Top Mobile App Monetization Strategies to Try in 2024
May 8, 2024
The Android app store owned by Google has over 3.3 million apps listed across different categories. The Apple Store, on the other hand, has over 1.81 million non-gaming apps and 472,000 gaming apps. This recent data is sufficient to ascertain how massively mobile app development is gaining popularity. It’s easier than it sounds to join the mobile app development bandwagon with any Android app development company. What’s not easy is finding the right monetization strategy. Any Android or iOS app development company can develop an app for your business. But only expert mobile app development companies like Clavax can offer you genuine consulting services for choosing the best monetization model.
This blog will discuss the top mobile app monetization strategies in 2024 that can make your Android or iOS app a profitable affair.
What is Mobile App Monetization?
95% of the apps on the Apple Store are free for users, but these apps aren’t zero-revenue for businesses. Zero-revenue apps are a mirage, as every business sets up an app with the intention of earning profit. Mobile app monetization is the mode through which an app earns revenue. Most free apps earn revenue from running ads on their platforms. In-app purchases, in-app advertising, and freemium models are a few other ways to monetize your app.
Mobile app monetization is important for every business to sustain. Without earning any revenue from their app, a business will not be able to meet maintenance costs. A mobile app requires quality improvements time and again. That’s why updates are released on the apps. Through quality improvement, businesses ensure that their Android apps stay relevant and engaging.
Having a monetization strategy is important for businesses to strike the right balance. Too much in-app advertising or aggressive revenue models can drive users away. Too many ads on the platform are irksome for users. When you opt for the best iOS app development company like Clavax, you get the best consulting services regarding the monetization model.
The Best Mobile App Monetization Strategy for 2024
Go for the Freemium Model
The freemium monetization model is gaining popularity rapidly. It’s a subscription-based model where users are offered in-app purchases to access the premium features. Spotify is the best example of the freemium model. It’s a leading audio streaming subscription service. It allows users to sign-up for the app for free and listen to the songs of their choice for free. However, it doesn’t allow them to skip songs, listen offline, play tracks of their choice from a playlist, or listen to songs without ads. Users must buy a monthly or yearly subscription to avail themselves of these features.
Pros of the freemium model
- The freemium subscription offers higher user engagement as free sign-up attracts users to the platform, and free features offer them enough sneak peeks at the premium features.
- This model is scalable and can be adjusted according to the growth plans of a business.
- It allows users to try the features before they buy. Credibility is created through free versions that build brand affinity and loyalty.
Cons of the freemium model
- There’s always a chance that upselling won’t work. The majority of users might want to stick with the free version.
- Too many ads on the app might turn away some users, and they won’t want to continue with the app.
Consider Interstitial Ads
Banner ads often go unnoticed by users. Users conveniently scroll down these ads. Interstitial ads are gaining popularity as a method for app monetization. Interstitial ads run on the full screen, allowing customers to watch a video ad or graphic ad for a few seconds. These ads are transitioned so smoothly that they don’t hamper the user experience.
Pros of the interstitial ads
- These ads ensure better visibility, and there are fewer chances of being ignored by the users.
- Advertisers are willing to pay more as these ads offer a better CTR.
Cons of the interstitial ads
- As these ads run on full screen, there are chances that they load slowly, hampering the user experience.
- There are guidelines from Google regarding interstitial ads. Any discrepancies can lead to a penalty from Google.
Offer Premium Subscription
There are such apps that charge a fee for users to sign up. The revenue is directly related to the number of downloads. As such apps only offer premium subscriptions, the customer acquisition game must be strong. There are no free features to offer to lure users.
Pros of the premium subscription
- Premium subscription apps offer assured revenue from day one.
- Such apps attract long-term users and add to the longevity of the business.
Cons of the premium subscription
- Premium subscription apps are expensive for users, and if they don’t find themselves using them much, they will unsubscribe.
Enable In-App Purchases
This method is quite popular in gaming apps. It allows users to purchase boosters, characters, energy, unlock levels, and much more while they play a game. This method offers flexibility for the business to introduce new in-app purchases at any point in time. You can make use of real-time data analytics to understand the users’ behavior during the game. This way, you can strategically place the in-app purchase options to generate the maximum revenue.
Pros of the in-app purchases
- In-app purchases are convenient for users, as they don’t have to leave the app to make the desired purchases.
- Users are more likely to make purchases when they are engrossed in a game and enjoying their experience there. Well-placed in-app purchases garner more revenue.
Cons of the in-app purchases
- Users might feel pestered when they are prompted to make purchases in the middle of their app experience.
- Users might not like what they purchased and leave negative reviews about their experience, hampering the brand’s image.
Final Thoughts
Finding the best way to monetize your app can be tricky, and many businesses would want to consider seeking the help of experts. Clavax is an experienced mobile app development company with vast expertise in developing Android and iOS apps. As a leading Android app development company, we focus on understanding your business and its requirements before suggesting the best app monetization strategy.