5 Monetization Strategies for Mobile Apps

Monetizing a mobile application is not complicated. It only requires a few simple steps to follow.

In this article, we will clarify the key points related to monetizing dating apps. Keep reading to learn about the top app monetization strategies and tips for choosing the right one.

Why is application monetization necessary?

App monetization aims to turn the attention and interest of your mobile app users into revenue. For those who want to develop their own app, monetization is crucial to generate revenue without funding. Given the growing popularity of mobile apps, this approach can be extremely effective. No need to charge users to install a mobile application. Typically, installing mobile apps is free, and only then users are asked to pay for additional features, subscriptions, and more.

This approach is more efficient because users can test the application and see if it meets their needs. Monetization focuses on the user experience and sometimes has a negative impact on it. Adapting UX to a monetization approach is a challenge for mobile app designers and developers.

App monetization strategies to generate revenue may differ depending on the type of app, business goals, and requirements. The strategies for monetizing a dating app, a food delivery app, or an e-learning platform are entirely different. The results of the target audience analysis are the main thing to consider when selecting the most beneficial approach. Even if your app is free, you can opt for several ways to earn money on it.

How to Monetize an App in 2021: 5 Strategies to Choose From

Let’s take a closer look at the main approaches to monetizing a mobile app.

1. In-App Purchases

This approach is also called pay-to-play. According to this strategy, the basic features of the application are free. If the user wants to improve the experience with an application, he must purchase an additional feature or set of features.

Alternatively, you can offer free access to enhanced features for a period of time. This improves user engagement and leads to increased app conversions. If you want to intrigue users even more, you can unlock some paid features for a limited time. You can grant users access to paid features through specific achievements or performance enhancements. It’s up to you to decide. All you need is to capture the user’s attention and make the paid plan more attractive.

2. Freemium and subscription plan

These models are similar in terms of user experience. According to them, the installation of the application is free. When users interact with your application, they realize that this solution can solve some problems and play an important role in their lives. Developers can quickly earn considerable income, according to statistical data. You can offer free use for a limited time after installation. This way, users get used to the improved experience and are willing to pay to extend it. It is a stable and reliable method that engages many users.

3. In-app advertisements

This is the most popular approach used by mobile app owners. As a rule, this requires a careful choice of companies with which to cooperate. Here are the main types of revenue generated by monetizing an app by placing ads:

• CPC (cost per click)
• CPA (cost per action)
• CPM (cost per thousand impressions)

The last method is probably the most popular as it has minimal effect on user experience. Also, clicks are not necessary to earn money.

The advertising approach of paying money to remove ads is quite outdated if used alone. Usually this is an addition to freemium or in-app purchases. In recent years, the importance of user experience and engagement has increased, and more and more developers claim that ads are losing their effectiveness. When a mobile app is overwhelmed with ads, it will negatively impact users in the long run.

4. Partnerships and sponsorships

Partnering with another brand is a solid way to promote and monetize a mobile app. The main criterion for selecting a partner is a similar target audience. Providing combined services can expand business reach and improve corporate image.

You can opt for shared ads and convince users to download another app. keep in mind that this approach may not be as extensive as subscriptions, but users will be interested in your services. This methodology can be beneficial for startups in their early stages as it goes a long way in raising awareness.

5. Combination of several methods

Many app giants, like Tinder, have used this approach. The main thing is to define the right pressure points and offer the most sought after and advantageous paying options. The advantage of this approach is that it covers the needs of various user segments. It is especially useful for applications with a large target audience. Although some users cannot afford to purchase a monthly subscription, they may purchase a particular desired feature. Remember that you need to add enough free features and not overdo it when promoting them. It’s essential to create a complete experience and offer paid features and enhancements.

The essential

Overdoing monetization and putting too much pressure on users can have the opposite effect. We hope our article has clarified the main methods of app monetization. Consider this point before building an app, as it is an essential part of your marketing and sales strategies.