Top 3 Mobile App Monetization Strategies
Mobile app monetization is becoming more accessible and necessary than ever before as the number of free apps is increasing year over year.
As of 2017, there are over 3.5 million apps available in the Google Play Store and 2.2 million in the Apple App Store alone. According to TechCrunch, more than 90% of those apps are free.
To keep up in a highly competitive market, developers are always finding new ways to earn revenues through their mobile app. The trick to a successful mobile app monetization strategy is that it should look and feel like a seamless part of the app experience.
We’ve provided three key mobile app monetization strategies that can help drive revenue in 2018, whether you fully invest in one as your main source of revenue or find a balance between a few for a mixed revenue model.
1. Working with a Data SDK Partner
As a mobile app developer, your app data can translate into a new revenue stream.
Mobile apps generate a lot of rich insights into what today’s users are doing and where they’re going so developers have a huge opportunity to monetize their app data by working with data SDK partners.
While the most popular mobile app monetization models used by developers typically include paid apps, in-app purchases and/or in-app display advertising, the best app monetization tools are moving toward ad-free methods of earning revenue.
Working with a data software development kit (SDK) partner not only helps developers create more robust-featured apps, but also increases the potential for mobile app monetization without placing any interruptive ads or disturbing your app user experience.
A lot of this user data, which may include user’s anonymous personal information such as location, device information, and mobile behaviors, is highly sought after by those who are in different research fields.
In addition, digital marketers are always seeking the best way to accurately deliver ads to the most relevant audiences – and mobile is one of the best ways to do so.
Developers can build a powerful mobile app monetization strategy by selling big data to third-party companies, especially as their user base continues to grow.
How It Works:
- Developers implement the SDK (short line of code) into their app
- Users opt in to the app and its features
- SDK partners access device data and turn location or mobile app insights into monthly revenue
- Developers gain a deeper understanding of their users to craft a mobile monetization strategy and earn a monthly revenue stream from their app
It’s essential to work with partners who prioritize the security and privacy of your users and are transparent about the utilization of the user data. There are also anti-surveillance tools that you can implement to help protect your app from being intrusive to your users’ privacy.
With the help of a mobile data SDK, developers can access insights into who their users are – allowing them to build customized app experiences for them and delivering more personalized marketing to keep them engaged.
The more you know about your users, the better you can serve them, increase app retention, and drive revenue earning potential.
2. Email Marketing
Incorporating an email strategy with your app is one of the best ways to engage your users, drive brand awareness, and enhance your mobile app monetization model.
Your mobile app is a great way to push and promote content through newsletters. Whether it’s new updates about your app, relevant content, or announcements, an email strategy makes sure to keep your brand in front of customers.
An email marketing strategy can also help drive users to your website, which provides value for your app, brand, and for your consumers.
For example, Josh Anton, CEO of Drunk Mode (a safety and party app that prevents drunk dialing and helps track friends), sent over 1.5 million emails per month to convert college students into users of Drunk Mode during the beginning stages of his mobile app.
By consistently pushing content to the right target audience and launching a campus rep program across 100+ universities, Drunk Mode was able to drive over 250,000 new users with the help of email marketing.
3. In-App Advertising
For years, in-app advertising has continued to be the most popular app monetization tool, which is typically incorporated into a mixed monetization model.
While this helps drive revenue based on user impressions and clicks, there is also the risk of overcrowding your app and disturbing the user experience.
The ads in your app should be unintrusive to the user experience, but still relevant enough to catch the app users’ attention so they will still be engaged with your app.
Increase your MAUs and revenues with effective ads that generate steadier revenues and higher CPM.
Overall, in-app ads can serve pop-up ads, banner ads, video ads that offer rewards, and more to gauge the interest of users to drive overall click-through rates and revenues.
It’s All About Your Users
There are many different ways to effectively monetize your app.
Though advertising remains the most common monetization tool for mobile apps, developers can benefit from incorporating less interruptive methods into their overall marketing strategy.
It’s essential to do market research, understand your target users, listen to other app developer success stories and build the right revenue model for you and your users.
Build your mobile app monetization strategy, see what works and what doesn’t, and ultimately, make sure to keep your users satisfied and engaged with your app!