By Rafael Tomas | November 13, 2015 | 6 Comments
More than $77 billion in revenue annually is generated from the mobile app market. With that huge amount, you would figure that everyone gets a fair share in the money pie, right? Wrong, only a small percentage of mobile app developers and companies receive the majority of this revenue while the others struggle just to break even.
There needs to be a clear understanding of app monetization strategies, the most important aspect of mobile app marketing, for you to reach your financial goals. With various models of app monetization available currently, selecting the right approach is the most difficult decision a developer or company will make.
It especially can be a challenge considering these factors:
1. When do you need the app to be profitable?
2. How much you need to earn cover costs?
3. Which option is profitable, Google Play or App store, free vs. paid apps?
4. Will users actually use in-app advertising?
5. Will the app deliver enough value so that users pay up-front?
6. With a free app, what monetization models should I use?
These are just some of the questions that companies must consider. Every company will have a different opinion and conclusion based on their circumstances.
Some commonly used monetization strategies are:
• Paid App – Charging users for using the app. You must ensure that the app offers great value, has great features and it is highly recommended.
• Freemium – User start with the free basic features but the premium ones are locked. Users have to pay for unlocking them. With this option, you must ensure that the free version provided value and was engaging enough for them to pay for the additional functions within the app.
• In-app Advertising – This is commonly used with free apps. Advertisements are placed within the apps and if the users purchase other apps through the ads, then the company will receive a commission from that sale.
• Subscriptions – Instead of locking features, the company can lock the content or restrict the content. For the user to receive the premium content, they must subscribe.
• Incentivized Advertising – Partnering with advertisers that reward users every time they complete a specific in-app action. These actions may include completing a video ad view, registering for a website, installing an app, engaging with an app, etc. The reward may be virtual currency or a game item, upgrade, discount on a product/service, etc.
• In-app Purchase – Allows users to purchase more physical or virtual goods to reach higher levels easily.
This mainly occurs in games, where the user is able to purchase virtual goods for the game through the app itself. Say, for a mobile game app, the user wants to reach a certain level, instead of playing to reach that level, they have the option to make a payment on an in-app purchase that will carry them to that level.
Your monetization strategy will impact your app’s success.
At MishNat, we can help you develop a monetization strategy for your app. Since we know the end results, getting you a chunk of that $77Bln, our strategy we answer all the questions you may have.
Have questions about making money with your app? Want to discuss an idea with our experts?
About 10 Min ago
Great article, i love how indept the top is.
4 days ago
There are many fine points regarding application development here.
2 days ago
I completly agree with Mary. Android and ios develoment is the next step for any business.
About 50 Min ago
Its just like it was when websites came around. People did not think their business needed one but look now every business that whants to stand out needs to have one.
About 20 Min ago
Few years ago android and ios apps where mostly for fun and play but now most people rely on them as if it was mandetory. I personally think every normal company should have an android and ios application.