We live in a highly digitized world that is changing the way businesses earn revenue. A lot of companies are becoming more technologically inclined by creating apps for their existing business instead of just relying on websites. Upon successfully building your app you are left to consider your options at monetizing it. In this article, we would touch on How to Monetize Your Mobile App.
When choosing a monetization strategy, it’s important to consider your target audience and the value your app provides to them. It’s also important to balance monetization with a positive user experience to ensure user retention and satisfaction.
Data-Driven Strategies: Leveraging off data from your prospective clients and current user base is a suitable way to maximize your app’s capacity to make revenue. You can do this by observing and learning from analytics gotten from the preferences, and behavioral patterns of your users.
With proper application of this method, you will need to find out critical information to get better results at monetizing your app. This will involve finding out which clients spend a lot of time and money on the app and placing your focus on them rather than on prospective users.
According to Localytics, 20% of users never returned to an app again after using it only once. So, it is notable from this data that there is a potential that new users may only download your app and never use it after that. This information shouldn’t discourage you but rather inspire you to find out why users are not using the app after downloading and compare their decision-making with fanatics who rave about the app, or in other words, your loyal customers.
These findings will help you create a better user experience that will keep consumers coming back. To ensure you are maximizing your potential to earn, you need to be knowledgeable about the strategies that appeal the most to your target audience’s.
Monetizing a mobile app in Nigeria can be done in several ways. Here are some strategies on How to Monetize Your Mobile App:
- In-app advertising: You can place ads within your app and earn revenue based on the number of clicks or impressions they receive. You can use advertising networks like Admob or Facebook Audience Network to serve ads to your users.
- In-app purchases: Another common approach to making money from your app is to allow users to download the app for free but offer them additional in-app services or features that they can access solely through payment. A lot of apps will give you a free demo and then ask to charge you for the full explicit version of a game or editing app. You can offer users the ability to purchase virtual goods or premium features within your app. This is especially effective for gaming and productivity apps.
- Subscription model: Many subscription apps are free to download, offering users an engaging yet limited service. If users want the full experience, they’ll need to subscribe for a monthly or annual fee. This can be an effective way to drive installs while monetizing your most valuable users. You can offer users access to premium content or features on a subscription basis. This model works well for news, music, and video streaming apps.
- Sponsorships: You can partner with brands or companies to promote their products or services within your app. This can be done through sponsored content or branded experiences.
- E-commerce: You can sell physical or digital products through your app. This works well for online shopping or marketplace apps.
- Free/Premium model: You can offer a free version of your app with basic features and charge for premium or advanced features. This model can be effective for productivity, health, and fitness apps. Another way businesses are monetizing their app is by creating an additional paid version of their original app with more features and perks that only becomes available if a user downloads and pays for the app. You might be thinking what the point of the original app may be. The original app serves the purpose of marketing the services you will offer upon upgrading to the premium app. So, depending how demanding and appealing the paid app is, the users can decide to make the switch.
Advertising monetization models.
The use of in-app ads is the most common way to earn revenue from an app. It is reported that 50% of mobile gamers prefer games with free ads. This model favors apps that thrive off of being free in the app store. In turn this format allows free apps to continue to serve their users and improve their preferential experience, thus increasing and maintaining revenue for the app.
Some of Types of Ads include:
1. Banner ads: These ads are strategically placed at the top or bottom of an app’s layout on the screen. Its purpose is to prompt you to click the ad in order to link you to the website of the ad.
1. Interstitial ads: This format of ads is displayed with a full screen. They cover the entire page of the app unlike banners that are placed at the top or bottom. This ad plays the role of preventing “banner blindness” – where users have become completely used to banner ads that don’t even pick up on it. Full screen interstitial are disruptive, it’s deliberately in your face. However, to be effective, these ads should pop up at common intervals, such as in-between levels of a gaming app.
2. Native ads: As the name implies, these are paid ads that are designed to blend in with the content that the mobile app user is experiencing. It can be in the form of infographics or articles that match the content on the site being used.
3. Video ads: Video ads are popular because it can produce the highest CTRS compared to other forms of ads. Once you know what ad format you would like to use, there are three types of ad revenue available to buy campaign inventory.
1. Cost per thousand impressions (CPM)
2. Cost per click (CPC)
3. Cost per action (CPA)
So, How to Monetize Your Mobile App? There are many ways to monetize an app, so you should consider your user’s needs and the experience you would like to provide for them in order to maximize your potential at earning revenue. Study your user’s habits and preferred choice of ads to help narrow down the form of ads you decide to utilize. Forcythe is a partner of choice for many businesses who are already maximizing profits through content marketing strategies executed by our team of proficient experts. Are you looking at taking your revenue growth to the next level? Then let’s talk.