had such a massive chance to monetize their apps as now. Here’s a look at the popular mobile app money making techniques and how we have actually used different techniques for our own apps:
In-App Advertising
One of the most essential factors to think about for monetizing your app is to make an extensive monetization strategy. In App Advertising has been the most popular and often the most satisfying money making strategy in our experience. All you have to do is promote somebody else’s product and services in your app. These days there are lots of Mobile marketing platforms that publishers can use. Plus there are a variety of Advertisement formats to satisfy the requirements of different kinds of apps.
Mobile ads are appearing a growing number of in apps since they enable you to monetize without requesting for cash directly from users. With in-app advertising, you get rid of the cost-barrier to purchasing your app and permit complimentary downloads. Your goal is to create a large (and steady) user base and collect appropriate information about those users to sell to other brands and app publishers, who pay you to place targeted ads in your app. And, due to the fact that your app is completely complimentary, you have a much better chance of gaining (and keeping) new users.
When done properly, advertisements are a smart option, because they do not sidetrack from the user experience. In-app advertising is carried out in a highly-targeted, customized method to bring in users to appropriate offers– they turn bad when they cross the line by creating privacy issues. This model requires care and focus to guarantee that it does not overrun your native app value and discourage otherwise engaged users.
This design might be right for you if:
- There are no natural opportunities for in-app purchases in your app.
- You frequently gather choice data about users.
- Advertisements won’t take away from your app UX (or take up excessive screen space).
- You want to belong to a lucrative and growing advertisement market.
Freemium
As with the in-app advertising model, a freemium app is also offered free of cost. However, particular “advanced” or “premium” functions are gated and cost cash to be opened. Simply puts, people have access to your app’s fundamental capability and features, however there is a charge to then access everything. The objective is to accumulate and engage app users till they see the value of the app and want to pay to access added in-app tools.
Lots of successful gaming apps fall under this category– they have actually found success by making basic video game variations free to all users, but needing the user to purchase added levels or premium alternatives. From Angry Birds to the shockingly successful Kim Kardashian: Hollywood video game, freemium apps enable people to quickly play and become fans without being reluctant at the initial price. Once app users have conquered a few levels or want to up their condition, they’re engaged enough to spend for the full-fledged version for more hours of enjoyable.
One note of care: be upfront in your App Store listing and other appropriate places that your app needs purchases to open sophisticated functions, levels or other functions. If users do not realize that’s what’s in store, it could turn them off completely.
This model might be ideal for you if:
- You’re a pc gaming app.
- You have levels or innovative functions already in your app.
- You have long session lengths and highly-engaged users.
- Can supply a fantastic complimentary app experience.
In-App Purchases
In-app purchases are precisely what they sound like.The goal of this design is to turn your app into another sales channel (for physical products that are utilized in the real life) or a mobile stores (for virtual items which can only be made use of inside the app) and retain the revenues. In-app purchases can include a wide range of durable goods, and aren’t limited to retail apps.
This design can assist you receive revenues with the lowest quantity of danger, plus, purchasing virtual products can cause deeper levels of engagement (growing money making strategy). Not every app can have in app purchase as a monetization strategy. So this is limited to apps that sell something of value to the users. This strategy is mostly popular as a money making strategy for mobile games. In App purchases can also be made use of to “Unlock” some concealed functions within a conventional app or to buy credits and so on.
One way to utilize this model is to sell virtual items such as additional lives or in-game currency. Dating apps, such as MeetMe, enable you to easily browse profiles and chat with other users, but also offer credits to improve your visibility and get new ways to communicate with individuals. MeetMe’s purchase model is profitable due to the fact that the app has the ability to clearly highlight the benefits of in-app currency. Your takeaway: whatever your app is offering, make certain the in-app purchases feel like a natural part of the app experience (and have a simple checkout process). Also, ensure you plainly and resolutely market that your app has in-app purchases, to keep things honest.
This model might be ideal for you if:
- You’re a retail or services app.
- You offer goods with clearly-defined value.
- You have a clear chance to present items into your app (such as Keep, an app that enables you to “keep,” or include items of interest to your numerous boards, and just recently incorporated a shopping cart feature).
- You do not mind that App Stores generally take a cut of the earnings for virtual products (but not physical products or services) acquired inside your app.
Sponsorships
Sponsorships are quickly the most recent (and greenest) monetization design. With sponsorships, you partner with advertisers who offer your users with rewards when they total specific actions within your app. In this model, your app earns money by taking a share of the profits from redeemed benefits, and concurrently enables you to integrate advertising that in fact enhances your app’s ability to engage users. This model can be adapted for almost any vertical, and can be much better received by app users because it is relevant and associated to an app’s function.
An early adopter of this app business model is RunKeeper. RunKeeper encourages users to track their running activity in-app by offering “benefits” upon conclusion. These exclusive rewards and promotions originate from marketers, thus, incentivized marketing. The user feels rewarded for having made use of the app, and the advertiser gains impressions, click throughs and conversions. Using this strategy, RunKeeper can monetize their app without interrupting the user experience with potentially intrusive banner ads.
This model might be right for you if:
- You prefer a behind-the-scenes (and rewards-driven) monetization plan.
- You have an app that makes it easy to reward in-app activity.
- You desire to try something new and different (and don’t mind taking a chance on a relatively new model).
- You can be mindful about what actions you incentivize within their app.
Affiliate Marketing
Affiliate marketing has its use in mobile apps as well, however in mobile apps, selling some one else’s product might not be as straight forward. Successful apps tend to supply a high quality user experience for example curating tailored products for the users. Most of the online retail stores do offer affiliate programs, but the app developer may have to sign up for each one individually. It is not as straight forward as advertising, but it can be more rewarding if used correctly.
