Many businesses across the globe have been driven towards monetizing mobile applications in recent years since they represent such a bright future for them to explore limitless possibilities. The mobile application market is booming, and many enterprises have shown an interest in taking their business to the next level. According to a study, the global mobile app industry was worth $106.27 billion in 2018 and is expected to grow to $407.31 billion by the year 2026, with a CAGR of 18.4% from 2019 to 2026. Enterprises have now found ways to monetize their unique mobile applications more than ever before.
Mobile app monetization is more diverse, ranging from in-app advertising revenue to subscriptions. Enterprises can implement a better monetization strategy to satisfy their customers as well as ensure the business is able to generate a profit for their developed paid app or install apps for free. According to a study, revenue from mobile apps will rise in most industries over the next few years, reaching over $613 billion by the year 2025. Mobile app monetization solutions are the way of the future, as they are the key to building a devoted user base, generating more capital, and boosting viewership.
What is Mobile App Monetization?
Mobile app monetization is the process of generating capital from developed apps. This allows businesses to focus on their user base and provide the best mobile app experience to lure their attention and also increase their revenue in less time. Enterprises can even add the option of advertising within the app to make profits.
Why is mobile app monetization so important?
Monetization is becoming more important for enterprises since mobile apps have become the most common way to consume content. Mobile apps have a great future because they're widely used by many sectors, from edtech to healthcare. In today's world, every sector has started using mobile apps to increase their business revenue quickly. Mobile app monetization is very important since apps are downloaded for free only during the period of installation. Enterprises need to provide an upgrade option to generate more revenue after users start to install their mobile apps. This technique will benefit both the company and its users in having a good relationship for a long time.
What are the benefits of free mobile apps?
- Enterprises with freemium models are more likely to gain users' attention since they’re willing to try something before buying the plan from a mobile app.
- Users prefer to download free mobile apps rather than paid mobile apps, where enterprises are able to quickly grow their user base.
- Free mobile apps work best since trying before you buy has proven to be a good strategy.
- Free mobile apps are less expensive when compared to paid mobile apps, which are more complex.
- Free mobile apps offer more visibility, downloads, and attract more users in less time.
- Users always prefer mobile apps that are free and also end up giving good reviews.
What are the benefits of paid mobile apps?
- Enterprises can generate more revenue with their mobile apps.
- The enterprise can keep track of users and their experience of using mobile apps.
- A low-risk monetization approach can help firms generate more revenue by supporting affiliate networks and partnerships.
- When customers download a mobile app, businesses can increase profits by offering upgrade plans.
- If enterprises provide users with paid apps, then competitors will be less compared to free apps.
- Paid apps are considered the best among users since the quality of service looks premium.
What are the various mobile app monetization strategies?
- Email marketing:
Email marketing is a tried-and-true strategy for monetizing mobile apps by increasing engagement and generating more capital. Enterprises can grow their email list by offering their users benefits like exclusive deals and discounts within the mobile app. This strategy will help businesses to have good relationships with their existing users and ensure that they end up using your products and services.
- Freemium model:
This model allows users to have access to the app for the basic version at no cost, while the premium version with extra benefits needs to be paid for users to experience the added value. Enterprises must ensure that a mobile app is fully working and that the premium version has been upgraded before the launch of the market.
- In-app advertising:
In-app advertising allows enterprises to place ads inside of their developed mobile apps for monetization. It enables businesses to generate more capital by advertising within the mobile app and benefiting users with rewards or displaying a particular product as an advertisement to attract them with better visual content in the video stream.
#1 Banner Ads: The banner ads are always motion graphics or static that don't get distracted from the content of the mobile app page.
#2 Interstitials: The interstitial ads are placed between stories and pages in the mobile apps for enterprises to make users watch the advertisements.
#3 Native Ads: Native ads are created by enterprises to merge smoothly into their app content and improve the customer experience.
#4 Video Ads: Enterprises can create the best video ad to place in the mobile app to gain users' attention quickly.
- In-app purchases:
In-app purchases allow users to make purchases within the mobile apps. For example, trading apps enable users to buy stocks and cryptocurrencies. Businesses can offer free trial periods for users, after which they can provide the option to pay to continue using the mobile app.
- SMS marketing:
Enterprises can make use of this SMS marketing strategy for monetizing their mobile applications to stay in touch with their users by sharing special offers, promotions, and updates. This strategy will help enterprises in attracting users to their mobile app and increasing brand loyalty.
- Subscription model:
The subscription model is the best way for enterprises to generate more revenue by offering users with upgrade options and benefiting them by removing advertisements from within the mobile apps. For example, if a music app allows users to listen to music with advertisements, and to experience an ad-free option, they’ll need to pay a monthly subscription.
What can enterprises expect in the near future?
- More ad space will be accessible as a result of in-app advertising. In-app advertising is a creative means of bidding on the content of a publisher. The core concept is that marketers compete for a piece of content by bidding against one another. As in-app bidding becomes more popular, any demand source will have a chance to win the idea. However, publishers will be able to get the best price for their content.
- It will become increasingly necessary for businesses to have a range of revenue streams. It is the most effective technique to monetize mobile apps in different ways. This will provide customers with not only a safety net, but also the power to govern how their app is used. The enterprise can diversify the monetization strategy to decrease dependence on a small number of high-value customers, resulting in increased app revenue and a more stable overall monetization plan.
Mobile app monetization is the next game changer in the growing world. Enterprises have been striving hard to come up with better mobile apps to benefit both users and businesses. The mobile app monetization concept has several strategies for enterprises to figure out and make use of the best to skyrocket their business quickly. Businesses focusing on both freemium and premium models will be able to draw the attention of customers quickly by providing the best offers. Enterprises willing to monetize their dream mobile app can gain professional support from the best mobile app development company to fulfill their business dreams.
Madhu Kesavan is the founder & CEO of W2S Solutions, a globally recognized android app development company that empowers enterprises and governments to experience digital transformation. With 20+ years in the IT sector, he leverages technology to implement his vision for a sustainable future.