5 Crucial App Monetization Models For Your Mobile App Development
Mobile apps are often used as another marketing channel for your company, and with all the work you’ve put into getting it released, you expect it to be a viable source of revenue. It is highly unlikely that developers and business owners create an application just because they have a lot of free time on their hands or just because they are good human beings. While creating a mobile app most entrepreneurs have one goal in their mind, and that is how do they reach their monetization or revenue gaining goals.
Some sources even indicate that global mobile app revenues amounted to over 365 billion US dollars in the year 2018 and 2023, this number is expected to increase 2.5 times up to 935.2 billion US dollars, and hence in this blogpost, we will take a look at how you can introduce 5 strategies or Mobile Revenue Models that will describe how you can gain money from your Mobile Application Development.
What is an App Revenue Model?
An App Revenue model is a revenue-generating system. It is a sales model that describes the sources of revenues through a mobile application. It also determines what benefit the commodity will have, how much it will be worth, and who will pay for this value. In simpler words, when we speak about app Revenue models, we are referring to the mechanisms and channels from which the smartphone app can produce revenue. Furthermore, If you plan to collect more funds for the application or sell it, investors will be involved in the app revenue model before purchasing or investing in your mobile app idea.
Identifying Types Of Mobile App Revenue Models
There are many app monetization strategies that you can work with and you can integrate several of them within one application to maximize your yield.
- IN-APP ADVERTISING
Integrating in-app advertising means that as the creator/owner you will be paid for serving ads that run on your application. To do this the app developer must partner with an ad monetization platform. In most cases, this is not a complicated procedure. To generate sufficient revenue from in-app ads, the app must have a large number of engaged users who interact with the app daily. So, before collaborating with any ad network, it’s a smart idea to focus on growing the user base.
Banner Ads are amongst the most common in-app advertising format. They appear just like regular feed on your app but are slightly smaller so that a user can detect it and choose to ignore it.
Next comes the Native advertising strategy. These apps blend into the design of the app and appear as if they were a part of the mobile application itself. Ads on Social media like Facebook and Instagram are great examples of this type of advertising.
Moreover, another app advertising strategy includes a full-screen advertisement. These are advertisements that take up the whole screen and float over the app page. They can be static or dynamic. These ad formats have one of the best eCPM ratings which, when used correctly, would not be an inconvenience to consumers. They can’t, however, go unnoticed by consumers. Here, the user must communicate with the ad device by either shutting it or clicking on it. Video advertisements can also fill up the whole device. It is a short video about the product that typically provides a connection to another page.
2. In-app purchases
In-app purchases allow the user to buy a feature of a mobile application that would be unavailable to users who would not pay for it. A great example of this might be the restricted content on online versions of magazines like National Geographic or The New Yorker where only the first 2–3 paragraphs are free and you might need to subscribe to the magazine to read the full article. Other options of introducing in-app purchases to your Mobile App Development process include -
- Purchasing consumables and non-consumables.
Consumables are features that can be used only once or that come with a date of expiration (such as V-Bucks in a fortnight) where once you spend all your consumables you might need to buy them again as they will not replenish themselves. Non-consumables on the other hand are things that remain there forever and do not expire (such a Skin you might have purchased on a game)
- Freemium Mobile Application Development
Freemium applications are free to download and have two kinds of features: basic features that are free to access and optional features that include payment. The goal is to allow a customer the opportunity to check out and experience all of the premium functionality in the hopes that he or she will pay to upgrade later.
3. Paid Applications
Creating a paid application means that your application would have to be purchased from the app store as opposed to most free applications. You can set the price for your mobile application to anything between $0.99 to $999.99 and you will get the money almost instantaneously as the user downloads the application from the app store(iOS), Play Store (Android), or Microsoft Store (Windows OS). With the paid app model, the revenue is strictly connected to new users downloading an app.
4. Having Sponsors for Your Mobile Application
Having sponsors for a mobile application is not an orthodox thing to do, but it has been done before. The way you incorporate a sponsor into your app is determined by the product and the partner’s priorities. Any easy choices include displaying the sponsor’s logo in various areas of your application presenting sponsors’ advertisements, and so on.
5. Data Monetization
Selling users’ data doesn’t seem all that good or fair at first, but it is, in truth, a legitimate source of income. Ultimately, you aren’t really revealing any sensitive details and all of the data is mimicked and not directly used. If your product captures data that is useful to research institutions, advertisers, business analysts, or other third parties, you should consider data monetization as a revenue stream.
The most important thing while creating your application is the user experience and that’s because only a good UX would attract more consumers and would create a strong user base which in turn would provide you with great monetizations.
Performing a Mobile App Development Lifecycle can be difficult for an individual, especially considering the complexities of every element. Fortunately, we at Website Developers India can help you build your App idea, create wireframes, design mock-ups and deliver the Most Viable Product (MVP). Contact us today to get in touch with one of our industry professionals and let us help you kick start your dream project.
