6 Effective Strategies For Monetizing Mobile Apps

The mobile application market has tremendous sizes. In this case, the dominant position here is occupied by Google with Play Store and Apple with the App Store. According to Finances Online, in 2019, almost 6 million mobile applications were available for download. Of these, 2.57 million belonged to Google, 1.84 million - Apple, 669 thousand - Windows, 489 thousand - Amazon AppStore.

The prosperous industry of mobile applications provides developers and marketers around the world with many unique opportunities. However, it is worth considering that the applications market is currently overflowing with interesting and creative projects. In terms of high competition, it is not enough to simply develop and launch a mobile application, an effective marketing strategy is necessary for its promotion. Competent monetization is one of the most important factors for maintaining competitiveness in a dynamic market.

Monetization of the application is required for 2 reasons:

- It helps maintain a high level of income from the application;

- This motivates developers to improve user experience (UX).

When monetizing the application, the income depends on the number of active users. This indicator is directly related to user experience, so developers need to pay special attention to its continuous improvement. A good interface should be externally attractive, easy to use, and interact-oriented with users, as well as possess competently planned digital architecture.

What is the monetization of mobile applications?

Monetization is a range of measures to extract profits from a mobile application. As a rule, this process is associated with the transformation of the number of active users in significant income. Most mobile applications are used for monetization or free-to-pay model, or its alternative - Freemium. Advertising, shopping in the application itself, disposable payments, subscriptions are the most popular methods of monetization.

How to monetize a mobile application?

1. Advertising in the application

This is one of the simplest and most widely used mobile application monetization strategies. Showing third-party advertising in his applications, you can receive three types of income: price per thousand shows (CPM), the price per click (CPC), and the price per action (CPA). The most efficient and profitable types of advertising: banners, native advertising, interstitial ads, and affiliate programs.

2. Purchases in the application

As statistics show, almost 47% of mobile application owners use the sale of any products for income in non-chairs. For the game and purchase applications made by users, 79% of profits have already been making up. Candy Crush is an excellent example of how effective the monetization in which users make purchases within the application itself. This strategy works perfectly for applications using the Free-to-Pay model.

3. Data Monetization

When using mobile applications, users often share any information about themselves. Each click, each subscription, and the completed form are a source of valuable data that allows developers to understand the behavior of the user and its desire. By regularly collecting information about users and analyzing it, you can get important information about the needs of the target audience. This allows you to improve the process of personal personalization process, which in the long run not only helps to save existing users but also attract new customers.

4. FREEMIUM model

This strategy is incredibly popular among mobile application owners. This model assumes that users can download free applications for free, but to access additional functions, they need to purchase a premium version at face value. Such a system is good because users are not necessary to pay for a subscription to access the application. They have the opportunity to understand, the application like them or not, but only then for a certain fee to move to its improved version. The owners of the application, receiving income from premium users, can improve user experience due to a wide audience using their product.

5. Email and SMS-Marketing

According to statistical data, by 2023 the number of people actively using e-mail will reach 4.3 billion. While 73% of Millennials see Email as an effective communication channel to discuss various business issues and business offer promotion, almost 80% of Companies are considering email marketing as one of the most productive ways to hold customers.

On the other hand, people open SMS messages with a probability of 98%. Statistics show that customers buy SMS coupons many times more often than their other varieties. Thus, with a competent approach, email marketing, and SMS messages are effective ways to obtain constant income from mobile applications.

6. Affiliate programs

The partnership implies cooperation with companies that have a similar target audience. For example, combining efforts with a well-known company can simultaneously increase both the client base and income size. Sponsored content allows you to use the target audience of partner companies, in parallel exploring new markets and improving their mobile applications.

Conclusion: 

When it comes to the monetization of mobile applications, you should not rely only on several income strategies. It is important to use the advantages of various methods to achieve maximum results. Constant work on improving user experience, analysis and competent use of data from users, regular updates, and a unique trading offer are some factors playing an important role in creating a successful mobile application.