Apps developing teams are striving to offer a unique profit to their customers and reach a competitive advantage. They consider well-matched mobile apps monetization to be the core go-to-market approach. Monetization for mobile startups is a good money-generating tool that can bring your company additional income. Let’s talk about the most efficient ways that are currently trending to monetize your apps.
Imagine, Sam owns a product-thinking team who has put back to developing a mobile app. A lot of features, a user-friendly design, and a really innovative approach to messaging. Sam’s team went to really considerable lengths and thought about great outcomes. But the news about a brand new app didn’t reverberate. Users installs brought neither success nor money. The team who has put so much time and energy into the app got simply frustrated. What if Sam thought about better marketing strategy and monetization from the very start of planning the marketing strategy and brainstorming matching ideas?
How to Choose the Most Fruitful Idea?
If you don’t want it happened that you adopt Sam’s experience, think of the profitable ways of monetization before you start developing an app. Before you are getting started think of the best approaches to monetization that might fit the product under development otherwise a wrong choice can be a bad influence on customers experience.
Here are the basic factors that you should bear in mind when choosing the right monetizing strategy:
1 step: Determine the target audience (conduct some marketing research and figure out your users gender, age, user behavior, content preferences, etc.).
2 step: Finds a set of users sharing common needs and target them first.
3 step: Develop a product according to the needs that the target audience has. Focus on features which will be useful to people who will use the app.
Below is a helpful list of all actual ways to monetize your product.
#1 - Advertising
The main advantage of advertising is that you don’t need to make your mobile app paid. According to Appodeal 2017 has brought us the following set of most trending ads for applications:
- Rewarded Video - In-app rewards to users for watching video ads.
- Banner - Marketing classic that demonstrates a piece of the ad at the bottom or top of the screen.
- Rich Interstitial - Playable or static advertisements that grab user’s attention by covering the entire screen.
- Video Interstitial - Video covering the entire screen that you can or cannot skip.
According to Appodeal’s report, video interstitial type of ad used for mobile monetization was the most profitable in 2017.
Who will get value of using this type of monetization?
- Developers of non-paid apps.
- Apps without in-app purchases.
- Those who know their target audience and monitor the changes in behavior of their users.
#2 - Paid Downloads
App Store and Play Market offer excellent selling opportunities for iOS or Android products and that’s how some teams monetize their apps. The main disadvantage of this method is that your app must be very competitive and bring strong value to customers to be paid for the download. Today’s market of apps development is rich of various applications that can be installed cost free.
Who might use this type of monetizing mobile apps?
- The companies who have powerful marketing strategies.
- Products that offer something valuable and unique.
- Apps with reasonable prices for downloads.
#3 - In-App Purchases
You may build a free for downloading app but it will contain additional purchases. That means that you will make money when your customers buy virtual products directly in the application, for example, new levels of games, particular items or currency, etc.). Such kinds of monetization are implemented mostly in mobile games. Your design and marketing must be at the highest level to attract great amounts of users and make them pay for new options and functionalities.
Who might make a profit?
- You have developed a game, a retail online store, or provide some services online.
- You can offer a set of options that are different from those other apps provide.
- Your app demonstrates an excellent user experience.
#4 - Freemium and Premium
Everybody has at least once experienced a case when you were offered to upgrade your account to premium and get some additional options. What is freemium then? Freemium is a kind of business model that offers shareware programs. You may try to play a mobile game, for example, while an extended version is available only once you paid for its update.
Who can benefit from using freemium as a way to get paid for your app?
- You offer a lot of new useful features with signing up for premium.
- You have developed a great subscription plan with a variety of price options.
- You provide extended information or content at affordable prices.
#5 - Subscriptions
Information is currently the priciest goods. Subscriptions as a method to monetize those apps that are valuable for their content such as news, music, or videos. Users can get a certain amount of content for free while getting a full access can be bought. For example, Netflix can be watched for free during 1 month after which you have to pay a subscription fee to view more videos.
Who should develop a subscription plan for their apps?
- An app provides compelling content.
- Your application encourages people to use it frequently or permanently.
#6 - Partnerships and Sponsorships
Sponsorship and partnership are relatively new methods of monetizing your apps. If your app has a fast-growing audience or community you may benefit from integrating your partners offerings into your app. To boost their sales most brands search for innovative opportunities to promote their goods and services. Your app may become the right place for additional marketing.
When to choose partnerships?
- Your app can make a boast of a huge number of users.
- Your audience fits the needs of some particular brands.
#7 - White Label
White label is the concept allowing to produce products or services that can be used by other companies under their brand. White label code is the same thing when your developers produce a clear code that makes a mobile app easy to develop and effective to promote for others who will pay you for using this code.
When is there sense to license the code?
- Your app is developed in powerful code.
- You are ready to share the experience with other developing companies to make money.
#8 - Upgrading to Use Without Ads
Oftentimes ads make us nervous and anxious by interrupting us viewing videos or playing games. You might have seen these annoying pop-ups saying that you must read this shocking news. A lot of users upgrade their apps to make them free of any kinds of advertisements. This way of monetization is quite effective when you have a lot of repeat users who can’t live a day without opening their favorite app.
When to prefer this method to others?
- You have a huge audience which values highly your content.
- You are confident that your app is very popular.
#9 - Promoting Your Website
Own a site that offers some goods or services, for example, an e-commerce store or an online booking system? You could build your own mobile app in order to promote those products you sell. You will cut the costs for other kinds of marketing while you can use your app as your own free promotional tool.
Best suits for:
- Those who own online businesses that sell something.
- IT companies that are able to develop a fast and cost-effective app for their own needs.
#10 - Mixed Ways
You can effectively combine two or more ways of apps monetization, and probably it will work. Be sure you know how these methods intercommunicate and affect each other.
Think of a brilliant marketing strategy and ways of monetization prior to your app’s launch. Don’t let your ambitions and emotions get best of you! As you see, there are dozens of paths you can choose not to build your project blindly with the hope that it will make a hype.
To sum it up, we can say that the most profitable ways of monetizing are video interstitial ads however, the others are not less profitable and efficient. Note that you need to choose that way which best fits the mobile operating platforms an app will run on.
Sannacode is design and development company, specializing in unique mobile apps for you and recommend you the best go-to-market strategy. Contact us to learn more about the top profitable methods to earn money with your startups!