Expecting your app to mint lucrative amount of moolah is a dream of every app developer!
I am 100% assured with this statement and I am certain, you all must be too… as the mobile app concept gets an ultimate aim behind its inception and that is making a reasonable amount of recognition, which consequently leads to money production.
I hope I have picked the right musical chord in your heart and mind J
Well, hopping back to my main aim of writing today, we all can see that how apps have revolutionized the way we think. I guess you wouldn’t need a further explanation of the aforesaid statement. Indeed we all are very much aware with its profoundness.
Now, that we have dived into various apps and understood its sky-high importance, let us try to understand the concept of app monetization.
Why Does App Monetization Matter?
App monetization plays a crucial role in many products and services, and this is what makes it a MUST-TO-HAVE aspect for different businesses.
However, with the rising competition, there are millions of apps created on a daily basis, and sadly not every mobile app guarantees incredible success rate, which finally translates every effort made by the app developers, to go in vain.
If you wonder, that an app works merely as a tool, then you are highly mistaken, as, in the current scenario, mobile apps have crossed that level, and acts as a sustainable source of income for every business.
Quality of App Cannot Be Compromised
Albeit, to incur the profit out of your mobile app, you must ensure that your app is offering the quality-laden usability features to the users, so your app would not earn the money only, but would win the hearts of the users as well.
Today, the market is heavily flooded with innumerable apps. Users have alternatives at a click and it has got very easy for them to switch from one app to the other.
It has, all the more, become extremely important to consider factors like preparing a quality software specification, defining functionality, trying to understand its audience better, finding the intent of promoting the app, among many others which could help in maximum app monetization.
App developers, all across the globe, are looking for full-proof strategies for monetizing their apps. This has been one of the attention -seeking areas for every app developer.
So the bigger question comes!!!
Is every app a success from the monetary aspect? Are there strategies to monetize apps? Which strategy could be called a truly successful one?
Let me burst that bubble for you my lovely readers.
I shall make you aware of all models that can help in app monetization in a very simple yet a comprehensive way as stated below. I would try and state the models below as simple as possible so that by the end of you reading it, you would have gained some meaningful insights of this entire concept.
This Freemium model offers free downloads but to access to certain exclusive features of the app, users have to pay to enjoy its access. It, hence, implies a combination of the free access and the premium access as well.
Unlike the pay per download model, this model gives a chance to all prospective free users to try the app and enjoy and in a process attract them to pay for the app for a worthier experience. The model offers a number of benefits listed below:
- It paves a way for the app to build up a larger user base by offering the app services for free
- This model enables a user to test the app’s services and to further make sure of the worth they would derive by paying for it.
- This type of model is flexible and can be made functional in almost every genre of the app industry.
However, the app developer needs to consider certain factors to not make it a complicated one. To name a few, some of the pointers include offering too much or too low for free and to keep up with the expectations of the payers.
Premium app model charges the user a fee to download the app from the app store. This seems to create a ‘cost barrier’ in the minds of the user. What becomes significant in this model, then, is to market and project the app and its services in such a way which would make it hard for a free app to compete with.
This model, normally, tends to have higher user engagement users. This happens because when you are paying a good amount for the app, your general tendency is to extract the most out of it.
We all know how online advertising has expanded in the industry. To talk of revenues from online advertising, the graph shows a rapid and steady rise. In this model, advertisers pay the owners to place advertisements in the apps. What needs to be taken care of in such models is which ads are to be shown when and for whom.
The demographic factor has to be kept in mind while doing so. Developers need to find the balance between the no. of advertisements, where and when they appear, and how users experience them.
This model has more of a straightforward approach. Any vendor sells physical goods through an app which is free to download, acting as a portal for users to discover and purchase the product. Reasons for availing this model would be high because the profit margins of e-commerce businesses are comparatively high.
This model enables a user to download the app and access a certain amount of content for free and then prompted to go for a paid subscription to view more of the available content. This strategy is highly compared to the Freemium model but there are some fundamental differences between the two.
This app monetizing strategy makes use of things to monetize. It depends on the selling of either digital or physical goods and services. There is a wide array of goods and services that are being sold through in-app purchasing. The profit margin for this model is higher considering it relies on digital goods.
Among the recent times, this model has is the latest entry in the list yet most preferred. In this model, developers seek partnerships with certain brands and advertisers who in turn receive rewards when specific In-app tasks are completed. The app earns money by having a share of the revenue from redeemed awards. In this model, brands and advertisers get to be a part of the incentive system.
The success of the application depends on the wise decision of picking the correct model for a particular business. Thus, to aid your Android application development process, you must pick the right mobile application development company in UAE, which holds the relevant years of experience and has the exposure to work upon the strategies based on the above models to increase app monetization and bring in more profits for you and your end-users.13