There are over 7 million apps available across the Android and Apple platforms. Some say that whatever you dream of, you can find in the form of an application. With many categories and types covering almost every aspect of life. This has, for sure, changed the way people view and live on a daily basis. As everyone adapts to change, the number of mobile application users continues to increase daily. They reached roughly 6.65 billion users worldwide with 4.48 hours spent per day. Clearly showing how applications have become an essential part of users’ lives. As that number continued to rise, this large number of users appeared to have great potential. App owners began to wonder, “How can we benefit from this?” or, in other words, “How does making money on apps work?”
So, how exactly can you do this? The answer is app monetization. Follow this article to get an in-depth guide to app monetization and how exactly you can make money through apps.
What is App Monetization?
The term is pretty much self-explanatory: app monetization is generating revenue through your app.
Reasons to monetize an app are varied and differ from one person to another. The most common reason found among all is to support the app and develop it even more, as it is practically crucial to offer the app for free. The app business as a whole made $400 billion in revenue despite the fact that 95% of apps are free to download. It is expected to reach even more (an estimated $407 billion) by 2026.
How to Monetize your App?
The first thing to consider about monetizing your app is your target audience and which types of users are present on a daily basis. Not every strategy can fit your users. You ought to think first about their experience and how they may interpret your monetization strategy. Some can find it very useful, and some can think the opposite. Let us walk you through the monetization strategies available to see which can fit your users’ needs best.
App Monetization Strategies
As the competition increases, the number of strategies increases and comes to light. And as of right now, who knows how many are in development?
1. In-App Ads
You’ve probably come across them on a regular basis; they’re literally everywhere and embedded within most apps, and most users prefer them nowadays. They are usually better used in e-commerce, entertainment, news, and gaming apps. When utilized in the right way, they are relevant and offer value. In-app advertisements can have a great impact on the revenue generated, as they can increase the number of users. However, when utilized the wrong way, it’s an absolute counter. It can be a source of annoyance that only causes frustration and leads to customer dissatisfaction. So keep ad placement in mind when using the in-app advertisement.
In-app ads come in various formats, such as
- Banner ads: placed at the top or bottom of the screen. It’s a form of static or animated ad and it’s always present on screen during the time of usage. It’s important that a banner ad be of excellent quality and illustration to ensure delivering the right value
- Native ad: native ads are meant to match the content and the environment they are displayed in. they blend in smoothly and do not frustrate users nor interpret their app journey, making them the most user-friendly option.
- Interstitial ads: considered a more intrusive yet popular option. Interstitial ads take over the whole screen, which gives the user a chance to take a good look at the ad displayed and acknowledge it well. It is better for Interstitial ads to be used at the end of the user flow and not in the middle or beginning.
- Rewarded video ads: said to work like magic. Rewarded ads in general and rewarded video ads specifically have proven their effectiveness. It attracts most users by creating an objective to seek, In the end, the user would get their reward as well as acknowledge the ad’s purpose and value.
2- Subscriptions
Subscription services are an app monetization strategy that has gained major popularity lately, as they’re found in most apps. It mainly offers two majorly different user experiences, as if it were two apps within one. The experience the free user gets is limited but very effective, as he is also granted access to all major features. As for the subscribed user, it’s more of an upgraded experience with more additional benefits. Subscription services as a strategy must be implemented in the smartest way possible to ensure both free and paid user satisfaction. It’s not a black-or-white approach, but offering two different experiences simultaneously and with great implementation, it can accomplish astonishing results.
3- In-App Purchases
In-app purchases are yet another excellent strategy to effectively make money through apps and increase both users’ engagement and acquisition. It’s a clear strategy in which a user purchases virtual goods or services within the app; the app itself or another fellow user can offer them. They are popular in gaming applications and usually include everything from purchasing coins to unlocking level packs or game features to purchasing additional game time. In-app purchases can also be used to unlock additional content, services, or features within an app, so they can be used and implemented in any type of application. Including a restore in app purchases feature allows users to recover previous purchases if they switch devices or reinstall the app, providing a seamless and user-friendly experience.
Usually, when a user engages with an app, they are much more likely to make an impulsive purchase compared to a planned purchase, so what makes in-app purchases effective is that they don’t require leaving the app to complete the payment nor any other processes; it’s all done within the app in no time. This all together leads to enhancing the user experience, thus increasing their engagement
You can now find plenty of ad providers to start with as
- Google Ads
- Unity
- MAX
- InMobi and many more.
With several great options to choose from, making money on apps has become simple. You can easily include them in your development process. As the current trend is toward making free apps, monetization is your best solution to generate profit; therefore, you can start planning now to do more in the future. You can start working on your future with nandbox; it’s not only easy to use and time-saving, but it has all the app monetization methods you can use to start generating profit. Try the nandbox app builder now for free!
