App Monetization Strategies: 5 Ways to Effectively Monetize Your Mobile App

When it comes to revenue generation from mobile apps, you need to deeply dive into the app monetization strategies. Here we have listed the top app monetization strategies that are generally applicable to various types of apps. You can choose the right strategy and choose the best mix of mobile app monetization techniques as a hybrid for your mobile application.

With any monetization strategy, it’s important to consider how it might affect not just your app’s growth potential but also engagement from users. Some mobile app monetization strategies may be more effective than others in terms of generating revenue. It’s important to find a balance that works for you and your app so that you can continue growing while still providing a good experience for users.

Depending on the type, characteristics of the mobile app, and the persona of the target audience the app developer or owner can choose the right mobile app monetization model.

Here we are discussing the 5 proven mobile app monetization strategies that can help you to increase your ad revenue by up to 200%.

1. In App Advertising

If you aren’t including ads in your app, you might be missing out on a phenomenal opportunity for monetization.

Digital advertising through mobile apps has improved the communication between advertisers and consumers dramatically. This is largely due to the crazy amount of time people spend on their phones. We’re talking at least 90 minutes a day — the equivalent of 23 days a year.

And a lot of the time, people simply don’t want to pay for the apps they spend all that time on. The temptation to download an app that costs $.99 drops away as soon as they see a cheaper (or free) alternative.

2. Sponsors and Partnerships

If you can secure a partnership with another brand, you can significantly step up your monetization game.

What you’ll need to do is find a partner with a similar customer base who can add something to the experience of your users.

A partner or a network of partners can seriously benefit your customers and your businesses alike, especially if you create an integrated experience — like when Localytics and Optimizely partnered to deliver mobile analytics as a combined service.

Imagine users on another app who see your brand logo, and maybe even an interactive element typically found in your app appearing as part of the app they’re currently using. That could potentially convince them to go download your app.

And if your partner includes advertisements featuring your apps, there’s a solid chance their users might click that ad to go straight to your app. This is called a click-through rate (CTR), and in some instances, it can be as high as 12.5 percent.

So, once you’ve opened yourself up to the idea of hosting and sharing advertisements, definitely consider forming partnerships to strengthen your brand outreach.

3. In-App Purchases

Most app downloads are unpaid, but that definitely does not mean the users never have the opportunity to spend any money within the app. App purchases are the solution.

In-app purchases help you make as much money as possible off of your otherwise free app and allow customers to actually interact directly with your product.

This is a huge part of so-called “freemium” apps (typically mobile games) where users pay no upfront cost but pay for gated features, but any business can make use of this strategy.

Your business can choose to provide users with the opportunity to purchase your products directly from the app (in the case of physical items) and have them shipped. Or, if you’re a business that offers services, users can even opt for in-app billing.

The downside of in-app purchases is that developers walk a fine line between giving too many options for free and offering too few features. So, be mindful of that if you choose this monetization method.

4. Free/Premium Versions

As mentioned before, “freemium” apps cost nothing to download, but they typically include in-app purchases that make money for the developer.

But there’s another method of generating revenue — creating an entirely separate version of your app with features that add up to a more complete experience.

Having a free/cheaper version allows users to get a sense of what your app can do for them.

Think of it like a teaser. Soon, after using the free version of your app, your customers will realize that the app can serve an important role in their lives that they simply don’t want to live without.

Then, if they enjoy what your app offers and want a better experience, they might be willing to pay for the premium version.

5. SMS Marketing

By using in-app prompts similar to the ones used for collecting email addresses, you can send notices for app updates, reminders, contests, and promotions straight to your users’ text message inboxes. This marketing method is one of the more effective ways to strengthen your brand because it drives users back to your app.

Conclusion

By this point, you’re well aware of how awesome a mobile app can be for your bottom line. It can allow you to expand your brand and make connections with customers you might never have reached before. And as you’ve seen in this post, it can also be a considerable source of revenue.

All app developers need to find the best app monetization strategies for success. The right app monetization models for me and my app might not be the best app monetization methods for you and your app.

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