Top 5 Quick and Effective Strategies to Monetize Mobile Applications
The strategies through which you can monetize your app are limited. This makes the decision of choosing one monetization strategy over the other difficult. The choice not only depends on the type of app that you sell but also the demographic that you plan to serve. A good mix and match of the strategies mentioned below will help you generate a good ROI (Return on Investment).
Here are the top 5 mobile app monetization strategies that can help you make millions, if implemented correctly.
Arguably, the top-of-the-mind way to generate revenue via mobile app monetization is to sell it as a paid application. This way, the users can download and use the application only after paying the money to download it. However, studies suggest that only a small fraction of smartphone users prefer paying a fee to download an app in the first place. Moreover, according to A Smart Bear, the highest rate of conversion goes up to 4%, which is not too lucrative for mobile app owners.
So, what do you do? Simple! Give them a taste of the application before making it fully accessible. You can launch a trial version of the application and hope to convert the free users into paid ones.
In case you are not happy with the numbers mentioned above, you can adopt the method of providing in-app purchases to generate revenue. Popular applications like Subway Surfers and Clash of Clans use this method to generate millions of dollars every year. The most popular applications that use this method belong to the gaming genre in the application stores.
A subscription-based model is popularly followed by applications that have the market position to offer online/offline services. One of the most popular music streaming applications in the US, Spotify, uses this model to generate revenue. It is advisable to go with a free trial phase with this model since there is a fair chance of converting the app users only if they get a taste of the offline streaming features. You need to install popular payment gateway plugins into your application source code to ensure that the user can effectively recharge the service without going to a third-party app.
Advertising is the quickest way to monetize your application interface. However, the trick in advertisement based monetization lies in placing the ads at the correct time and in the right place. For example, it is common sense that a user will not prefer an application that runs an advertisement constantly over the navigation buttons.
A pro tip is to place full-screen advertisements in the app interface when the application is processing some changes or running a background task that does not require too much attention from the user.
Some of the most popular advertising networks include Admob, Appnext, InMobi, Applovin, MobVista, Airpush etc.
Partnering with a company for sponsorship on the application allows you to generate a large sum of revenue in a short period. However, this mobile app monetization method works only when your application has achieved a certain level of popularity on the platform.
Bonus: Mobile App Development for Effective Monetization
Integrating a few critical and sensible elements into the application interface will allow you to place advertisements without compromising the user experience. 3 tips that you can follow with correct UX design on apps are:
- Not placing an advertisement on the home page.
- Providing a free trial for in-app purchases.
- Showing advertisements that are relevant to your application’s user base.
Following these tips will ensure that your mobile application development strategy is well-designed to inculcate monetization features. Contact us to know more about which app monetization strategy will work the best for your app.
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