Mobile application is also a business whose owner is interested in the monetization of the product. For this reason there are a lot of tools, strategies, and models. Some are efficient for all types of apps, others are advisable only for service apps, etc. There are about ten major strategies of iOS and Android monetization, below we have a look at 8 most popular ones.
. . . . . . . . . . .App monetization strategies
So, we have selected 8 most widespread strategies that can help you get revenue from your mobile application:
- Advertising. This is a universal tool for any kind of app, including gaming applications. The ads can be native, banner, interstitial, interactive, or in the form of a short video clip. This is the easiest model that allows you to start getting profits from the very beginning.
- In-app purchases. The users pay real money for virtual currency which can later be spent on various additional features within the app. It is a working strategy for gaming applications, as it utilizes the principle of psychological dependence of the user on virtual reality.
- Freemium, which is a paid access to an extended version of an app. This way, the audience using the free version can only see a limited range of options and cannot enjoy the full range of possibilities. If they want, they can purchase the full version, or keep using the free one.
- Paid subscription is similar to the previous method, with the only difference that payments are made on a regular basis, usually automatically every month. This is an efficient tool for various streaming apps.
- Paid download. This is, probably, the least efficient model, however it is still in use. You set the price per one download of your app and get instant income from every new user. There are less and less users willing to pay for the download, though.
- Paid features. For instance, a free version of a VPN app covers 4 countries, whereas the paid option covers dozens of locations, or even all of them. The paid “no ad” version of an app is also an example of this model.
- System of commissions is feasible for marketplaces and service applications. The model is functioning rather well, however, the downside is that the owner of the app will become the person facing all the complaints from the customers and clients.
- Combined models. As it is clear from the name, several models are used within the same app. E.g. you make money on ads and your game also features a visual shop where the users can buy additional tools and services.
Conclusion: which model is better?
Objectively, monetization via advertising looks like the preferred option. This field is actively developing and there is no need to make users pay for anything and force them to spend real money. Another advantage of advertising is that it is beneficial for all the niches – games, services, marketplaces, dating apps, etc.
