Complete Guide on App Monetization Models & StrategiesRatna Technology
Technology has taken over our daily activities in multiple ways. Businesses witness regular transformations to ease up complex operations and grow revenue. Among them, mobile apps have proved to be super helpful. Organizations having their own mobile apps are a step ahead of their non-app competitors. Some business owners become hesitate to have an app and are unaware of money generation techniques from these apps. To let them understand how they can earn money from their products built by a reputable mobile app development company.
What Is Mobile App Monetization?
Simply mobile app monetization is the process of engaging your user base through app and influencing them to have your services mentioned. While creating app for a client, the development companies think of various angles to help in monetizing.
App monetization falls under two categories such as direct and indirect.
In direct monetization, money is earned directly from the app. Let’s say – whenever an user installs the app from App Store or Play Store and makes any in-app purchases, the app owner gets money straight from his/her app. Direct monetization is the revenue one generates by implementing an app monetization model.
On the other hand, indirect monetization is very common among mobile app products where apps appear or pop up within the free apps. The owner earn from the product irrespective of its usage.
Proven Methods To Generate Revenue From Mobile Apps
Monetization is the primary talk of the blog. Have a look at the following money generation techniques through mobile apps.
- Sponsorship Model
Sponsorships are effective to boost your profit-earning considerably. The first step of this model is to look for a prospective partner with a similar user base that can add a great user experience and value to your app.
Partnerships can bring in incredible benefits to your business especially when you create a reasonable experience by thinking about the improvements and logistics together to provide mobile analytics. Brands having a substantial user base offer you payment for a unique ad in your mobile app and market content related to it. It results in engagement and retention paving door for you to hike revenues by taking your portion from the redeemed rewards that these brands provide your users via in-app activities.
- In-app Purchases
This monetization strategy is most popular which involves both free and paid apps. Using the model, users can purchase a list of digital products. Let’s say – game fanatics invest money to get access to next level, coins, premium features and much more. The in-app purchase model needs the free version to be super effective and working. This in-app purchase is used to improve the user experience.
Advertisement is the best way for money generation. In mobile app case, the ad becomes a bridge between advertisers and users. Marketers in general create three types of ads as follows. Notification Ads: Such ads are appeared as pop-ups and can make the users aware of their purposes. Most people find them disturbing but they are quite effective.Video Ads: As the name suggests, the ads come through video format online. These ads have the more potential for better engagement and make an impact in overall performance. Interstitial Ads: This one is known as full-screen ads and is displayed in the app’s flow moving through the menu. Banner Ads: This stuff is a kind of online ad usually found at the top or bottom of the device screen. Yes, they undoubtedly annoy the users; still they are most sought in case of brand promotion.
- SMS & Newsletters
This model is the best way of monetization to connect with the audiences by constantly sending alerts on discounts, contests, promotions, reminders, and much more. Short Message Service (SMS) enhances user engagement and strengthens your brand by convincing users to check out your mobile app.
- E-Commerce App Model
This monetization method is very simple and effective one. It enables you to sell your physical products digitally through your app. Developing an app focused on the e-Commerce models and techniques blending with content-based brands yields better profit margins.Today we all know how online stores influence users and deliver exceptional user experience. This is why you need to ensure users that the online purchase is fast, secure and easy so that they would keep using your app when they need.
Now Decide, Are You Ready for Mobile App Monetization Model
The mobile app industry is flourishing and would keep the momentum in future too. With billions of smartphones worldwide, mobile apps industry will only expand with time. Therefore, if you have plans to develop an app and monetize it using the above app monetization model, do not hesitate to connect with us. Our app expert team would definitely guide you.