There has been a significant rise in the number of businesses that are offering mobile apps across all major platforms. There are almost 1.6 billion mobile users globally and 52% of the time spent on digital media is on the mobile apps. Among the smartphone users, 89% of the mobile time is spent on the app. Mobile app is no longer an option but a necessity for businesses that want to target the users and rev up their sales and revenue.
If we go by the stats, the number of mobile apps on Google’s Play Store is around 1.7 million and 1.5 million on Apple’s App store. It clearly indicates that there is a very stiff competition in the app market and to earn revenue from the app, you not only require appealing design and performance but also a good marketing strategy.
Monetizing the mobile app comes across as the toughest challenge for the company. Launching a mobile app does not guarantee it’s success or increase chances of making money. This is why, deciding the revenue model of the app beforehand is always recommended.
There are basically three revenue models that you can choose from when it comes to app monetization.
- Free Model, where you earn by publishing ads.
- Freemium model, where you offer in-app purchases.
- Premium model, where you ask for a fixed amount for the app.
It has been widely observed that the free and the freemium model have proved to be the most successful. At times, freemium apps also go for ads that are shown to selective users who do not go for in-app purchases. If your mobile app is backed with a nice idea implemented equally well, the chances of making money grow few knots higher. Even to publish third party ads, your mobile app needs to be popular and must have a fixed number of users.
Monetizing your app using these three techniques
Advertisement is the most common method to earn revenue from the mobile app. If your app has become popular enough to host ads, you can make good money by posting custom ads. These ads are also called targeted advertisement because you can show ads based on the recent browsing activities of the users.
To show these ads, the websites collect the data from the user’s device and analyze the shopping behavior and based on that presents the ad. This form of advertisement increases the chance of conversion as the users are shown products and services they have already seen and reviewed.
Custom ads can let you gain more revenue than other forms of advertisement as the conversion rates are usually on the higher side. Google Adsense, DoubleClick are some of the agencies that offer this kind of advertisement services. Businesses like e-commerce, real estate, jobs, and travel benefit hugely from these ads.
Automated ads are taking over the advertisement industry as almost everything is getting automated thanks to the advancements in the technology. These ads are presented in an automated way so that the ads reach out to the maximum number of users without much hassle. As less effort is required to publish these ads, the revenue generated is worth it.
Automated ads also prevent ad forgery that wastes a company’s resource. There are systems in place that allow only those ads that will actually be viewed.
Considering these points, such advertisement models will definitely attract businesses to publish their apps on popular apps because the visibility of the ads is the maximum in case of ads.
When you have got a popular app, why go to others for promotion? You can promote your own business and earn good revenue without spending on CPI or other ads. Self-promotion can be done through blog writing, push notifications, and other ways so that the users are engaged better and in a more personalized manner. When users are targeted with self-promotion, there is an increased chance of user installing and using the services offered through the app.
Every app is developed and launched to make money. Building a great app that is not able to earn revenue will not be counted as a wise business proposition. The three methods discussed in the post are quite effective and have been tested on many mobile apps with good success rates. You can also implement them in your app and reap the benefits of enhanced revenue from the app.
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