Monetizing mobile apps is a strategy to generate revenue from mobile applications without charging download fees. There is a huge range of free mobile apps in the market, which makes users reluctant to buy apps usually. Not every app is designed to monetize, but with a few strategies, they can generate money.
When it comes to monetization of mobile app, you must have a deep understanding of app monetization strategies. With any monetization approach, you should consider not only revenue generation but also user engagement. Some app monetization strategies may work more effectively than others in generating revenue. Hence, it is important to find the approaches that work better for your app. Finding a balance in strategies will cause your app to grow continually and still offer a good user experience.
Below we have listed down the best app monetization strategies. These strategies generally work effectively on different types of mobile apps.
Email marketing campaign is an excellent strategy to gain customer engagement. It also increases ROI since people barely change their email addresses.
Anila Lahiri, Chief Marketing Officer at EINSearch, said, “Keep your brand on your customer’s mind with email marketing. It helps the customers to think of your business when they are in need of the service or product you are offering. Additionally, with regular emails, you increase the probability that users see your content and engage with it. The best way to collect a user’s email address is by adding an email subscription form to your app. You can send an email with a deal or promotion to your users to increase app engagement. Or, if you have a newsletter or article, you can promote your content in the email as well.”
Royal Hernandez, Founder at starandlink, said, “Place ads in your mobile apps to generate income. It is an effective solution for app monetization without directly charging your users. To make it simple, you can gain steady cash from ad buyers who will pay you to display their ads on your apps. It is a win-win situation for both the ad buyer and you where you get the cash and the ad buyer gets engagement. The in-app advertising is easy to implement. They are the least effort and quick implementation from the developer’s end. When you display ads in your application, you display it in different formats.”
Let it be a rewarding video, playable ads, banners, or others. These features provide an additional visually appealing experience for your app users.
Freemium and Premium Apps
Freemium apps are a type of monetization that enables users access to general features for free. At the same time, these apps charge the users for premium or more advanced features. It is a great strategy to attract new audiences, increasing revenue with no charges. Moreover, it is also a benefit for users to try out the product before commitment.
With the freemium monetization model, you provide your users with the ability to download and use your app. They do not have to pay any fees right away, making your app more accessible than the paid apps. It can be an amazing approach to engage new customers and extend your user base. Plus, as people use your app regularly, they may want to unlock new paid content and features. You can always opt for a paid-for option but only when you are providing unique value. Otherwise, you will face a hard time to foster your app and user base to generate revenue.
Partnerships and Sponsorships
Try to develop a partnership with another brand. This strategy will critically step up your app monetization game.
Hank Williams, Founder at autowiringpro, advised, “Look for a partner who has a similar user base and can add something new and different to the user experience. When two or more partners work together, they benefit their business as well as the customers. Your sponsor can display your app ads in their application. It will increase the chances of users to click on the ad and increase conversion rate. Plus, it may also convince them to download your app. In this way, you and your partner can gain trust from the users and increase engagement.”
Bob Smith, Founder at Starlinkzone, said in an interview, “When you add in-app purchases, it is like a shop available in your app. In these stores, the users can purchase virtual services or goods, improving their mobile app experience. In-app purchases are usually found in game apps and a very successful strategy for them. But many non-game apps also use such features for monetization. When you implement in-app purchases, ensure that it fulfills your goal and expected user experience. The users have the freedom to choose which features they want so they do not waste their money. This freedom will enhance user satisfaction as they do not feel forced to pay for unnecessary stuff.”
Subscription plans are one of the most profitable strategies to monetize your mobile app. Many popular apps used this monetization strategy, for instance, Netflix, Amazon Prime, and Disney+.
Abner Miller, Founder at Starlinkhow, said in an interview, “Charge users with regular fees and give them access to your app and its features. It will help you to generate revenue consistently. Make sure you have the right features and incentives in your app. This strategy will be of great use to retain customers in the long run. Many fitness and meditation applications also use this monetization strategy. Ensure that your app is valuable for subscription and open your road to continuous revenue. With subscriptions, you have a predictable revenue stream. These are more reliable than in-app purchases or paid-for download models. Plus, this strategy also provides long-term growth potential with stability.”
App data has become very significant nowadays. Developers use app data as a helpful cause for mobile development trends. Many businesses mine user data to know how they can create customized experiences. Moreover, they also use such data to target ads in a more accurate manner.
Ryan Steinolfson, Business Owner at Accelerate Marketing, said, “You can anonymously transfer non-personal app data to a third-party. In this way, you can generate revenue from the third-party, giving your insights. Make sure that these data may include only analytics and insights of your app. Do not share the name, income, gender, or any other customer-related personal data, preserving brand loyalty. With app data, developers can discover hidden features and make data-driven decisions. These decisions are not just assumptions but made considering the facts. Hence, they welcome more opportunities and prevent risks. That is why data monetization is now an increasingly known strategy to monetize your mobile app.”
Push Notification the Seasonal Offers
Push notifications appear on the user’s mobile screen as short messages. You may have used email to remind them about the cart they have abandoned after adding things to it.
Anthony Dutcher, Chief Marketing Officer of Veriheal, said, “Usually people have busy schedules and they ignore the amazing seasonal offers and emails of your apps. That is when push notifications become ideal to communicate with your users. Inform your customers about the latest seasonal offers and discounts you are offering. Or remind them about the products in their shopping basket through push notifications. With this strategy, you increase user retention rate as well as generate revenue with in-app purchases.”
Develop Strong Codes
Establish your own code from scratch and try to make it successful. It will cause other brands to approach you and request to re-skin your application.
Noah Clark, Founder at sparkaven, said, “License your code to another developer and make money without compromising on your user interface. The other thing you can do with code-sharing is the endgame of your app. There comes a time when you get all the possible value that your business expects from your app. Now, you are ready for the next step. You can sell your entire mobile app to a buyer who is willing to use your present framework to develop their own app. It is a great way to move on your app and instantly gain money by selling your established app.”
Many businesses try to generate money from one source as much as they can. Likewise, mobile developers can maximize their revenue with some simple monetization strategies. You can mix up the mentioned strategies to create a balance in your mobile app and monetize it in an efficient manner.
Learn to monetize your app by not only just giving access to your content but adding some other features too. These additional features may include in-app purchases, in-app advertising, banners, etc. With these strategies, you can make your website visually appealing as well as increase revenue. This will lead to user satisfaction and a high retention rate without disrupting user experience.