Mobile apps are the next big thing in the world of technology. These applications are becoming more common by the day and you can find them in almost every sphere, from transport to education and from music to gaming. As these applications can help to increase productivity, as well as make our lives much more convenient, it’s important to understand how to properly monetize your mobile app so that you can maximize your revenue potential, without sacrificing on your app’s functionality or user experience.
When looking at the mobile app market, you may have noticed that there are many different ways to monetize your app depending on where you live, who you’re targeting, and what kind of budget you have in place to begin with.
On top of that, different strategies work better than others depending on certain factors like where your potential customers are located and what devices they’re using most often, as well as how long it will take to turn that investment into profit. So how do you know which strategy works best? Here are some top 10 ways and strategies to monetize your mobile app in 2023 that will help you along the way.
Top 10 Ways and Strategies to Monetize Your Mobile App in 2023
1. Freemium App Strategy
Freemium app monetization is one of the most popular strategies for mobile app developers today. A Freemium App Strategy can help you keep your users engaged with your app, while also bringing in revenue from their usage.
Freemium apps are those that offer a basic experience that is free, but with an option to upgrade or buy an enhanced experience. With this type of monetization, you can charge your user for new content, more frequent updates, or unlimited lives.
Here are some benefits of Freemium app monetization strategy:
- Lowers the barrier to entry and increases downloads: For starters, a good number of people will download your app just because it’s free. And if they like what they get at first, they’ll be more likely to pay for future upgrades. In addition, if someone has already downloaded your app, there's no reason not to let them try it out before charging them. They might become paying customers as a result!
- Keeps customers coming back: The key word here is free. Some people won’t care about paying for extras if they feel like the basics work well enough. But many others will be happy enough with what they have that they return again and again.
2. In-app purchases
In-app purchases are a popular way for app developers to monetize their product. They have the advantage of recurring income from the same customer, but they can also be more costly for your business than other methods of monetizing your app.
One option is giving away your app for free but including features that need an In-app purchase to access them. This would generate revenue from people who can't wait or don't want to spend money on something they may not use, while providing you with a way to make money off those who do. You can also offer an In-app purchase for an additional level or feature that's exclusive only to those who purchase it.
A good way to monetize an app is by providing a subscription service. This can be done through a free trial or by charging a monthly, quarterly, or yearly subscription fee. You could offer various services with the same price such as allowing access to different types of premium content like videos, photos, games or music without ads. Subscriptions are also useful for apps that have regular updates and new features on a regular basis like iOS and Android OS’s.
Here are some benefits of the subscription model:
- Customers feel safe about recurring payments since they know what they're getting every month.
- It's easier to predict your income when you know how many subscribers you'll have and what their fees will be per month.
- It's better than having ads because it provides users with a choice between paying for the app upfront or going ad-free by paying a monthly fee.
- Allows you to target particular customers who might need specific features within your app, while still giving other people the opportunity to download it for free from the store.
- A subscription model encourages ongoing use of your application so that your company has more opportunity for growth over time!
4. Video Ads
You can monetize your app with video ads. Here is how it works:
- You find the right video ad partner
- Sign up with them and get a publisher account
- Add their SDK to your app
- Use the SDK to show video ads
- Receive revenue from the ads shown on your app according to your agreement.
Video ads can be one of the best ways to monetize an app as they are attractive, engaging, and serve as reminders for apps that users enjoy using. Here are some benefits of video ads:
- Video ads are a scalable and profitable way of monetizing apps
- The app owner has access to detailed analytics on how users interact with their ads, leading them to increase ad revenue.
- The publisher gets a big chunk of ad revenue, leaving more for them as it can go up as high as 90%.
- Publishers have control over what ads they show, when they show it, which country's audience see it.
- Publishers also choose where they want their video ad partners’ videos to appear.
- It takes time to build up a large following on social media.
- There is plenty of opportunity for publishers to work together and promote each other's brands.
5. Ad Networks
Ad Networks are a great way to monetize your app. But, you have to be careful with how much ads you show because if it's too many, people will get irritated and leave the app. There are many different types of ad networks that offer different things for different situations. Some examples would be: AdMob, AdSense, Facebook Ads, etc. I recommend doing research on which one is best for you! Here are some benefits of Ad Networks:
- It can generate revenue even when you’re not using your app.
- You don’t need to find advertisers yourself.
- Ads can be shown at any time during use (not just before or after).
- You only pay when someone clicks an ad.
- You can set up specific targeting criteria so that the ads will only appear for certain demographics.
- It’s relatively inexpensive to start using an ad network.
6. Free Trials / Demo Apps
One of the most common ways to monetize your mobile app is with Free Trials / Demo Apps. A demo app provides potential users with a preview of the app before they download it. This will give them an opportunity to see if it meets their needs, or if they want the full version. You can offer a free trial for the full version so that people can see how your app works before they commit.
The free trial will allow them access to all features, but will expire after a certain amount of time. When you make this offer, be sure that there are enough features within your app so that people don’t feel like they are missing out on anything just because they can't pay for the full version right away.
7. Affiliate Marketing
Affiliate Marketing is the process of earning a commission by promoting someone else's products, usually with a link. It's a great way to monetize your app with minimal effort by just posting links. Here are the top some ways for you to use Affiliate Marketing for your mobile app:
- Use an affiliate partner that specializes in apps like iDevAffiliate or Apps Promote
- Choose affiliate partners that offer competitive commission rates and have a large customer base
- Send them your referral codes to track earnings
- Create offers for free downloads of other people's apps
- Offer content in exchange for download offers
- Implement custom URLs so visitors can buy what they see on their screen right away
- Implement free trials and no obligation subscriptions where visitors can cancel at any time
8. Direct Advertising
Direct Advertising is a popular monetization strategy for many apps. In this business model, you serve ads that are relevant to your app content and audience. If an ad is clicked on, then the advertiser will pay a fee for each click. This type of monetization can generate additional revenue from your app while still keeping your users happy with relevant ads they are more likely to click on. Here are some benefits of Direct Advertising:
- Higher Revenues: According to research by Statista, mobile advertising revenues have increased by 60% year over year since 2020. With projected annual growth rates at nearly 22%, it's clear that the industry is set to continue flourishing.
- More Impressive ROI: The ROI for advertising investments have grown significantly over the years; up 450% since 2020 according to Forbes Magazine. And if you choose direct advertising as a means of earning money from your app, this investment could pay off even faster as advertisers are willing to provide higher bids because these types of campaigns often lead to increased sales and brand awareness.
9. Data Licensing & Selling
With the emergence of a new data-driven economy, Data Licensing & Selling has become one of the most valuable monetization methods for app developers. With this strategy, you offer your app users access to your raw data which they can then use for their own research purposes. This way you are giving people more value while still retaining ownership of your original data.
Also, once people start using your data, they will be inclined to keep coming back for more! Here are some benefits of Data Licensing & Selling:
- You get paid monthly or quarterly;
- You don't have to give up all rights and control of your data;
- You get paid regularly without having to wait months;
- You maintain control over all the info you share with your customer;
- You're not limited by restrictive platforms like Apple or Google Play because you don't need any special platform distribution agreements in order to sell data;
- You're able to better understand who is interested in what topics so that you can tailor content as well as target audiences more efficiently;
- Data licensing provides increased opportunities for research collaboration between academic institutions and businesses alike.
10. Earning from interest on mobile users data
One of the most popular ways to monetize your mobile app is by earning interest on mobile users data. When a user signs up for an app, they agree to give you access to their data. This includes the ability for the app owner to see what other apps are on their phone, what websites they visit, what time zones they live in, and more!
If you have an idea for a new app that can use this data, then it might be worth looking into getting a list of all of this data before launching your app. This is not something that most people know about or are even aware of but it's something that can provide huge monetization opportunities for any mobile developer with foresight.
Following from above, we can see that there is certainly no shortage of monetization options on the market today. Whichever way you decide to go with your app, keep these tips in mind when it comes time to set a price point: You want your price point to be just high enough for you to make an acceptable profit, but not so high that users will opt for other alternatives instead. If you're new to the game, then it's going to take a lot of research and development. You can hire mobile app developers in India who know how things work. And if you want your app to be successful, you'll need an experienced team that knows what they're doing.