Mobile Application Monetization Strategies

A large proportion of applications are started with the aim of directly creating sales. However, a small number do so economically. Careful thought of how you will monetize based on your user base, your product type, and market intelligence won’t guarantee profitability, yet it increases your chance of success. Here are a couple of mobile application monetization strategies and where to use them:

By Advertising

Free download along with marketing the approach to revenue creation of the application. Often used in a miscellaneous monetization model. In-app user experience would not be interrupted by purchases, and the nature of your application leads to regular visits, sessions that are long and gathering of behavioural data & demographics.

Paid Downloads

Users pay a one time fee for downloading the application. This model can be difficult to implement because its hard to convince users to pay without having tried the product, especially with a lot of free alternatives that are accessible. This type of model is suitable when you have a powerful advertising & PR existence, the program offers additional value over free, alternatives that are similar, worth is not incommensurate with cost, and youd like to link sales directly to downloads.

In-App Purchases

Users buy things inside the program, whether physical or virtual in nature. This type of model is suitable when you have services like application, gaming, or retail, and you can gain despite application store fees. It is suitable when In-App purchases add real value to users.

Freemium

The freemium model supplies free downloads of the program, including added superior features that users have to pay for to access. This model works on the ability to bring users that are free, and entice them enough theyre willing to pay to get superior features. This can be used when you need combined sales from users and ads, and superior attributes add users and remarkable value. Support purchase of added attributes and free variation is enticing enough to bring users. It is suitable when you have a big user base/long program sessions.

Subscription

Subscription focuses on gating access, but to content as opposed to attributes. This is appropriate to be used when your program is content-driven like music, videos etc.

Another wise measure is to research competitions monetization strategies while you are doing opposition research. It is possible to collect insights into what model they are using to do so and how they are making money.