In a simple sentence - app monetization is the process of converting your app’s users into revenue.
This process involves several strategies. Certain apps are better suited to specific app monetization models than others. Some apps focus on one particular area of app monetization, while others incorporate multiple different aspects.
App monetization is crucial because it has become common for apps to be free at the point of installation. Developers must shift their revenue model to generate cash flow after download. It is important to ensure that two things happen:
The app generates growing revenue.
Users and user experience remains relatively intact.
Experience is another critical factor to have a successful app monetization strategy because revenue requires happy users.
So what app monetization strategies are there?
In-App Advertising
This strategy is the most popular amongst app owners. Its benefits are that it is quick to implement and is a simple app monetization process. Banner, interstitial, native, affiliate, and reward ads are all different types of advertisements that can be placed within your app.
Subscription and the Freemium Model
Several apps are now using subscription models as a way to generate app revenue. A subscription model means that users can initially download the app for free, then get access to some or all features for a set amount of time. Once this period is over, they will need to pay a recurring fee to keep using the app’s features. In some cases, this app monetization model can bring in a significant amount of revenue and significantly drive engagement.
Data Monetization
A large app audience can be valuable for several different reasons. Whenever a user interacts with your app, they generate a form of data. This information is then anonymized and quantified, providing specific insights into user behavior. Revenue from user data has become commonplace in several industries. By utilizing this method, developers can hold onto their beautiful user experience as this monetization strategy operates in the background.
Virtual Currency
One way in which app developers have tapped into a new way of acquiring revenue streams is to provide users access to virtual currency. This currency is purchased with real cash and can be used for various means within the app, such as getting ahead in a game or redeem certain features that would take longer to unlock.
Physical Products or Service
If your mobile app is a subset of your business, then in-app purchases are going to be a very big part of your app’s income. Users can quickly pay and use the built in payment structure.
The App Bros
To keep users happy, creators will need to find the perfect balance between experience and monetization. It's never too early to plan your mobile app monetization strategy, and The App Bros can help you create the app of your dreams.