Monetization is more than just making money with your application. It comprises an evolving, complex set of opportunities to boost your profitability. Advertising is the primary component of monetization, but not the only one. Let’s take a look at how to turn your app into a consistent revenue stream with a comprehensive range of monetization tactics.
Customers love that apps can make their lives easier. But there’s a ‘little’ difference between the needs of developers and those of app users. The first group is in the business because… Well, it’s a business. The second group is accustomed to having all they need on the Internet for free. So how can you monetize your app if your customers don’t really want to spend their money?
The key is growing engagement with the app. Of course, you can earn millions of dollars on paid apps without any in-app purchases and advertising. But these apps are extremely rare. Economically, aiming to grow a unicorn gives you fewer chances to succeed. we at SYSPOLY giving you the ideas of mobile app monetization in this article
1. In-App Ads
One of the first monetization strategies considered by app developers is in-app ads. However, you’ll quickly find that they tend to add more frustration for your users than income for your app business. The few apps that do well with in-app ads spend a significant amount of time considering where to place these ads.
Trulia, for example, displays the contact information for area real estate agents as users browse listings within specific ZIP codes. This type of advertisement is seen as improving the user experience rather than intruding on the user..
The basic idea of the freemium model is to offer a stripped down version of the app that still meets the needs of most users. In addition, a premium version is offered with a package of additional features. Ideally, enough users will choose to purchase the premium upgrade to offset the cost of development. One of the biggest drawbacks of this monetization strategy is that the bulk of your users, those using the free version, will have an inferior service.
3. Affiliates and Referrals
Similar to in-app ads, affiliate programs and referrals can work well if they are done right. It’s important to match your offers with your users. However, keep in mind that setting up an affiliate program with a product that does not make sense for your audience may do more than just result in no revenue, it could cost you, users. Matching referral offers user profiles can transform your app into a shopping magazine that drives sales.
4. In-App Purchases
Games have pioneered the in-app purchases monetization strategy. This is very similar to the freemium model and even has a great catchphrase: “free to play, pay to win.” In-app purchases can be additional resources and gear, just like they are in most games. However, it can also be sticker packs, camera filters, toolkits or other elements that modify your users’ experience with the app. The key is to provide just enough free access to the app that your users can begin to see the value of making in-app purchases.
5. Push relevant information outside of the app
Push notifications don’t necessarily generate immediate revenue, but they do improve long-term engagement with your app, giving advertising more time to work. Users who enable push have 88 percent higher engagement and nearly three times higher retention than those who disable it.
6. Optimize your efforts.
It’s much easier to optimize and track your efforts with robust analytics, and a data-driven strategy gives you better results and a better ROI. Learn which efforts are most successful with your audience, pursue those, and your margins will increase accordingly.
7. Paid-for Apps
How’s it different? Apps that require paid downloads suggest better quality. They are mostly free of ads and unique, but how do they affect revenue? One download means one payment.
That’s why in-app purchases have overgrown paid-for apps in terms of revenue. Paid subscriptions and bonuses are like making offers to people who are already your customers. It’s cheaper and easier to convince them to make consecutive purchases when the first one was free.
Paid-for apps are more demanding to monetize. They need proper marketing and high positions in rankings. And even though this can work, you are constantly looking for new customers.
Thankfully, mobile-app developers are not scared off that easily. Although in-app-purchase revenue is growing rapidly, paid apps are still generating more profits than in-app ads.
This way of monetizing the app is more appropriate for those with a solid amount of users – but you can aim for it while attracting those users. It’s similar to the way you might look for a sponsor for a racing team or an event.
What could you offer to your sponsors? As in sports, the biggest thing you can provide is title sponsorship. This would modify your app’s name, but it can be beneficial for your sponsor if you address the audience that is relevant to his or her industry.
It’s easier to get into such partnerships for companies that are outside the mobile-app industry – they gain both potentially interested users and an app.
Time to monetize?
There’s plenty of other forms of monetization. You just have to find out which will work in your case – and if it won’t, just try another one.
Your focus, however, should still be enlarging your customer base – the number of people who actually use your apps. The bigger that number, the bigger the potential for monetization. So focus on making the app great – the profits will follow.
The most important thing to keep in mind when monetizing apps is, to begin with, the right business model. You must think about how you will acquire new users for your app, what problem the app will solve, and where your app adds value for users. Knowing these things will help you figure out the right way to monetize an app. syspoly is a mobile application development company and it will also help you in monetizing your mobile application.
wanna know more about us? Contact SYSPOLY app development company.