Effective mobile app monetization strategies are reshaping the revenue landscape for businesses.
Do you know the number of mobile apps are available for download on the app stores? Android’s Play Store has nearly 2.4 million apps, and the Apple App Store offers some 1.4 million apps to download. The numbers tell us how fierce the competition is.
As we witness a shift in digital privacy lines, user behaviour, and macroeconomics, app developers must stay on top of the changes happening while ensuring sustained growth. Marketers can adapt to this changing landscape by using the right app monetization strategy.
What is mobile app monetization?
Mobile app monetization is a simple process of generating revenue through a mobile app. With a multitude of monetization methods, enterprises must find one or two strategies that work for them.
Why is app monetization essential?
Talking about the year 2009, approximately 90% of the apps were paid. Fast forward to today, and only 10% of mobile apps require payment to download. The Google Play Store has only 3.1% of apps that charge you to get downloaded.
So, what does this shift to free app downloads suggest? The shift puts a responsibility on app developers to think more creatively to generate app revenue.
To ensure your app continues to grow while maintaining its credibility and stellar user experience, here are some of the top monetization strategies you can adopt.
Marketing Technology News: MarTech Interview with Miguel Lopes, CPO @ TrafficGuard
Top Mobile App Monetization Strategies
In-app advertising
In-app ads are those that users see after logging into the app. YouTube is the best-known app to support in-app advertising. These ads include native ads, banner ads, interstitial ads, and text ads. The app revenue model is one of the most chosen app monetization strategies and shows no signs of slowing down.
In-app ads perform 11.4 times better than banner ads on mobile websites. Predictions have shown that revenues obtained from in-app ads will triple by 2025, rising to $226 billion.
Using native ads to grow CTR
Native ads are a go-to choice when it comes to generating revenue from mobile apps. They are chosen by the developers and the brands because they blend seamlessly into the host app and appear as just another feed. When done right, these ads achieve their objectives with minimal disruption to the user experience.
Native ads are also proven to have high engagement rates, and the click-through rate of native ads is 8.8 times higher than that of regular ads.
Leveraging freemium subscriptions to drive conversions
Instead of falling under the umbrella of subscription-based apps, you can use “freemium” to monetize your mobile app. Once your users download your mobile app, they are offered in-app purchases that give them exclusive access to additional features of the app. It is a great way to convert your free subscribers into paid ones.
One of the benefits of freemium subscriptions is that they are scalable. You can allow your venture to scale up without incurring any costly overhead. Additionally, freemium subscriptions give users the ability to try out the app before they commit to paying for it.
Premium subscriptions bring stable revenues.
Certain apps ask you to pay to download and access them. These apps work on premium subscription models by asking for a fixed fee immediately upon downloading. In this monetization strategy, revenue is generated based on the number of downloads. Such paid apps show higher user engagement and customer acquisition.
Premium subscriptions offer a reliable income stream, ensure longevity, and bring loyal and valuable customers to your platform.
Affiliate marketing offers
The tech giants, including Microsoft, Google, and Apple, have affiliate programs open to app developers. These programs are meant to promote other mobile apps within your app. While the remuneration and fees charged under this model are not high, app developers have a choice of which apps they want to promote through their apps. One can choose apps that encourage users to associate themselves with apps of similar brands.
SMS marketing
The last item on our list is SMS marketing. While this is a little old-school, when done right with style and a touch of humour, it works effectively in reaching out to users. The monetization strategy helps to offer discounts or encourage users to make in-app purchases.
You must reach out to users who have explicitly agreed to use their data. Think twice before drafting the message—check the length and time of the message.
Which app monetization strategy works?
There is not a single correct answer to this question. Only you can decide the kind of app monetization strategy that can work for your business. Depending on your target audience and their interests, you can choose a monetization strategy that works best for them. You may need to test a few strategies before finalizing the most suitable one.
Marketing Technology News: Time to Start Holiday Marketing is Now