5 Ways to Monetize Your Mobile App
The primary concern in any mobile app developer is app monetization You should always plan on how you intend to monetize your app. The number of mobile apps on demand has skyrocketed due to popularity in mobile use. What makes many people prefer mobile phones over desktops to access the Internet is their convenience since you can access the net anywhere.
Traffic brought by mobile phones surpasses those from desktops. This has made many digital marketers shift their focus to mobile apps ideas. Either way, developers will eventually decide how they want to monetize their mobile apps. As an app developer, you can decide to use the freemium, in-app ads or other models.
This is a lucrative venture if you are planning to enter the mobile app development sector. Research carried by Statista reveals that the global app revenue went up from $69.7B in 2015 to $88.3B in 2016. This number is expected to increase further to a whopping $188.9B by 2020 as predicted by experts. What does this mean for developers who are planning to monetize their apps? To help us answer this question let’s discuss the average mobile app revenue stats per user.
According to SmartyAds data, an average user will spend $20.01 per month on a freemium model app. It further states that only 1.2% of users commit app purchases. In-app purchases, on the other hand, generate $0.49 per user monthly. For subscription apps, an average user will spend $6 to $19 with a conversion rate of 6.98%. Organic users generate better income than non-organic, as well; IOS users pay more than Android.
To make substantial revenue from apps, you need to choose an appropriate method to monetize it. This post will give you 5 effective methods of mobile app monetization and is up to you as a developer to choose which one will work for your business model.
I am sure you used streaming services and you know how subscription-based app monetization model works. It follows the principle of downloading an app for free, get a free trial, and paying monthly, quarterly or yearly as subscription fees. This method is regarded most reliable revenue streams for apps since customers will have to pay in periods stipulated to enjoy the app’s services. Other methods like freemium, in-app purchases and pay per download plans mean occasional payments, making it sporadic. This is a smart choice for developing, and programming in 2020 content-oriented brands like Spotify, The New York Times, or Google Drive. It is not a good monetization option for single-purpose, gaming, and shopping apps.
This type of app monetization presents a user with two options which are getting the basic functionality of an app for free or accessing specific in-app items, content, or feature. Although the subscription plan is viewed as an in-app purchase model, the two methods have distinctive characteristics. When users pay for subscription apps, they get complete access to all the features, while in-app purchase, on the other hand, gets you one-time access to the features or one item. This is a perfect choice for developers who develop gaming apps. You should know that Google and Apple cut off the share of 30% for each in-app purchase. This should help you come up with a reasonable price when deploying your apps.
This method of app monetization involves a free app having a premium version of it for an extra fee. Just like what the name suggests – Free + premium = freemium. Although it offers limited features, it doesn’t make its free version useless. When choosing this monetization option for your apps, try to strike a balance between giving out too little and too much. The free version needs to have enough features to reel in users. The premium version of the app should give users value for their money or they will otherwise they will get comfortable with the free version.
Of all the methods of app monetization, the in-app advertising revenue model is the most versatile solution. Reason being that you can implement it alone or combined with all the above options. Users download can freely download the app with a condition of watching or displaying ads from time to time. Developers generate their income from selling ad inventory to other companies. To maximize your apps potential the best combination is between freemium with an in-app advertisement. You only have to strike between the two to make the most of them.
It's every developer’s wish to mint money out of their development and these five monetization models for mobile apps provide a good opportunity to do so. However, there is no one-size-fits-all solution. You need to develop a strategy and research on the industry you are operating on to get desirable results.