The mobile app industry is at its prime and is all set for further growth. The global revenue in the app market is over $430 billion. If you’re developing a mobile application and expecting to get revenue from it, you will need to learn how to monetize mobile app.
To simplify the whole process of app monetization, we’ve put together an all-in-one guide to app monetization.
What Is App Monetization?
App monetization is simply the process of making dollars out of your mobile app. There are a number of different ways you can do this, from advertising to users to offering subscription plans or charging for each download.
Best Ways to Monetize Your Streaming App
1. In-App Advertising
In- аpp advertising is an app monetization strategy that involves selling advertisements to brands and advertisers. Whenever someone sees it or carries out a certain action (clicking on it, downloading an app, or making a purchase), the app’s publisher gets paid.
The app can still be free for the stoner workshop well with other monetization strategies There’s a variety of announcement formats available The most popular app monetization model
May put off druggies who don’t want to see advertisements Needs a being stoner base to be profitable Requires some specialized know- style
- Best Practices:
If you’re planning to monetize your app through ads, for this reason, it’s important to go over some in- app advertising practices
- Pick your advertising partner precisely
You should know exactly what you’re looking for in an app monetization platform. Make sure they support all the mobile announcement formats you need, that they’ve high advertisement fill rates, offer satisfactory CPMs, and so on.
- Strategic ad placement is key
A multitude of advertisements can drive down your followership, and so can inadequately place advertisements. For instance, interstitial ads that show up in the middle of a game or while the user is filling out a contact form is bound to put off users.
- Track ad performance closely
You might not have to worry about advertisement creatives, but you should still have patience with how well the advertisements you’re displaying are doing. With this knowledge, you can tweak variables similar to bottom prices and maximize the advertisement yield.
- Don’t be afraid to test and experiment
There’s no formula you can use to make sure that you get the desired results from in-app advertising. This is why it’s important to A/ B test your current strategy and trial with advertisement placements, formats, duration, and so on.
- Understand the ad formats
Some advertisement formats work more with certain types of apps. For instance, rewarded video advertisements are great for mobile game monetization, but they’re presumably not the appropriate ones for news portals. Let’s take a quick look at the most common in-app advertisement formats.
2. In-App Ad Formats
- Banner Ads
Banner advertisements show up within rectangular advertisement spaces, generally along one of the edges of the screen. They can contain static or dynamic illustrations.
- Video Ads
Videotape advertisements can show up within a video stream ( these are called instream video advertisements). They can also be contained in another advertisement format, similar to native or interstitial video advertisements.
- Rewarded video ads
When a user watches a rewarded video advertisement, they get an in-app reward for it. This format is well-known among gaming apps. Usually, the user has to request the advertisement to view it.
- Interstitial ads
Interstitial advertisements take up the whole screen of the device. The user either has to exit the announcement manually or watch it until the end to be able to access the app again.
- Native Ads
Native Advertisements blend in with the rest of the content and don’t inescapably look like advertisements at first regard. And native advertisements can be of various types and formats, including images, videos, and text content.
- Playable Ads
Playable advertisements have game-like elements that allow the user to interact with them. They’re generally used to advertise mobile games, although that doesn’t have to be the case.
- Offerwall Ads
Offerwalls are in-app advertisements that help inventors reward user engagement and produce a profit flow from paid and free users like those who serve businesses with the goal to boost app profit and enhance its user engagement and user retention.
3. Freemium and Subscription Models
With this type of subscription, you cannot blindly into the subscription set-up process and hope people will willing pay. These are some things you should consider as you get started:
- Best Practices:
- Offer a commodity that’s worth paying —
The content and features that are locked behind the paywall should be high-quality and worth the asking price. However, you’re not veritably likely to get a lot of subscribers, if you’re offering mediocre content that could repel users away.
- Free trials are a must —
If there’s no free app version, you should consider offering a time-limited free version. Indeed if there’s a free league, a free trial for the premium version can convert free users into paying subscribers.
- Produce an easy-to-use interface —
Whether the subscriber wants to upgrade or downgrade their subscription or reach client support, they should be able to do so easily and without any hassle.
- Determine pricing categories precisely —
Even with high-quality content, users might not be able to purchase your app if the price is too high. Research the pricing categories of apps in the similar category and get to know your followership well to assign applicable pricing.
Consider recurring billing and subscription reminders — When a user’s subscription is about to expire, the appropriate thing you can do is shoot them a reminder to renew it. Along with this, consider activating recurring billing for a hassle-free subscription renewal.
4. Paid App (Pay Per Download)
The pay-per-download app monetization model requires users to buy the right to download your app, generally through a paywall in the app store. This means that the app store you’re using will take a percentage of each purchase but also that you won’t have to worry about integrating a secure and dependable paywall result.
- Advanced user retention and client loyalty
- lower competition among pay-per-download apps
- No paywall integration is necessary
- Requires decoration content worth paying for it
- One-time purchases aren’t a dependable revenue stream
- Not the appropriate choice for hybrid monetization
- Attracts fewer users than other monetization models
- Best Practices
At first glance, it might feel like the pay-per-download model is just not worth the trouble. And for numerous types of apps, it isn’t. But, if you know what you’re doing, this monetization strategy can work in your favor. So let’s take a look at some best practices to keep in mind:
- Invest in marketing —
Since your prospective customers won’t have a way to try out the app before purchasing it, your marketing efforts should show them how the app can make their lives better.
- Make sure your content is worth it —
There are numerous apps out there, and chances are that yours isn’t entirely unique. In other words, if your content isn’t absolutely stunning and worth paying for, most people will be finding something similar somewhere else.
- Think twice ahead including other monetization models —
The pay-per-download model isn’t the appropriate model for hybrid monetization. However, users won’t be too happy to see advertisements or in-app purchases for premium content if a user has to pay to pierce the app.
5. Hybrid Model
A hybrid monetization strategy is any strategy that combines two or further basic monetization models. The most common combination is in-app advertising with in-app purchases. For instance, the user of a mobile game can watch a rewarded advertisement to gain an in-game commodity or they can pay for it with real money.
Another common combination is that of in-app advertising and subscriptions, which is particularly popular among streaming apps. In other words, non-paying users have access to a free ( or low-price) version of the app where they’ve to see ads. But, they’ve to pay for a yearly subscription, if they would like an advertisement-free experience.
- Attracts the widest viewer base
- Has great earning potential
- Specifically good for gaming and streaming apps
- Requires further A/ B testing
- Further technically demanding
- Best Practices
The best thing about hybrid monetization is that you can produce a strategy that’s just right for your app. To achieve this, it’s important to follow certain essential practices:
- Prioritize user experience —
Users can be relatively overwhelmed if the monetization models don’t blend together well. It’s important to keep advertisements at a moderate position while also not pushing too hard for purchases and abstracts.
- Keep testing your strategy —
The most minute changes in your monetization strategy can make a big difference. For this reason, it’s important to keep track of your app’s profit generation and test out new strategies for better results.
- Segment your user base —
You should know which users are likely to spend further and prompt them to make larger purchases. On the other hand, you should also identify those users who are doubtful to buy or subscribe.
Which of these app monetization strategies will be the most effective for your app? In the end, you’ll need to combine a variety of mobile advertising video monetization platform strategies for an accurate result. You must develop a comprehensive approach that incorporates further than one of the app profit optimization strategies covered in this article. Make sure you’re generating the most profit possible from your app while also balancing user experience with advertisement profit.
Running an advertisement and giving your users the choice to pay for an advertisement-free experience is a preferable way to show how app monetization strategies may work together to a great effect.