Top Mobile App Monetization Methods

Downloading of Free apps have always outnumbered the paid apps, whereby making them more profitable. Raising the doubts and questions regarding the feasibility and profitability of the paid apps. Even though the percentage of paid app revenues have decreased considerable to 37.8 % from an earlier 75.9%, we need to understand that the mobile app market is still worth billions of dollars.

The experts have also predicted that from 2016 to 2020, the global app revenue is expected to double!

So, if you are developing a mobile app and are wondering how to make money out of it, then you need to understand the different Mobile App monetization options and mobile advertising strategies to generate maximum revenues from your App.

Mobile App Monetization Options

  • Advertising

Mobile App advertising is the most common and easiest option to implement, and it can be done through third-party mobile ad network. 7 out of 10 free apps providers used mobile app advertising as their revenue model in 2016.You just need to display commercials and promotions inside your mobile app and get paid from the third-party mobile ad networks for the same.

You will be paid each and every time the ad is displayed, per click on the ad, and whenever a user installs the advertised app. There are mainly 4 types of ads which are displayed by the app developers for mobile app advertising: Interstitial ads, Banner ads,In-app video ads and Native ads.

  • Subscriptions

Subscriptions are also a very important monetization strategy. App publishers offer free content in their apps for a limited period and then after the stipulated period is over, the users are charged a subscription fee which will allow them to access full content of the app without any restrictions.

  • Selling Merchandise

A very innovative approach can be to sell merchandise on your free app. Most of the ecommerce businesses build free apps for selling physical goods like toys, shirts, shoes, etc. through the app or through email marketing.

  • In-App Purchases

In-app purchases are directly made from the app, these purchases are made normally for accessing special contents or features which are restricted. Generally, this is an interesting model to convert non-paying app users into paying users without being too obviously intrusive. Although, the developers have to keep the users hooked to their app, so they keep paying.

  • Referral Marketing

Referral marketing comprises of promoting a third-party product or service on your app in order to optimize mobile app monetization. App publishers can promote or sell their associates’ products or services depending on the number of clicks or installs received. Pop-up adsare generally used to promote someone else’s app or advertise products on a mobile app.

  • Collecting and Selling Data

It is a well-known fact that apps collect a lot of users’ data, like demographics, user behavior or other app usages. These user behavioral data are in huge demand for research purpose in different fields. This gives the publisher an opportunity for app monetization, they can sell their users’ behaviorioral data to these researchers and generate very good revenue. The data generally contains users’ email addresses, social media accounts, and their personal choices and likes.

Looking at the various options and models available for your mobile app monetization, it is important that you should take app structure and target audience into consideration before choosing the strategy. For developing a perfect app, developers will also be required to select the right SDKs – Software Development Kits.

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