According to the statistics mobile apps generated $935 billion in revenue in 2023, as compared to 2021 which was $693. This shows that the mobile app market is continuously growing and yet will grow more.
Mobile app serves two main purposes, to get your content in front of the audience and to generate revenue. Though, the first part is easy, while the monetization is a tricky part.
There are lots of ways to bring revenue, but the question arises which of these app monetization strategies best matches your content, needs, and audience? Keep in mind that every app needs different monetization options, so you have to design your app development strategy accordingly.
However, it would be great if you worked with professional Mobile app development company in Saudi Arabia to develop your app from the start with a considerable app monetization strategy.
This blog will walk you through the popular monetization strategies and how to select the right monetization strategy for your business.
What are App Monetization Strategies?
Mobile app monetization is the process of generating revenue from the app without fixing a download fee. First, you need to understand the app monetization types and strategies to bring the app revenue.
There are several models for app monetization to opt from, many of which can be combined to spread your revenue streams. But for your business app, monetization solely depends on the app’s vertical and target audience, and consider how this overall journey affects the user experience.
With every type of monetization, it’s necessary to consider how it may affect not only your app’s growth potential but also engagement from users. Some strategies may be more effective than others in terms of bringing revenue and usually include various strategies from banner ads to subscriptions and the like. As a result, developers must consider a variety of app monetization strategies while developing an app.
So, let’s move to the next section to learn the most common app monetization models.
Best App Monetization Strategies to Consider in 2023
Do you want to monetize your app with different strategies to generate revenue? We will discuss some tried and implemented methods to guide startups to monetize their apps.
You can also connect with the Mobile app development company in Dubai for your business-oriented solutions, as they offer an abundance of opportunities for businesses that want to stay ahead of the competition in the booming market. Here we go…
In-App Advertising
If you have not intended to incorporate ads in your app, then you are missing out on a great opportunity to produce revenue. Mobile advertising has notably enhanced the interaction between advertisers and consumers, and this is considerable due to the sheer amount of time people spend on their smartphones every day.
However, many people don’t want to pay for the apps they use so commonly when they already have a free or cheap alternative. App developers can take benefit of this by incorporating ads into apps to generate money without charging people for downloads.
In-app advertising is the best strategy to boost mobile ad revenue, and it’s not going to slow down anytime, with predictions showing ad revenue obtained from in-app ads will almost boost triple by 2025, reaching $226 billion.
Types of Ads
Banner Ads- A banner ad is an advertisement designed to deliver and display ads in certain places within an app. They usually target the user based on the user’s interest and data.
Video Ads- Video ads let you show ads within the app, with two options for in-stream & out-stream ad types.
Interstitial Ads- they are full-screen ads that occur between phases of the user’s app experience. For instance, if a user experience includes choosing a video from lists, the interstitial ad may appear before the video loads.
Native Ads- A native ad merges with the design aspects of your app and may even be proposed to look like another post or feature within it.
Rewarded Ads- The main idea behind reward ads is to offer something to the user for viewing an ad. Rewarding a mobile game user with another try at a failed level if they watch an advertiser’s video is the best example of a reward ad.
Gamified Ads– these ads are like mini-games and urge users to connect with them.
While selecting to monetize the app with ads, there are lots of considerations, specifically around user experience to keep in mind. If you want to incorporate the ads in our app for monetization, design your app and UI accordingly.
In-App Purchases
It is another and the best monetization way that is gaining popularity, especially in gaming. It is the best choice for gaming apps for multiple reasons. In-app purchases let players use real money to purchase features or items while playing a mobile game, which can be anything including free lives, extra coins, and a chance to unlock unachievable levels.
However, the smart way is to monetize your app according to user behavior and incorporate the payment method. When a person wants to make an in-app purchase, the amount will be charged to their credit card.
Moreover, there are different categories of in-app purchases available for app developers, each has its own features & performances.
App Subscription Model
If you don’t impose a charge on app download but would impose a monthly or annual fee to use it. This is the most popular mobile app monetization technique.
The popularity is demonstrated by the sheer amount of revenue the subscription model generates for an app. It would be good to build up different subscription packages with differing levels depending on what your app is offering. For different user categories, you can offer a basic subscription, a pro subscription, or a premium subscription.
Affiliate Marketing
By endorsing other pages, services, and goods through your app and putting affiliate tracking in place, you can monetize your app by using affiliate ads. As people love to recommend things to each other, that’s the reason affiliate ads are effective and useful in converting the audience into conversion.
Conclusion
Now you are well aware of how mobile applications can be a revenue generator for your businesses. It lets you expand the business and make connections with customers you may never reached before.
Mobile app developers need to determine which monetization strategy works best for the platform and implement it properly. We have mentioned the best monetization strategies that must work for your business.