The best app monetization strategies
Choosing the right monetization model has always been an issue for mobile app developers and marketers. The high competition in the mobile market requires more substantive approach. From the very beginning, it was not so difficult to make huge revenues from a mobile application if you had a brilliant idea of a digital invention. Imagine you think of an exclusive project, something special, that is in demand. People want to try it and you can easily get a lot of installs.
However, with the rapid development of new technologies and the growing competition, the goal to win your audience becomes more complicated. The overall number of applications in the stores increases but the percentage of really successful business stories is low.
How to make the right choice?
Selection of monetization strategies is a crucial part of the mobile marketing plan. You may create an application that is valuable and meets the customer’s expectations but fail choosing inappropriate model of monetization. In this case, you’ll get a lot of downloads but the application won’t bring revenues.
Let’s consider some popular schemes of making money from an app. How do they perform? Which of them are the most effective?
Pay Per Download
This way of monetization is the easiest one. You set a price that users should pay for download. Your profit depends on the number of these downloads. At the same time, it is difficult to attract customers and keep them engaged.
This model works well when your application has some valuable and exclusive features. Your invention must be unique. Study your competitors and try to offer something that others cannot. In this situation, people are more willing to pay for an app install.
If users already know your brand that’s a great advantage. Maybe, you have created several successful digital products, people know these apps and like them. The user’s loyalty is very important.
That is the most popular method of monetization. People should pay for access to an interesting content, some features of an app, buy products or services, virtual money, extra game level, etc.
The main goal of a marketer, in this case, to find the balance between free and paid app features. The users can install an invention for free and then purchase additional offers. These offers have to be valuable for customers. Think how you can attract the targeted public.
Another way of monetization is advertising. Using this model it is important to define the appropriate number of ads, their placement, and quality. In this case, the application remains free. Make your commercials relevant. They should match your app category. This type of monetization is a good idea for an app that has no content, useful features or anything the users are ready to pay for. The ads become the only source of revenue for an entrepreneur.
Freemium and Subscription
Such patterns are combinations of free and paid applications. People install them for free and then get paid access to additional functionality (app features or content). That provides some benefits for potential customers. They can try an app before making a decision to use it for a long time. Subscription monetization model works better for content-driven digital inventions (music or news applications, and so on).
Experts claim that free apps are commonplace. Pay Per Download monetization model becomes less popular. According to recent trends in the digital marketing, better to use hybrid monetization patterns instead of relying on a single one.
While we work with pretty much all app categories