How To Build Your App Monetisation Strategy
23 Sep 2023Content
Table of Contents
When it comes to launching mobile apps, innovation is not enough to ensure your concept’s success in this oversaturated market. In June 2023, about 90,000 mobile apps were added to Google Play Store alone. With this huge volume of competition, simply releasing your app is no guarantee of success.
In this article, we’ll explore the strategies, models, and techniques that can transform your mobile app idea into a sustainable revenue stream.
What is Mobile App Monetisation?
Mobile app monetisation involves the process of earning income from mobile applications. This involves implementing various strategies and models to earn money from app users.
Let’s consider the following example:
Imagine you’ve developed a fitness app. You can monetise it by offering premium workout plans, selling fitness equipment, or displaying ads to users.
In other words, there are several ways to monetise a mobile app, each with its own perks and disadvantages. The key is to understand their benefits and challenges and choose the one that aligns with your audience and business model.
Why Do You Need App Monetisation Strategies?
App monetisation is essential for several reasons, including:
- Sustainability — It ensures your app can continue to operate and improve.
- Profitability — Monetisation can turn any app into a profitable business.
- User Experience — A well-executed strategy maintains a positive user experience.
For example, if your language learning app offers premium features, you can invest in improving the app’s quality and adding new languages, benefiting both you and your users.
How To Monetise Your App?
To monetise your app effectively, here are the steps you can take:
Analyse Your Target Audience and User Base
Understand who your users are, their preferences, and their pain points. This information helps you tailor your monetisation strategy. At EB Pearls, during the planning stage of your project, we help you create buyer and user personas for better market positioning, giving you a competitive edge.
Think of it this way: If your app is a gaming platform for adults, offering in-app purchases for additional game levels or characters can be a great way to monetise your app. However, if you’re targeting children, it might be more efficient and ethical to generate revenue through well-moderated in-game ads.
Define Your App Monetisation Strategy
Ultimately, choose a monetisation model that aligns with your app’s purpose and your user base. Common models include freemium, paid, and in-app advertising.
Here’s an example: For a recipe app, offering a free version with basic recipes and a premium version with advanced cooking tutorials is a viable strategy.
Understand User Acquisition Strategies
Explore methods to attract new users to your app and retain existing ones. You can turn to app store optimisation (ASO), social media marketing, and partnerships to reach a wider audience and give your online presence a boost. Don’t shy away from promoting your app and running targeted ads on social media platforms to reach potential users interested in your app’s niche.
Different Ways To Monetise An App
The secret is to focus on long-term profitability. Continuously engage with users, update your app, and adapt to changing trends. Generally speaking, when you’re launching an app, you’re in it for the long haul, so you need to consider scalability and sustainability when crafting your monetisation strategy.
Below we’ll explore some of the most commonly used app monetisation methods, in no particular order:
The freemium model offers a free version of your app with optional paid upgrades. Users can access basic features for free and choose to purchase premium content or features.
Example: The popular mobile game “Candy Crush” allows users to play for free and offers in-app purchases for hints and extra lives.
Paid App Model
In the paid app model, users can pay a one-time fee to download and use your app. This approach ensures that users receive immediate value as they gain full access to the app’s features, typically without any further in-app purchases or advertisements.
Example: The “Minecraft” app requires users to purchase it before downloading, offering the whole game experience without additional investments.
In-App Purchases (IAPs)
Although IAP is not a standalone model, in-app purchases enable users to buy virtual goods, upgrades, or content within your app, whether the app is free to paid.
Example: The “GoodNotes” note-taking mobile app for Android tablet devices that requires users to pay for a yearly subscription or pay a one-time fee while also enabling users to make in-app purchases like stickers.
You can also generate revenue by displaying ads within your app. There are two main types: banner ads and video ads, each offering distinct benefits. Banner ads are generally less invasive than full-screen ads, commonly found at the top or bottom of the app screen. Video ads, on the other hand, provide immersive content during natural breaks. Balancing ad revenue with user experience is key to success.
Example: Many popular games display banner ads when relevant and offer users the option to watch video ads for in-game rewards.
App Stores and Downloads
Decide on the right app store(s) for your mobile app and consider factors like your target audience and platform compatibility. Boost app downloads through effective marketing, user reviews, and app store optimisation (ASO) techniques.
Example: Finance app “Revolut” encourages users to invite friends by offering referral rewards, resulting in increased app downloads.
Other Monetisation Strategies
For a sustainable stream of revenue, you can offer various subscription tiers with specific features, encouraging users to subscribe for premium content.
Example: The “Spotify” app offers free, premium, and family subscription plans, each with distinct benefits.
Sponsorships and Partnerships
One surefire way to attract users and generate revenue for your app is to collaborate with brands or influencers to promote their products or services within your app.
Example: A running app can partner with sportswear brands for sponsored challenges and rewards.
You can also earn commissions by promoting affiliate products or services within your app. This means that every time your app users click on affiliate links and make purchases, you receive a part of the sales revenue.
Example: A recipe app can include links to kitchen equipment, earning a commission for every sale made through the app.
Frequently Asked Questions
Have any more questions? Our expert team of app developers is here to give you the answers you’ve been looking for — contact us here!
How do I choose the right app store for my mobile app?
We recommend taking into account your target audience and their preferred platforms. Create the user persona and research each app store’s policies and requirements to make sure these align with your strategy and user base. Learn more about choosing the right technologies here.
What strategies can I use to increase app downloads?
Implement ASO methods, encourage user reviews, utilise social media marketing, and consider referral programmes. Here are some key benefits of employing these techniques:
– Enhanced app store visibility
– Improved discoverability
– Higher volumes of downloads
– Targeted user acquisition
– Reduced cost per user acquisition
– Streamlined app revenue
– Expanded audience reach
What are some effective ways to boost app revenue?
You can diversify monetisation methods to increase your app revenue. Mix and match revenue-generating models but, most importantly, listen you your users and focus on making improvements based on their feedback.
What are the legal and ethical considerations for app monetisation?
Make sure you’re being honest and transparent when it comes to pricing. Make user privacy a priority as well as comply with app store policies and legal regulations.
How can I reach a balance between revenue generation and user satisfaction?
There are many efficient ways to ensure user satisfaction while generating app revenue. For example, try to offer value in both free and premium versions, avoid intrusive ads, and consistently monitor user feedback.
Final Thoughts on Mobile App Monetisation
What can set your app apart from your competition is coming up with the best app monetisation strategy — a must for the success of your mobile app. It’s about connecting with your audience, and exploring various monetisation methods, all while maintaining a user-centric approach. This way, you can create a profitable mobile app that also delivers a positive user experience.If you need help with your next mobile app development project, our team is here to help! Contact EB Pearls today and we’ll get back to you with a detailed quote.
Start your app development journey now
“We’re very happy with the results of EB Pearls’ work. Since its launch, the app has had over 7,000 downloads, with around 6,000 users completing the signup process in the first 6 weeks. ”
— Founder at Intro Dating