Presently, there are approx 2.7 million apps in the Apple App Store and 3.5 million apps in the Google Play Store. No doubt, there are a lot of apps available in the market. According to TechCrunch, people use only 9 apps per day and 30 over the course of the month. This figure gives us an idea that there is tough competition among mobile apps and to keep the user engaged. There are numerous applications that are free of cost but the most surprising thing is how Android app developers can make money from them. According to Gartner, it is revealed that customers mostly trust friends, social media recommendations to decide which app to download. Well, revenue is essential for mobile app developers, just check out a few ways to monetize an app before putting one in the development phase.
A large number of developers depend on this revenue model but the exciting thing is revenue per user is limited. According to Flurry, it is estimated that top 100 ranking developers able to generate 32% of revenue. When things are revolved around mobile, there is no advantage of using banner ads. Instead of this, focus on native ads as they work better and provide less hindrance to the user. The following chart will tell you major methods of advertising that are working for developers.
In the coming time period, the in-app purchase will become the single largest revenue source for all app developers. Although games already lie in this category, other app categories are also making their ways into this. There are various app developers that provide better functionality through in-app purchase but some of them follow such things only for games. On the other hand, there also exist various ways that provide incredible incentives to users. Overall, this is the fastest monetization strategy that provides across all platforms.
This category occupies a large chunk of total revenues upcoming time period. The most interesting thing is that a large number of iOS app development companies are moving away from paid downloads and shifting to app-purchase model.
Also, check out some alternative ways that you can use to monetize an app without investing huge amount every month in advertising or other marketing strategies. According to Statista, it is revealed that the worldwide mobile app revenue will reach to near $190B in the year 2020.
Working with Data Partner
App data is the best way to monetize an app without using advertisements. If you want to do this, pair up with an SDK partner. User data is extremely important for consumer researchers, excluding usernames and contact details. Such kind of data is also important for digital marketing and advertising agencies as they are continuously focused to deliver advertisements in an effective way.
With an SDK data partner, you can generate revenue by asking for customer permissions as well as sell data to third-parties. But when it comes to consent, you have to be careful as data security should be your utmost priority. Made clear in the terms and conditions that you can sell customer data to third-parties so that they can provide your consent without any hassle otherwise, you may fall into major problems as General Data Protection Regulation Act has become effective from 25 May 2018.
It is extremely difficult to create an app that users pay to download but this is the easiest way for revenue. To get an idea of the average price, you have to clearly observe your competitors. To win customers’ trust, you have to invest in marketing. In 2017, it is estimated that paid apps were able to generate $29 billion in revenue. Encourage customers as you can so that they can pay a small amount to download. Through this methodology, you can easily generate revenue from hundreds of hours that you have invested in mobile application development.
Email marketing is another effective way to generate revenue. In this process, you have to send email data to third parties and build up an email newsletter so that people can open and click. It is quite similar to working with an SDK data partner but make sure you have permission. Moreover, you have to check the data in a proper way, especially with encryptions so that you can prevent cyber attacks.
How to choose the Right Monetization Model for Your App?
Picking the model that is perfect for your app is quite a difficult task as it depends on a variety of factors. Here we are discussing some considerations that you should keep in mind at the time of planning mobile app monetization strategy so that you can deliver outstanding mobile app development services.
Start with the App
Basically, you have to consider what your app does and what kind of problem it resolves? For instance, subscription models always work best for services like video streaming, news, and entertainment. On the other hand, in-app purchases are best for free-to-play games and retail/shopping apps.
Check your Competitors
At the time of defining app products, competitor research should be your priority so that you can understand which trends are going on. Do you have any idea how are your competitors monetizing? Can you do extraordinary things to accelerate revenue generation?
Check your target users
Choose the appropriate monetization strategy after conducting proper user research. You have to check your target audience, who are they, what do they want and what are they willing to pay for? It is very important to choose the app monetization model wisely otherwise users can delete your app.
It does not matter which app monetization model you choose for your application, remember one thing that it is not an afterthought. Before you launch your app, make sure it is baked into your business plan. Being a trusted mobile app development company, Fluper is fully committed to delivering end-to-end mobility solutions from initial conceptualization of the app to the final deployment in the app store.
Find more top mobile app developers worldwide on AppFutura.