There is a reason why the trending technology of mobile app development is gaining unmatchable popularity. And the reason is its capacity to generate money. Over a decade, applications have transformed to become a constant source of revenue, by integrating with the latest technologies like artificial intelligence, blockchain or augmented and virtual reality.
This is the reason why a lot of established organizations or startups are leaving no stone unturned to develop an app, and generate revenue & achieve a return on investment. The rising demand is not showing any signs of slowing down. This is the right time to dive into the pool and relish its benefits.
The market is witnessing the creation of different applications almost every day. Increased number of apps is giving rise to competition. So if you are thinking about making money through a mobile app, then you need to have knowledge, patience, creativity, and of course an expert mobile app development company.
It is important for organizations and industries to understand that to maximize app monetization, they need to market it before, during and after the launch. Expecting the money to pour in without any effort is baseless. Therefore, it is important for you to optimize it in order to get profitable conversions.
But it is impossible for a beginner to know all the strategies for app monetization. So if you are keen on knowing every trick, then just sit back, relax, and keep reading further.
Mobile App Monetization- All The Strategies You Need To Know
Without any further ado, let’s start unfolding every aspect of app monetization…
1# Lead Generation
A smartphone application can be used to pump up the interest of all the potential clients to sell the generated leads to the interested organizations. They are also helpful in selling the generated leads, and this technique is beneficial for companies that are looking forward to making the most out of the available data.
For lead generation, it is important for an app to analyze and collect valuable data.
2# In-App Purchases
This strategy changes an application into a sales channel. An application needs to remain fully functional without any digital upgrades. The added features should only be focused on improving the overall user experience. In-app purchases may include ad removal options, virtual currency, consumables, and add-on features.
This method essentially uses your app as another sales channel. But it’s important to note that despite these offerings, your app should remain functional without the digital upgrades. The add-ons should only serve as a way to improve the user experience. In-app purchases can refer to in-app consumables, ad removal, add-on features, and virtual currency.
They provide real value to the users, and all the additional purchases enhance the complete user experience. It is not necessary to charge the users with an initial fee, rather your app’s amazing UX can tempt the users to buy add-ons.
In some cases, the subscription model limits the number of features the users can access within the application. A lot of applications offer their users a taste of their premium features or selective amount of content for a limited period of time. For example, Netflix offers its customers a one-month free trial and lets them watch any content. And once the time is up, they ask the users to get the monthly subscription.
For the increase in the number of subscriptions, it is necessary for the app to increase the inflow of content. Once the content stops rolling in, the lack of customer engagement is unavoidable. Hence this strategy works well when there is a scope of large and robust audience and there is a lot of fresh and engaging content.
One of the most effective app monetization methods is advertising. A properly executed in-app ads have the capacity to generate an enhanced revenue for the business. This works by connecting the smartphone application with ads or any app platform. Ad platforms pay app owners to host highly targeted ads. So if you have a large following, then your app can generate a significant amount of revenue by displaying targeted ads. This can be done by gathering behavioral and demographic data.
Applications should not fetch the profit directly from the users.
5# Freemium Application Model
This model offers a free, basic and premium version of an app. Big brands find this technique a great way to develop an enhanced user base. The freemium application model also accumulates the audience who is ready to pay for the premium features. But the accumulation happens only when the premium features add value to the users.
It works well when the free app version is attractive enough to engage and retain the interest of the targeted audience. The free version needs to compel the users to pay a little extra for the extra features.
When your main aim is to generate revenue from ads and the users, this model is your best bet.
Since the users rarely change their e-mail addresses, sending a newsletter is the perfect strategy to encourage the users to increase the interaction. SMS marketing and in-app messages are also a great way to increase user engagement an attract them towards the application. These are the three basic marketing techniques that enhance the in-flow of users, and this process directly brings an increase in revenue.
E-mail and SMS marketing allows us to fetch the potential leads and also convert users from desktop to mobile. The conversion is possible because of the constant sharing of the newsletter or promotional campaigns through SMSs and e-mails.
Once the campaigns are delivered to the targeted market, the right audience is attracted. But good user experience is the only way to make them stay. So ensure that you leave no stone unturned when it comes to targeted marketing and elevated user experience.
There is no doubt in the fact that app monetization techniques can be a little tough to understand. But once you catch the right nerve, it helps your business to achieve unmatchable success and popularity.
If you want to know how to make money from developing android apps, then reach out to the expert mobile app development company, today! So what are you waiting for, open a doorway to enhanced revenue funnel?