Mobile app monetization allows developers to generate revenue from app installs by effectively leveraging the user base. This strategy can be fulfilled with the help of different methods, including paid apps, in-app purchases, and advertising. However, these monetization strategies come with risks, such as potential violations of user data privacy by third parties, excessive advertising that can overwhelm users, or intrusive pop-up banners that detract from the overall user experience, especially on smaller mobile screens.
In this blog, we are going to discuss about why monetization strategies are crucial for app success, some of the most popular mobile apps for business monetization, and how to choose the best mobile app monetization model for your app.
Why are monetization strategies crucial for app success?
Monetizing strategies bring prosperity to apps as they enable revenue generation, sustainable business models, and foster innovation. Most apps are free to download, but their developers must develop other ways to monetize them. Monetization strategies make it possible for apps to generate revenues from their users.
Success in monetizing is helpful to entrepreneurs in developing sustainable business models through which entrepreneurs can meet with long-term growths. A good monetization strategy could provide the much-needed capital to invest in innovation, research, and development.
Popular mobile app monetization models
Some of the popular mobile app monetization models are mentioned below:
In-App Purchases (IAPs)
Whenever an application is developed with some additional features or content in the domain app beyond the initial download cost, then this term is popularly known as the In-app purchase monetization model because it allows the development team to generate more revenue through this method.
The main objective of developing IAPs is the transaction made by the user within the app once the download is finished. If the user wants to unblock different features that can enhance the app’s functionality, then they are free to unlock premium features, levels, and capabilities that can enhance the overall user experience.
For example, we have seen many games, such as Valorant and Battle Ground Mobile India, previously known as PUBG. These games offer or sell virtual goods such as gun skins, character skins, and in-game currency to improve gameplay and enhance the overall user experience, also helping to generate more revenue.
Benefits of using in-app purchases
Some of the major benefits of using in-app purchases are mentioned below:
- Flexible: The user is able to make any changes according to their preference and experience and their willingness to pay for the app by using in-app purchases. Users mostly prefer using in-app purchases because it lets them buy whatever they are willing to pay for, not something that requires them to pay for a full-featured app upfront.
- Increased revenue: Developers can tap into current revenue streams and turn one-time payments into the regular income model, effectively enhancing overall revenue.
- Engagement: In-app purchases can enhance user engagement on your application if it is developed and built properly.
Subscription model
One of the best monetization strategies for mobile app development that allows users to access any premium feature, content, or service in exchange for a minimal fee that can be charged on the basis of a subscription monetization plan is widely known as the subscription model.
Here, users can pay for the services monthly or yearly. The model is totally different from a one-time purchase model, where users have to pay a fixed amount for a lifetime subscription. By offering different subscription tiers or free trial periods, developers can attract a broader audience and create a more loyal user base, ultimately leading to higher retention rates and long-term profitability.
Sponsorship and partnerships
Sponsorships and partnerships benefit both the app owner and advertisers by helping them achieve their goals. App owners are responsible for offering ad space on their applications and leveraging their user base to provide targeted traffic to advertisers. Conversely, advertisers are responsible for paying the basic fee to display their ads, gaining access to a specific audience that aligns with their marketing objectives. Thai allows the advertiser to enhance user engagement, convert leads into potential customers, and drive more sales by this method.
Affiliate marketing
Developers can earn commission by promoting products and services from other companies. This monetization strategy is widely known as affiliate marketing. The affiliate markers are nothing but famous people who can influence a vast majority of people by introducing any product and service features, advantages, and benefits.
Companies collaborate with affiliate marketers to make their products visible to their target audience, drive more sales, and convert leads into paying customers. App owners can partner with various companies and integrate affiliate links or codes directly into their apps, enabling users to purchase products seamlessly. When users click on these links and complete a purchase, the app owner earns a commission, creating a revenue stream without needing to manage inventory or fulfillment.
Best platforms for mobile app monetization
Some of the best platforms for mobile app monetization are discussed below:
PubMatic: Pubmatic is a global technology company introduced by Indian-American brothers Rajeev and Amar Goel in 2006. The main aim of developing PubMatic is to connect both publishers and advertisers. One of the most important services they offer is programmatic advertising, wherein real-time bidding is employed to help publishers reach ad buyers efficiently.
Using their sophisticated programmatic ad transaction software, PubMatic can make ad monetization for app placements effortless with strict care for the user by giving users the ability to opt out of having personal information collected. It will benefit the user by providing more control over their information, hence gaining trust. It will help advertisers target their audience and publishers to maximize revenue.
InMobi: InMobi offers a rich bouquet of services to its customers, mainly publishers, in order to help them gain and increase revenues through maximum engagement. The company offers HD video and ads built on native technology that enables super-fast, buffer-free, high-definition video experiences to result in better completion rates and higher engagement. Additionally, the non-intrusive ads offered by InMobi are designed so that they blend into the design and layout of an app for a great user experience.
Google Ads: Google Ad offers a wide variety of services to its customers, allowing them to create and display a multitude of ads across Google’s network of partner sites and mobile apps. It offers different formats of ads, including search ads, display ads, video ads, and app ads, all of which could be targeted towards specific audiences with the help of keyword, demographics targeting options, location, and device targeting options.
This feature alone makes Google Ads worthwhile because it includes detailed analytics and reporting tools to allow users to track the performance of campaigns and make data-driven decisions to optimize ad spend and improve returns on investment.
App monetization best practices
Understand your target audience and determine a mobile app monetization strategy that best fits your target audience. While subscribers to a productivity app may respond well to a subscription-based model, other audiences may not. Balance user satisfaction with mobile app revenue generation. Consider how to improve the user experience while still creating revenue. For example, you can have a freemium app model with basic features.
You could also have a freemium using a simplified / basic feature to give the user an idea of what you are but then allow them to upgrade to paid. There should be a good onboarding experience so that the users get the maximum possible value from the app. Use A/B testing and other methods to experiment with different monetization strategies and measure their impact on user response and revenue. Create multiple streams of income. Consider using a combination of ads, in-app purchases, and subscriptions to create multiple income streams.
Mobile app monetization forms a critical part of an overall business strategy, and more than anything, it just cannot be ignored. Based on their knowledge of the different monetization techniques and best practices available, businesses can thus develop effective strategies driving revenue, growth, and customer engagement. As the mobile app market grows daily, and one needs to update oneself with ever-changing market demand and customer needs, businesses must stay ahead of the curve.
Fastcurve is an IT company that can help you monetize your mobile application using various techniques. We provide the best mobile application development, custom software development, and web app development.
FAQs
What are the best mobile app monetization techniques in 2024?
In-app purchases, subscriptions, affiliate marketing, paid apps, and in-app advertising will be the best mobile app monetization techniques in 2024. These methods can be used singularly or together to generate revenues from mobile apps.
How to Monetize a Mobile App?
Monetizing a mobile app can be done using in-app purchases, subscriptions, affiliate marketing, paid app models, and in-app advertising. The strategy selection relies on the app’s relevance, the target audience, and the end user’s experience.
Which monetization model works best for mobile apps?
In-app purchases are the most effective monetization model for mobile apps, accounting for about 48.2% of all mobile app earnings. However, the best model depends entirely on the app’s purpose, intended target market, and usage experience.
How can I get more revenue from in-app purchases?
Boost In-app purchase revenue with discounts, promotions, and loyalty programs. Developers can employ various strategies to optimize and maximize revenue from in-app purchases. They often depend on analytics to better understand user behavior and streamline the in-app purchase experience. At times, they resort to paywall A/B testing and experimentation solutions to craft the best copy, design, and price points for subscriptions.
