Let us begin with a basic question. Why does one decide to build an app? Well, obviously it is for-profit or business conversion or branding that one builds an app. Naturally, monetization is a key concern for any app development project. But not all apps are successful enough to run like a business and make consistent earning.
On the other hand, the vast majority of the digital time now is spent by users on mobile. So, there is no dearth of audience attention and earning opportunities with the mobile apps. But the majority of audience attention and app revenue goes to a handful of apps that lead in every category. This is where a mobile app development company scratches its head in trying to find something to beat the competition.
The question is how with a new app you can just start making money right away? Well, it is not impossible since there have been several great apps that became quickly successful and turned into a global sensation in their respective categories.
Let us offer here some useful tips and monetization ideas to help your app start earning money right away.
Let the App Offer a Unique Solution to a Demand or Problem
Apps unlike websites and blogs come primarily as useful solutions for real-life contexts, problems and address some kind of burning demands. If your app doesn’t offer a solution to any problem or doesn’t address any demand, it is very unlikely to be popular and financially successful.
On the other hand, just offering a solution is not enough. The solution must be unique and useful enough in the real-life context of the users. Just think about a leading app like Airbnb or Uber and you get the answer. Yes, at the time of launch these apps offered a truly unique and never-before solution to some burning demands. It can be a simple mobile game but it must address the need that its audience perceives for quite some time.
Free Apps vs Paid Apps
Now let us come to the mobile app monetization strategies. Grossly considering, you can either opt for building an app that comes with a subscription fee or an app that can be downloaded and installed without paying any penny.
While a paid app has great potential to generate revenue just because every download brings you money, it may not get enough download numbers to ensure profitability. A free app on the other hand can generate good traction and depend on the value offerings and user experience it can convert business and generate revenues through other in-app monetization methods.
Paid apps are only ideal if you already have a great brand value followed by a loyal customer base who finds your solutions irreplaceable in their life. For all other apps trying to make money through app marketing, the free app option is better.
In-App Purchases
One of the most popular and the leading app monetization strategies for the vast majority of app projects is the in-app purchase. This monetization method is particularly effective for all apps with a multitude of feature options and customization options for the users.
By using this approach you can keep certain features freely accessible while making users pay for advanced or additional features and certain user experience attributes. These advanced features and additional value that can be offered against a price may include passes to new game levels, game characters, extra features for audio and video media, additional features for remote collaboration, etc.
Let us have a quick look at the key advantages of In-app purchases as a monetization method.
- This method makes sure that the basic app remains free for use while monetizing only a portion of the app or certain features. Thus it ensures offering value for everyone.
- This monetization method involves the least risks as all users can freely use the app without any constraint.
- If the basic user experience and the core value proposition of the app can be engaging, the in-app purchases can generate good revenue.
- This model actually can strengthen the customer loyalty of users over time and can influence them to make a purchase when they are already engaged with the app.
Many leading apps and games have been tremendously successful by utilizing g this monetization model.
Monetize App With Ads
In-app ads offer another successful and popular app monetization method for many apps across the niches. Thanks to in-app ads, the entire app can remain free to use. The success of this monetization strategy largely depends upon the choice of ads that should meet the demands and sentiments of the app users.
Some of the key advantages of in-app ads as a monetization method include the following.
- Thanks to in-app ads, the app remains completely free for the users.
- Setting up ads involves negligible efforts.
- In-app ads can help generate consistent revenue from existing app traffic.
- There is a lot of creative scope of featuring user-focused ads to lure the users.
The only constraint of this monetization method is that it may not get enough ads or traction with ads unless your app becomes a well-known and successful one.
Rewarded Video/Audio Ads
Finally, the incentivized media ads deserve a special mention because of their popularity as a useful and effective monetization method. Many mobile games already utilized this in-app ad strategy to garner revenue. Just by seeing an ad a game player can continue playing or can get some extra coins or additional lifeline.
Spotify ads are also great examples of using this method. By seeing an ad you can get free access to a lot of music that is otherwise not free. On the other hand, they also lure users to go for a paid app version to enjoy music without needing to see ads.
Conclusion
When it comes to app monetization, you cannot choose a method blindly without considering your audience, the competitors, and your potential to draw attention. On top of that, to make your monetization successful, you need a great app that just makes enough sense for the specific user needs.
