To make a return on your investment, you must have app monetization. You will develop another money stream if you can accomplish this efficiently. And this additional revenue has the potential to compound. For example, the business that created the Angry Birds app is now worth more than $1 billion.
You have created a fantastic app. It might be an internet store where you can sell your merchandise. It might be a service that assists your consumers in their daily life. It has the potential to be the next Flappy Birds.
Depending on the demands of your business and the goals of your app, there are several methods to monetize. Consider the following prominent business models:
Apps for a fee
The most apparent approach to monetize your software is to charge users to download it. Because you only have one way to monetisation with this model, you must ensure that you can show the value of your software to prospective buyers. To entice your consumers, for example, provide images, reviews, and unique features.
However, your consumers might not want to pay for your app directly, since the typical app price is only $1. This year, free mobile app downloads are expected to exceed 253 billion, while in 2013, 91% of all app downloads were unpaid.
While sponsored applications do exist, they are mostly used by well-established and well-known firms. So, unless you’re quite sure in your app’s prospects, your business will need to establish a stronger reputation before pursuing this way of monetization.
Advertisement within the app
A sprinkling of advertisements on your app is a simple monetisation triumph. According to App Annie’s Digital App Economy research, global in-app advertising is expected to expand from $40 billion in 2015 to more than $115 billion by 2020.
In-app advertising may be used in two ways: native advertisements and banner ads. Banner advertisements are classic web commercials, often positioned at the top or bottom of an app. Native adverts may be tailored to match the look of your app. They don’t immediately strike out as advertisements and are intended to seem more like fascinating content.
You may also employ interstitial advertising at app transition points or rewards applications that are activated when a user completes a goal in your app.
There are several in-app advertising choices to explore, and you must choose which technique is ideal for your consumers. According to research, banner advertisements have an average eCPM of $0.28, and video advertising have an average eCPM of $3.08, where the eCPM is the “effective cost per mille” – an ad income calculation in 1,000 units.
This type of monetization is a brilliant mix in which the user may download your programme for free but must pay to upgrade and access the full range of capabilities. This strategy also gives a nice user experience because your clients may engage with your software before deciding whether or not to pay for it.
This model might not be suitable for your app. To keep your users, you must provide ongoing support and produce fresh content and services. According to studies, freemium applications are popular in the gaming sector, with the typical freemium game user, excluding non-paying gamers, spending $24.66 per month.
In the same spirit as freemium, you may implement a subscription model in which the user pays to access your complete content. This is a good strategy for organisations that place a high value on content, such as those in the news and entertainment industries.
Auto-renewable memberships are a popular choice for providing your consumers with continuing access to content or services. It will automatically renew at the conclusion of the subscription period unless the user cancels it. You may customise your subscriptions so that your users can choose the service levels and durations that best suit their needs.
Paymium is a newer monetisation strategy in which a premium app additionally charges for additional functionality via in-app purchases. It combines the freemium and premium app formats.
It’s also a risk if you’re a company planning to launch your first app and are better suited to top businesses delivering premium services and high-quality content.
If you want to monetize your app, you must do it in a way that is sensitive to your consumers and keeps them engaged with your business. The line between good app monetisation and a poor user experience is narrow.