Mobile app creators, no matter how altruistic they may seem, still ultimately strive to make money on them. And that’s okay. How to monetize a mobile app ? AdButton experts have collected the best options.
The most popular methods of monetization
This year, we can already draw conclusions about what is included in the TOP methods of monetization:
- Implementation of subscriptions.
- Sale of advertising space .
- In-app purchases.
- Contamination in several ways.
- Freemium.
- Implementation of premium access with corresponding capabilities.
- Marketplace .
In fact, there are many more monetization opportunities. Let’s look at the main ones.
Sale of advertising space
This is the most popular and most profitable way to earn money . Agree, selling advertising space is much easier than making a user buy something – an application or a product. Moreover, the Internet marketing advertising market is moving to mobile versions – it has long exceeded 60% of the total amount of advertising on the network.
Among the many types of advertising here, the following are popular:
- Native advertising in applications .
- Advertising banners photo .
- Interstitial (full screen).
- Mobile video advertising (+with the possibility of getting something as a reward).
- Game/interactive.
An example would be any social networking app that broadcasts native social media advertising , video, etc.
Advantages:
- If the application is free, users are happy to install it, which means you can start making money on it right away.
- You can use multi-format advertising.
- It’s simple, accessible and profitable.
Flaws:
- The return on each user is minimal. A very large audience is needed for this to be economically profitable.
- Nobody has cancelled such a phenomenon as banner blindness and general irritation from the dominance of advertising products.
- In narrowly focused applications this method does not work.
In-app purchases and how to make money on them
This type of earnings is popular in gaming applications. Every gamer knows that you can buy game currency for quite ordinary money and then spend it on “pumping” characters, buying game goods, etc. For example, the well-known tanks. You cannot buy them other than for game gold coins. But you can buy coins for money.
Advantages:
- Users find such purchases understandable and familiar.
- The risks are minimal.
Flaws:
- If you don’t give the buyer constant “goodies”, he will stop investing in the game.
- It’s difficult (and expensive) to introduce such a purchase into the game without damaging it.
- There are very few whales (users who buy game currency constantly).
Selling subscriptions
Today, such industry giants as Google and Apple are actively promoting this topic. In this case, only part of the application’s functionality is provided for free. If the user wants to use maximum capabilities, he must buy a subscription and pay a monthly fee. For example, applications for narrow specialists, where relevant and unique articles are posted . Or TV series. The first episode is free, and if you want to find out that the killer is a plumber, subscribe for money.
Advantages:
- Payment is received monthly.
- Customer lifetime value and loyalty grow.
- There is a possibility of implementing a loyalty program for loyal users.
Flaws:
- Only a few people like to part with their blood relatives.
- The content must be truly unique and very useful, otherwise users will find a free option.
- There are some problems in the implementation of paid subscription. It is technically difficult to track all the nuances.
- Content should be updated regularly. No one will pay for 1 article per month, even if it is mega interesting.
Freemium
This method is very similar to the previous one and is typical for applications. Here, too, you can get some functionality for free, and pay for full access. An example is the Trello platform. You can download the application for free, use its wide basic functionality, but you can only add images, labels, etc. for money. The main thing here is to get the user hooked on the functionality of the basic model. So that he uses the application every day and can no longer do without it. Then it is much easier for him to fork out.
Advantages:
- This scheme is clear to users.
- It is easy to implement the idea.
- User loyalty is high, because the basic functionality is always free.
Flaws:
- It is important (and difficult) to make the basic functionality as useful as possible so that the user does not want to give it up.
- Paid features have to be really cool, otherwise no one will buy them.
- As in other cases, only a few like to pay.
- Unlike subscriptions, the user pays only once.
Premium Apps
This type of monetization is gradually losing ground, but is still afloat. We are talking about paid applications that can only be downloaded for money. Everyone knows about the Google Play and App Store stores. In stores, you can download games and applications in a currency convenient for you.
As you can see, the decline in demand is obvious. But there are still niches, such as healthy eating recipe collections or unusual games, that are still being downloaded.
Advantages:
- It is easy to create such an application.
- The principle of earning money is clear to everyone.
Flaws:
- For a user to want to download an app for money, it must be mega cool or unique. Otherwise, the client will find a free alternative.
- Games and applications of this kind require expensive promotion.
- The buyer makes a purchase only once and does not become a regular customer.
- Domestic pirates will very quickly turn a paid application into a free one.
By the most conservative estimates, pirates have robbed publishers of $80 billion in profits. Some companies have lost $80-90 million! And it’s not just about stealing paid offers. Pirates have learned to replace ads in free apps with their own and make money from it. Here is the TOP of deceived publishers with losses in the millions.
Marketplace
This is a trendy way to earn extra money on a percentage of the transaction. The idea behind this type of monetization is to create a market or platform where the user can meet with manufacturing companies or contractors. If the two parties make a deal, the marketplace owner receives a percentage for providing the platform.
Examples include applications for cleaning companies or taxi calls.
Advantages:
- The application is free for the user.
- By launching such a market, the owner simply reaps the benefits: it functions on its own.
- If the site becomes popular, you can introduce additional monetization methods . For example, placing advertisements for money.
Flaws:
- All the good niches are already occupied. Finding a free one is not easy. Besides, it needs to be “promoted”.
- The principles of the platform’s operation must be logical and understandable to users, so the owner has to invest in logistics.
- Implementing and controlling financial flows is not easy.
- The owner is responsible for the successes and failures of the users.
The horses got all mixed up…
It is absolutely clear that it is not necessary to stop at one method. And most users work on a mixed scheme. If, for example, you have a game and it has in-app purchases, this does not mean that you cannot show videos or ads to those who do not make purchases. Or you can offer a cool paid application, and in it additionally – in-app purchases.
Test different methods, combine and check the result, and financial well-being will not be slow to visit you.
