Today, we are surrounded by millions of mobile applications in the cyber world. Along with smartphones, mobile apps also gained so much popularity in our daily grind so seamlessly that today we consider them as the fourth necessity for a living after food, shelter, and clothing. Justifying this assumption, statistical reports from the Google Play Store and Apple App Store reveal that thousands of mobile apps are developed and launched every month. According to another study, 57 percent of all Internet traffic in the US comes from smartphones and tablets. Both these studies explain the fact that mobile applications are one of the most powerful tools that help to grow a business nowadays. It empowers enterprises to stay competitive by providing easiness, liveliness, and comfortability for their audience.
Thus, in this article, let’s discuss a few proven strategies that help businesses to monetize their mobile applications.
- In-App Advertisements
Advertising is perhaps the most recommended strategy for the monetization of mobile apps nowadays. Recent studies report that in-app advertisements drove 75 percent of all media ad spent in the past few years. This proves the vehement influence gained by in-app ads in the cyberspace.
By understanding the possibility of in-app ads, advertising companies today provide a wide range of ad networks such that app owners can select the most suitable one for their business (many of them select pay per view basis). Though it is an effective way for app owners, the vast majority of users don’t prefer seeing ads while using their favorite apps. Thus, businesses should consider moderation and user experience in an equation.
- Freemium Model
As the name, the ‘freemium’ model provides free and premium options by which users can choose the most comfortable one. Generally, the free option is limited in its functionality as it provides a less desirable user experience. While the premium option grants full, ad-free, and access to the app in exchange for payment. Most of the successful apps use this business model for both iOS and Android.
- Paid Subscription
Charging a monthly paid subscription (paywall) is another way to monetize your application. It works very effectively for media, news, content, and e-learning websites. It is the basis for the iOS App Store App Bundle concept that allows consumers to purchase several similar apps from the same developer at once. This strategy is an excellent way to generate a substantial sum of funds from your apps if you have several similar apps that you are offering.
The New York Times is one of the examples that effectively use a paywall model to scale their business by providing high-quality content.
Sponsorship is highly lucrative when it comes to app monetization. If you have any doubts regarding this, imagine, you already launched an app with a huge user base. This model enables you to approach a sponsor company to renew your app’s design that matches with sponsor’s brand even after a certain period. And, you will avail two types of sponsorship deals. One enables you to divide your revenue with the sponsor, and you can receive a monthly sponsorship fee with the other. Thus, make sure that your sponsor is the right one, and who can make your app attractive among potential funders.