Ways to Effectively Monetize Your Mobile App

The mobile app market exploded insanely since the launch of iPhones in the year 2008. Today, more than a decade later, over 83% of Americans own a smartphone- making it one of the most efficient channels to reach people.

Contrary to popular belief, the app market is not overcrowded. Since the number of mobile users is high, the demand for mobile app services is also high. Nevertheless, the app industry is worth billions of dollars. In this article, we will dive into app monetization strategies that help app owners generate maximum revenues.

What Is Mobile App Monetization?

It is what it sounds like: a method used for generating revenues out of an app. And there is a solid reason why you would not skip that. For starters, the average screen timing of users is much more on smartphones than on laptops, desktops, and other computer devices. But the story doesn't end here. An average consumer spends about 2.3 hours every day engaging with media on their mobile devices.

As a result, it is easier to monetize a mobile app than monetize web app. Now, if you think, "How can I charge my users for my app? They will never download it."

Then guess what? You are highly mistaken! Monetizing apps on Android and iOS is possible even when the app is available for free.

Then how do I monetize my app? Let's answer that in detail.

How Does App Monetization Work?

There are thousands of success stories of app owners who successfully built free (and paid) apps and brought in hundreds, if not thousands of dollars a day with it.

Mobile monetization models provide its users with a chance to leverage its user base in a way that they can earn money with minimal or no funding at all. Monetization depends a lot on your app's niche, targeted audience, the type of services, frequency of app usage, ads displayed to the consumers, and many more.

In the end, it all comes down to one thing- Play Store and App Store monetization. Now let us look at some of the best ways to generate revenues with an app.

Best App Monetization Strategies

There is not a single best way to monetize an app. Let us look at some of the most popular ones. Try using multiple methods out of these:

1. Paid Downloads

Every time a user downloads an app, they pay an upfront fee. The more the app owner charges and the more number of users the app has- the more they can earn from the paid downloads. Be careful of the price you charge vs. what your app delivers.

2. In-App Subscription

In this case, spending money would open up new features of the app to its users. The free or basic version will provide slimmed-down versions of the app, and by making a purchase, the users will unlock all the premium experiences. For instance, many content streaming apps let users watch a limited amount of content in their free version, and they have to get a monthly subscription to get access to the rest of the content.

3. In-App Purchases

This monetization plan is similar to an in-app subscription- but it lets users access only a particular paid service instead of the premium version of the entire app. An in-app purchase may let a consumer watch that one extra workout video, get that crate with extra points for the game, use that one feature for editing that video, etc.

Pro Tip: Make sure that your app is perfectly functional even when excluding the in-app subscriptions and purchases. Or else, you may lose a lot of customers who might be very frustrated and leave awful ratings and reviews.

4. In-App Advertising

It is one of the best monetizing techniques for a free app. Users are okay with watching ads as long as it does not clutter up the overall interface. Try to reward users whenever they watch long ads- with coins or access to some paid features. It must be a part of the trade-off- but the users must feel like you are providing them with high-quality features for free. As a result, they might even make a purchase, which will help you earn in CPA (Cost per Action), CPC (Cost per Click), CPM (Cost per Thousand Impression), etc.), or they will upgrade to the ad-free version.

5. Partnerships and Sponsorships

It is also known as influencer marketing. Many brands approach apps with a large user base in a particular niche to connect with their target audience. This way, those brands get more promising leads, and you get paid for providing them with those leads using brand awareness on your platform.

Monetize Your application Today

Investing in application development is definitely an excellent idea as long as you deploy the right monetization strategies. Now you understand how you can earn from your application, even if it is free to use.Willing to develop your next (or a brand new) application?

We, at JumpGrowth, provide our users with prebuilt apps and otherapp development services. Drop us a hi to understand more about our services, and our representative will get in touch with you.

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