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What is Monetization?
Monetization is the process of generating revenue through a website, an app, or through data. If you are running a business, you aim to make money out of it, right? Of course, you do.
So, you launched an app in the market since you’ve heard it’s an easy way to make cash. However, you are not sure about how do app make money?
Every mobile app is unique in its ways and has unique customer journeys. So, having a one-size-fits-all strategy won’t serve the purpose.
You need to research and figure out what works best for you. Such that you have a clear understanding as to which technique will be able to captivate the audience better and deliver them better in-app experience.
Best Monetization methods for your app
1) Advertisements
Interstitial/full-screen ads, these ads are usually placed at natural pause points, like when moving between menus. Because these aren’t interrupting the experience of using your app, they’re more likely to generate clicks without causing frustration.
- Notification ads: These advertisements are the ones that pop up in the mobile device’s status bar.
- Banner ads: These ads are usually found at the top or bottom of the screen.
2) In-app purchases
The app is free to download, but the publisher makes money on in-app purchases that provide an enhanced, “premium” experience. Users are generally offered additional features on purchase.
This model is primarily utilized in-app monetization strategies within mobile gaming, where you can pay real money for extra lives.
Also Read: Effective ways to get Customer Feedback using SMS Surveys
3) Subscription
If your app is a one where audiences supposedly will get updates, you can go for subscriptions option. It is an excellent way to create a consistent and reliable engagement with the user.
The role of a subscription-based model is to keep content fresh. Keep in mind to reduce the time of your app’s update cycle to provide more value to customers, and encourage them to spend more time in your app.
4) Affiliate marketing
Affiliate marketing is a process of getting incentives in the form of a commission whenever a mobile app is downloaded via the link, or any other action takes place.
To make it work for your app monetization strategy, you need to choose what specific apps to promote inside your application. It could be an app that complements or accentuates your app for your user’s experience.
A particular kind of affiliate marketing is called lead generation. In this case, it’s a process of not selling products or services but capturing the contact details of users who are interested in purchasing specific services or products.
5) Partnership with another successful app
Partnering with another successful app and using the promotional benefit from their platform is a great way to build your user acquisition and achieve revenue growth. This is also called sponsorship method.
Even if you cannot partner with a successful app, doing the same with a moderately successful or a potential one can be useful as well.
6) SMS Marketing
You can collect email addresses by using in-app prompts. With their information, you can later send app updates notifications, reminders, contests, and promotions straight to your users’ inboxes.
This is one of the most effective ways to strengthen your brand because it drives users back to your app.
Also Read: Why should you use SMS Marketing to Connect with your Customers?
Things to do before monetizing your business?
1) Research other apps in your category
Have a thorough analysis of other apps in the same category as your app. Check how they are monetizing?
2) Think about the application of your app
Every app has specific functions and is made based on particular objectives. Now, this is one of the factors based on which you need to choose your app monetization technique. You can give a free trial period to encourage uptake and then go for premium versions. In this way, you can visualize how to determine the costings for your app.
3) Take your audience into account
At the end of the day, it is the users for which you are planning to monetize your app. Hence it is necessary that you look into the scope for using any of the monetization techniques.
4) Setting price for the app
This is the last step in which you need to set a price for the app. The pricing will be different for different techniques, and they also come in various factors that you need to pay attention to.
Something like comparing the pricing of competitive apps, analyzing the sensitivity of the app, measuring the demand of the app, and other market factors.
