Top 4 Practical and Most Effective App Monetization Strategies
Before you launch an app on the app store, you have a lot to consider the app monetization strategies so that you may make your app the best fit. Most of the people think that they can make money by charging a fee from their customers to download their app. But this is not true in today’s scenario. There are highly rated apps in this world that can be downloaded for free.
Let us see some of the app monetization strategies for free apps:
1. Decide the best platform
Choosing the best platform for your app may earn you a great potential and market penetration. In this field, Apple’s iOS platform is on a leading position with over 25% of its developers earning around $5000 a month.
2. Understand your market
Before you decide which app monetization platform you want to use, you should first study your market. It is important to understand how your monetization model would fit in with your app because different demographics will have a different impact on the market. Your strategy will also differ with respect to the type of industry your app is serving. You shall also conduct research into the competitor apps and analyze their app monetization strategies.
3. Generating Ad revenue
This is the easiest and amazing way to bring revenue to the app. Advertising can generate good revenue for your app as well as can get you views & actual conversions. There are a number of advertisement strategies like,
- Banner Ads- This is the most common way of advertising we have witnessed in our daily lives. These ads are usually displayed on the top or bottom of the screen as rectangular banners. These are easy to design and create.
- Interstitials Ads- It is better than the Banner Ads due to its ability to cover the whole screen and it’s better designed. Since these ads utilize the whole screen, they compel the user to act or think on it after reading it. This, in turn, increases the clicks and downloads of the particular app and ultimately generates revenue for the company.
- Native Ads- Native ads are advertising formats which seem to blend with the app’s visual look and overall feel so it doesn’t look irritating to the user’s eye. It leads to higher involvement of the user.
- Video Ads- These ads receive a higher level of user engagement and just like the Interstitial ads, video ads take up the whole screen too. Typically, a video ad can last for 15-30 seconds and is capable of communicating a powerful message to the consumers.
4. In-App Purchases
This is another platform to generate revenue for your app as it is kind of a sales channel. In-App purchases are not only limited to just retail but also consist of a variety of consumer goods. Even though the in-app purchases are given inside the app, the app store still controls the purchase including the billing. This whole process is seamless and more convenient in order to deliver significant revenue returns.
You have to understand your user’s behavior and his base, in order to determine an app monetization strategy. To develop a good app monetization strategy, one has to consider clever, highly targeted and relevant plans of action. The best strategy is when it doesn’t disrupt the overall user experience and allows you to generate a recurring revenue for your app.