App Monetization: The Winning Strategies to Gain Maximum Profit
App Monetization: The Winning Strategies to Gain Maximum Profit
Are you sure your app idea is bankable? This guide will show you how to find the right way to monetize your app and make it the most beneficial source of extra earnings for your business.
Choose The Approach That Is Right for Your Business
Without a monetization strategy, it is impossible to drive business success.
Monetization should be a part of the initial strategic plan in the software development process. (If you want to understand the development process as a whole, you may take a quick look at the infographics from one of the software design companies).
Shape target market and overall objectives:
What are your income expectations?
Which target audience segments do you need to reach?
Do you want to increase the involvement of certain demographics?
Find answers to these questions and use them as the starting points for further development.
Estimate your earning capacity:
- Count the overall number of potential clients, for example, as a percent of the target audience. Set a marketing goal - cover the definite market percent - and define the audience from the current sales channels (website). How many contacts are becoming your loyal customers? Count the same rate for the number of your potential clients from an app.
- Single out the average non-recurring expenses of one client and the profit-making capacity;
- Evaluate the user’s lifetime value (i.e. how many purchases she/he does in average for the turnaround time);
- Sum up everything and get your estimation.
Many publishers today use a freemium model.
Think of Freemium
This download model lets you switch samplers into dedicated, engaged customers.
Note: Once you've got an audience’s interest, there are many methods to monetize it, which includes mobile marketing, in-app purchases, and subscription models.
Advertising in the mobile application is quite widespread and efficient monetization method.
Choose the Right Monetization Ally
To use the advertising to your benefit, find an associate that is aware both of the app development and advertising.
Devote some of your app’s actual staff to marketing
Hire devoted marketing specialists to handle the advertising issues
Buy mobile ad space in other apps
The proper mobile advert network could help you with any of these strategies, and could provide features like:
A brand-safe publisher network to ensure your commercials don’t appear everywhere you wouldn’t want them to.
Deep data sets enabling predictive mobile ad focused on for the best ROI.
Stateside account managers who're available when you need them.
Pick the Proper Type of In-app Commercials to Fit your Possibilities and Desires.
Maybe you don’t need an app to display banner advertisements, but you do need to use cutting-edge video commercials. You may use any form of advertising, and each will have its very own advantages and downsides. Some include higher development expenses than others, but may additionally force better click-through quotes.
Find the proper mix of ad sorts to hit your objectives. You could additionally need to remember native advertising options, where in-line or other native ad kinds mesh more seamlessly along with your application experience.
Don’t allow advertising smash your app.
If the advertisements displayed in your app are applicable, attractive, suitable in the customer profile, and that they don’t block basic usability, lots of your app’s users may end up tapping on them.
But if advertisements pop up too regularly, are unpleasant, block the core functionality, or don’t align with your the user profiles, they will operate against you.
Note: The choice of ad community can play a role here, too: the proper companion will help you to make sure that the mobile advertisements are as successful as possible.
Do in-app advertisements irritate you?
Localize your Ads
Some advertising partners can localize (or hyper-localize) your advertising to make it extra relevant with the use of technology like Beacons, GPS, and Wi-Fi. This technology provides real-time mobile ad targeting on that connects to real customer studies.
Note: Customers react more active to a mobile ad containing a coupon for a certain place in the nearest location - 63 percent of phone owners say they may be more likely to click on an advert that offers a discount to a nearby shop.
Consider cost per install (CPI) advertising
You may pay to promote your app in different programs, leading the users to install your app.
Use External Advertising
You can increase the target audience and sales opportunities.
Since the CPI cost depends on the number of installations the ad generates, the advert network lay down at stake. In other words, it suits the interest of the advert network to place your ads where they'll achieve success—the community only get paid when a user installs your app.
Place Pertinent Information Outside of the App
Push notifications don’t necessarily generate immediate sales, but they do improve long-term engagement, giving advertising more time to take effect.
Note: Users who enable push have better engagement and higher retention than those disabled it.
Encourage customers to spend money within your app
Explore In-app Purchases and mCommerce
Think deeply about the possibilities you may promote through your app: consumables, upgrades, in-app currency or anything else. This method works better for some apps and worse for others - try to find the purchases the most valuable for your app.
Advice: Perform the market testing: give to a half of the target audience one sales offer, and another to others. Google Analytics, the A/B testing panel could be very useful in finalizing the results.
Apart from their sales capacity, in-app purchases are also notable for supplying you with perception what attracts your users—so that you can provide the best of it.
Reveal Offbeat Monetization Ways
Bear in mind some unusual approaches to make cash.
Create a top class subscription model on the app that gives behind-the-scenes data or functionalities, unlocks codes, or offers access to hidden levels;
Develop auxiliary apps that entice new customers and drive cross-promotion;
“White label” your code (license it to builders who use it as the base for their programs)
Find opportunities to promote the data your app collects to entrepreneurs.
When It Is Time to Monetize
When you have investigated all the opportunities, it is time to make a decision.
Keep in mind:
Target audience. Outline who you expect using and paying for the app.
App type. Monetising financial information apps and calculators can be carried out with limited trial and SaaS models, but freemium and advertisements are more appropriate for apps with mass audiences, like lifestyle apps and games.
Competition. Study both the free and paid analogs. Examine what they do right and what wrong. To beat them on all the levels, take a comprehensive view of each group.
Mobile app monetization is an evolving area, with lots of innovation and opportunities that will help you in your efforts.
Follow these tips to make your application a reliable sales generator and a sustainable source of income.