Mobile app effective monetization

OK, you created an awesome mobile app for your business. That’ s the beginning of the long journey. What is the next move? What to do to make the app reach a large scale and start earning money? App monetization plans require a strategic approach. You need to integrate several activities. Let’s look at the graphic below:

mobile app monetization

We will try to present some tried-and-true methods that work effectively for Better Software Group clients. Today we present three methods. Next we will show in the next episodes.

Let’s start from the basic definition. A mobile application, most commonly referred to as an mobile app, is a type of application software designed to run on a mobile device, such as a smartphone, tablet or other portable device.  Each app provides limited and isolated functionality such as a game, calculator or mobile Web browsing. Mobile apps can come preloaded on the handheld device as well as can be downloaded by users from app stores or the Internet. The term “app” was popularized by Apple when the company created the “App Store” in 2008, a year after the first iPhone was released.

Let’s say our app is ready. How can we build coverage and monetize our app? Here are some ideas used by developers, marketers, agencies:

  1. Emailing – email strategy tie-in with your app is a fantastic way to get more engagement from your customers, which in turn leads to more money. Most companies have ready-made databases that you can use for marketing. You can use platforms, like MailChimp or others. According to Wiselytics, the total life of a Facebook post is only a few hours, while a tweet’s lifespan is just over an hour. Email, on the other hand, has a lifespan of 12 days. The best way to gather those email addresses is to add an email subscription form to your app.
  2. Adertising – Digital advertising through mobile apps has improved the communication between advertisers and consumers dramatically. This is largely due to the crazy amount of time people spend on their phones. We’re talking at least 90 minutes a day – the equivalent of 23 days a year. It’s funny, but true. Typically there are some of the most importrant types of ads used:
  • Interstitial/full screen ads – These ads are usually placed at natural pause points, like when moving between menus. Because these aren’t actually interrupting the experience of using your app, they’re more likely to generate clicks without causing frustration.
  • Notification ads – These pop up in the mobile device’s status bar and make users more aware of the ad’s presence. Be warned, these aren’t the most well-loved ads out there, and could damage your app’s reputation.
  • Capture form – Relying on user opt-ins, these offer incentives (like points or tokens) for users who enter their email addresses. You’ll most often find capture forms in mobile games.
  • Advanced overlay – These use transition points like interstitial ads but are interactive instead of being simple clickable images. They’re sort of a mixture of capture form and full screen ads.
  • Banner ads – These are usually found at the top or bottom of the screen and can be somewhat ineffective because they are more distracting than other forms. They can also irritate your users, so think twice before agreeing to incorporate one into your business’s app.

mobile app ads

  1. Sponsors and partnershipsIf you can secure a partnership of your mobile app with another brand, you can significantly step up your monetization game. If your partner includes advertisements featuring your apps, there’s a solid chance their users might click that ad to go straight to your app. This is called a click-through rate (CTR), and in some instances, it can be as high as 12.5 percent.
  1. In-app purchase – this method helps your mobile app make as much money as possible off of your otherwise free app and allow customers to actually interact directly with your product. You can sell premium content, virtual goods, and subscriptions — directly from within your mobile app. The downside of in-app purchases is that developers walk a fine line between giving too many options for free and offering too few features. So, be mindful of that if you choose this monetization method.



Source: BulidFire, Techopedia, Lifewire

Graphic: BuildFire