The emotion you have when you finish and launch your app is amazing but, another great feeling is when that app brings you money. It is relatively hard to create a smart monetization strategy, but when you achieve that, prepare yourself for serious passive income. Another reason to think about monetization is the following chart from Statista where the worldwide projected spending on mobile apps in 2020 are over 101 billion U.S. dollars.
There are many ways to monetize a mobile app and we are presenting the most important ones that are used with great results.
First, emailing news and updates is still one of the best ways to keep in touch with your users. You will need to create a serious base with their addresses but when you will send them insights about your app they will feel that are part of the whole experience. So, more engaged users mean more money. Try to get as many subscribers as you can, through an app form or if you have a website for that app is even better. Offer them small bonuses and they will be glad to give you their email addresses.
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If your app is free, one of the best solutions to monetize it is to insert some ads inside it. Here are different options available and it is your call to choose those that fit your app type and your budget. You have to be careful though, about their frequency and timing. If there are too many ads or if an ad pops up in the middle of a task it will have the opposite effect. Not only it won’t bring you any money, but it will make that user to delete your app.
Banner ads are the most common ads. They are small images that come one after the other and they are placed on top or bottom of the screen. Keep in mind there are users that don’t appreciate them because these ads can distract them from the main activity.
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This type of ad is better received by users because it is shown between activities and it doesn’t interrupt anything. Interstitial ads are viewed like little breaks between tasks.
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Video ads length varies between 15 and 30 seconds and can be forced (don’t allow user to skip the ad until it is finished) or un–forced (allow user to skip the ad after 5 seconds). Although the first type results in greater revenue there are high chances to annoy your user. So, you have to decide what is going to be: money or users. Of course, you can end up with no users at all and therefore – no money. From the point of view of implementation, video ads can be voluntary, when users opt – in for viewing the ad or involuntary when the ad just appears between activities or levels. Choose what is appropriate for your app, if you have in mind this strategy.
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Native ads are applicable for all kinds of apps because they are built in such manner that they blend in with the rest of the layout.
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In – App Purchases are more suitable for those apps that sell products or services like mCommerce apps or shopping apps. Customers are able to download the app for free, but focus a lot of your attention to the onboarding flow. If the app is not intuitive, they will prefer other ways for making their purchases. A survey conducted by Apptentive shows that in – app purchases drive the biggest revenue for mobile owners.
This strategy is aimed to provide awareness to customers and to establish the connection between app and user. The greatest benefit in investing effort in this method is that it will increase users’ lifetime value which we know that will increase conversions.
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This term is a combination between free and premium, which means that the app is free for downloading and for basic features, but users will have to pay for more options, like new characters or more lives in a game. Be careful with this aspect because the free version must be rich and engaging too, if you want to convince them to pay for more. Also, never interrupt a user in the middle of an activity to make the announcement that he has to pay to move forward within your app. Wait until he wins a battle or he completes some interesting task and then try to offer him other privileges for money.
If you have a mobile app that constantly changes its content, like news, blogs, courses or tutorials you can convince your readers to opt for paid subscriptions. They will pay a specific amount of money and they will receive the desired information.
The key point here is to find other brands that will enhance the experience of your users. They will promote your app through their products and you will do the same for them.
For every app owner, there are ways to monetize his app. Whether he chooses some free options or he goes for paid but more efficient ones to make profit, it is good to know that if he does all things the right way he has many solutions to convert users into customers.
I would like to challenge that.
Mobile app monetization is more than in-app purchases, paid, freemium, ads, cross promotions, etc. Apps now can be monetized more efficiently through engagement driven physical awards like app branded merchandise.
What drives success, is fan engagement, fan loyalty. Digital awards and incentives, “hooks” as Nir Ayal places it, that’s how you build month to month strength in revenue stream stream.
Angry birds prove the concept. Services like TheMonetizr.com does it for you. Google it, research it! Try on your own!
But make sure you challenge your assumptions of well known revenue models.