Sure – Shot Tips to Monetize Your Mobile App & Boost Business Revenue
July 17, 2023
Having a mobile app for your business is no longer an option but a necessity to connect with users & achieve desired business growth. The growth of the mobile app market is enormous and famous app stores like Google and Apple are dominating the market with a high margin. A report by Statista states that in the third quarter of 2020, PlayStore has more than 2.87 million apps for Android and 1.96 million apps for iOS.
The above stat shows the booming mobile app market but also shows the competitive side as the number of mobile apps increases. App monetization is a must to stay relevant in the dynamic app market not just to boost the app revenue but also to push mobile app developers in the Top Mobile App Development Company California to enhance the overall user experience. Read more in our blog to check out some of the best ways to monetize your mobile app & increase app revenue.
Significance of Mobile App Monetization
When it comes to mobile apps, it is essential to focus on the user experience of the app as a good user experience is what you need to gain the attention of users. The higher the number of app users, the greater will be the app monetization revenue. That is why, app developers must give special focus on enhancing the app’s UX by making it visually appealing, user-friendly, and contain well-planned information architecture with interaction-oriented design.
If we talk about the monetization of mobile apps, it is the process of generating revenue from mobile applications where you convert your active app users into tangible revenue. Most mobile apps either follow the freely available or freemium approach for monetization.
Also Read: Addressing Security Concerns in Enterprise Mobile App Development
Effective Ways to Monetize Your Mobile App for Better Growth
Mobile apps use different app monetization models such as free, freemium and paid. Additionally, in-app ads, in-app purchases, one-time payments, and subscriptions are some of the most popular app monetization methods. Before you take the help of an expert Android and iOS App Development Company, let’s check out some of the most helpful ways that can help you monetize your mobile app for enhanced revenue.
1. In-App Advertising
One of the simplest and best-proven app monetization ways is using third-party ads in your mobile app that can help to acquire three forms of revenue – Cost per Thousand Impressions (CPM), Cost per Click (CPC), and Cost per Action (CPA).
Some of the most beneficial in-app ads are native, banner, affiliate, and interstitial ads.
2. In-App Purchases
Another popular app monetization method is in-app purchases that enable app users to purchase extra points, power and features at additional cost. The report says nearly 47% of mobile app marketers use in-app purchases to boost revenue for non-game apps whereas in-app purchases in gaming apps contribute 79% of the revenue.
Gaming apps such as Candy Crush and Clash of Clans are two apps that monetize by helping users make in-app purchases. This app monetization approach works best for apps that use the free model.
3. Monetization Using Data
This monetization involves the use of data, which gets collected when mobile app users leave a trail of data while using your app. Every data from a click, subscription, form submission, etc. can help to understand the user intent and their online behaviour better.
Keep the focus on gathering user data and quantifying it to uncover valuable insights into your target audience’s expectations and needs. These insights will help your brand make the personalization game stronger, thereby attracting new customers and retaining existing ones.
4. Freemium App Model
The next app monetization approach is the freemium model, which is a big hit for many app marketing professionals. With this method, your brand allows users to download a mobile app free of cost but will get access to exclusive premium features only after subscription at a nominal cost.
This model is preferred by many users as it does not force them to pay for the subscription charges i.e. they either have the option to keep using the free version or to upgrade better features at a price. It works best to generate revenue from premium users as the app experience is quite rewarding.
5. Email & SMS Marketing
By the end of 2023, the number of active email users will increase & reach up to 4.3 billion. More than 70% of millennials consider email as the most preferred communication channel to know about business and marketing offers while 80% of brands believe email marketing helps to increase customer retention.
Another effective marketing is via SMS messages which have a record of a 98% open rate. Customers rely on SMS coupons ten times more than any other coupons received. This shows the importance of SMS and email marketing to boost revenue.
6. Partnerships
This app monetization model involves approaching a potential partner having a similar customer base and collaborating with them to promote each other’s mobile apps. For example, your brand can combine forces with an established organisation in your business line to help expand the customer base of both businesses and even enhance their apps’ revenue flow.
7. Affiliate Marketing
Another effective method is affiliate marketing where the company offers rewards/benefits to the affiliate company for any visitor, subscriber, and direct sale. Affiliates help to earn a small percentage of the company’s earnings by offering the affiliate program.
Top brands like Google, Microsoft, Apple, etc. host several affiliate programs for mobile app developers, which helps to promote a wide range of apps in your community and increase your revenue.
Also Read: How ChatGPT for Enterprise Can Ease Business Operation in 2023?
Final Takeaways
After going through the blog, it is clear that keeping focus on effective mobile app monetization strategies is a must to gain higher revenue. The key is to incorporate multiple techniques like the ones mentioned above in your app monetization strategy as you cannot keep relying on one or two ways to generate app revenue. To stay relevant in the competitive market and avoid customers switching to competitor brands, you must deliver a consistent and productive user experience, keep track and monitor monetization analytics, and timely upgrades.
Being a reliable iOS and Android App Development Company, Clavax can help you unlock the power of app monetization techniques to witness higher revenue in no time. Connect with our expert developers to give your business app a much-needed boost.