One of the most frustrating problems faced by mobile app publishers is finding a way to profit from their applications. There are in actuality, a few effective approaches to get users to adopt your apps, be it games, utility apps, or just another recreational app. For instance, businesses and app publishers can deploy in-app advertisements, offering freemium items, enrolling their mobile apps in referral programs, and highlighting in-app purchases.
The more the company learns to suitably monetize free apps, the more they will be able to retain users, while raising the possibilities of increasing app usage.
A strategic ad integration within the app is important to avoid undesirable user abrasion. Seems a little tricky, but indeed doable. Here is how you can monetize mobile apps to find a fine equilibrium between user engagement and profitability.
One of the most well-known way to monetize an application is by going the freemium way.
A freemium app is made available to users for free. The crux here lies in providing only limited features to users in terms of services, products, or information.
This option is useful in eradicating the pricing as a hurdle to install the app for end users. It gives a chance to the company to showcase what they have made and how resourceful that app is
End users are expected to make a purchase decision for getting monthly updates. Another way is to simply provide a free version of an application to make quick sales. This enables users to buy additional features in exchange for a certain amount og money in terms of a monthly subscription fee.
Users should feel that the app is worth to shell out money
This is perhaps the one of the initial monetization techniques used by app developers. The key to succeed in this strategy lies in spending a good amount of time in considering the right place for the placement of in-app ads.
For example, Trulia app uses the relevance-based ad techniques; It displays the real estate agent’s contact information for area code, which users type while browsing. These kind of in-app ads contribute towards improving the user’s experience.
One-time Paid Apps
This app monetization strategy demands users to pay upfront upon installation. The updates and additional are features are all free to use. Considering the fact that there are a lot of apps in the app store, yours one should stand out enough for asking users to pay.
Another challenge lies in developing a consistent revenue stream. This demands searching new app users each time.
Paid Apps with Additional Features for a Fee
Though often criticized, app developers and businesses can augment this hybrid monetization strategy. There are two ways to monetize such apps; either by taking a smack download amount from users and then asking them to pay again for additional features (Not recommended though) and other is by going the freemium way – fee download but levying charge for additional features.
One of the hard ways but certainly an ideal strategy to get your app sponsored by other products and services. This is possible for iPhone applications as apps are reliable and a little less buggy than the ones in Android. Sponsorship lets your app work as a platform for advertising other products and services while app publishers can earn revenues from those paid ads.
But for this to work perfectly, getting the right target audience is really important. For example, a mobile app made for athletes or runners can raise sponsorships from brands like Adidas and Nike
It is always ideal chart out the method to monetize mobile app or else there ain’t no point in publishing one. Choose the most suitable of all method depending on the type of products or service offerings and also your target group. These all aids in determining the ideal app monetization strategy.