App monetization is the most effective method for businesses to leverage a customer-base and earn money from the mobile application. Enterprises want to launch a responsive application that results in prompt revenue. However, the process of generating revenues from an app is more complicated. The most crucial step is driving revenues with the most advanced app-monetization tactics. The strategies to accomplish it may vary, and it may include in-app purchases, paid apps, advertising, etc.
Whether you’re trying to maximize your revenue or monetize the app for the first time, a flexible set of monetization strategies is required to consider. The most sought-after strategies can adapt to the market and audiences when it comes to app monetization. On that note, let’s elucidate the most effective and functional app monetization models that Topflightapps’ experts have found on the market to help entrepreneurs to make the right decision.
#1 In-App Purchases
In-app purchases let customers buy added features and goods in the app, such as valuable items, in-game currency, health points, extra time, etc. Not sure how to use in-app ads in the mobile game? You can choose in-app purchases, owing to their optional feature. Plus, they do not push customers and offer multiple choices to the users. These purchases create lasting relationships with customers. Relevant in-app purchase models are the freemium model and app subscriptions.
#2 In-App Advertising
In today’s Internet-centric world, app advertising is a great way to generate profit. it’sIt’s a predominant approach amongst app developers of the 21st century. In-app advertising happens to be a standout monetization model, whereby app developers get money for presenting third-party ads. There are multiple formats for in-app ads, including interstitial ads, banner ads, rewarded videos, video ads, text ads, and native ads.
#3 Lead Generation & Affiliate Marketing
Another unique way to receive profit from the app is to choose a company that cooperates with you and initiates building an affiliate program. With this program, you can host ads with exclusive affiliate links and receive a commission each time a customer converts into a sale or lead. Becoming a lead requires users to submit the contact form. While buying the product or service from the partner, the lead becomes a potential customer. Regarding sponsorship, affiliate marketing would work outstandingly when the business aims for the same target audience as the affiliate partners and focuses on similar purposes.
#4 Paid Apps
Premium apps or paid apps fall into the category of pay-once-and-get-all. When app markets initiated in doing the business, premium apps were the sole monetization model for every business. Even in the year 2021, this approach remains popular.
#5 Email & SMS Marketing
SMS and email marketing are the two fundamental ways of digital marketing, as these are the most exciting ways of connecting to customers. But instead of relying on these marketing modes, it is more evident to combine these with other marketing ways and achieve the most effective results. Marketing via smartphones has proved useful, as the potential customers remain just one tap away from their required products.
#6 Influencer or Sponsorships Marketing
Businesses can integrate sponsorships into the app. One can place the sponsor’s logo in the footer (on a splash screen) either as the icon or a pop-up. Special offers can be provided with these sponsors. For instance, fitness apps cooperate with the manufacturers of sports wearables to promote fitness smartwatches or trackers. For them, it’s a standard and most useful business methodology. For local businesses, too, promote services on the media networks, which is, again, a standard business practice.
#7 Data Monetization
Data monetization is a predominant one but calling it the most overlooked monetization model is not an exaggeration. As it’s the most unnoticed one, it requires special mention here. It’s noteworthy to mention that businesses collect data, and these are business assets. Although it’s a controversial method, it can be sold to the interested parties provided for wise use.
On this note, you can sell these pieces of information to institutes, researchers, product owners, and marketers as they are your potential clients and would never misuse or exploit the data. The fundamental rule is to monetize the prerequisite non-personal data, including device category, device make & model, display size, IP address, mobile connection provider, country, and network type.
With a multitude of monetization models, apps can find the one that fits their business requirements. But it’s always best to perform a survey regarding the monetization model’s perks and downfalls before opting for a single choice.