Monetization of apps has been of paramount importance to app developers, around the world. As per data gathered by Flurry Analytics, use of mobile web has dropped from 31m to 22m. As opposed to app use which has grown significantly from 2h6m daily to 2h19m. That is, a growth from 80% to 86% from user’s phone.
After Gaming (at 32%), the second largest app category to keep users busy is social media. Who can do better than giants like Facebook (at 17%) and Twitter (at 11%).
In the light of above statistics, developers are constantly improvising on their apps to:
- Offer added ‘value’ to existing users
- Reach new user markets
- Enhance app monetization
Talking about monetization, developers agree that it varies from app to app. Until now, marketers have been using a combination of strategies or creating new ones to boost monetization.
Widely used app monetizing models include:
- In-app advertising
- In-app purchases
- Pay per download
- Freemium, among others
Report suggests that out of these, Freemium model has proved to be successful, across Google Play and Apple App Store. However, the report does not indicate that all apps must be built using Freemium, though.
Let’s take a look at the 5 smart ways to make profitable apps.
1. Boost Engagement
Valuable engagement is of utmost priority, if you want to cash-in your apps. For instance, apps like BBC provide users with the most engaging of user-generated content. The app encourages users to upload content such as stories, videos or pictures to keep them hooked.
2. Go Mobile
Mobile advertising is the next big thing in app monetization. Marketers get access to geo-based consumer insights. This will let advertisers create contextual ads with increased campaign efficiency and decrease ad spillages. For instance, Facebook Messenger.
3. Give Value
Provide focused content to targeted users. Create apps which eliminate the need to hop from one app to other, for the same functionality. For instance, Flipboard, is successful as it acts as an all-inclusive data reservoir for their users.
4. Build Experience
Create apps which can offer an uncompromising user experience. Do not burden the users with unwanted and untimely in app ads. Stay away from in-app purchases if not needed. Focus on building a user-centric design for easier navigation. For instance, Candy Crush Saga, a Freemium-based app offers an interruption-free app experience to make profits.
5. Focus on User
In-app billing offers a huge scope for development. They give app developers a chance to look beyond the traditional ways of advertising to fully monetize their apps. Using one-time billing and automated or recurring billing options, developers can make the most of their apps. They work great if you have a focused audience to cater to. For instance, FIFA 14 by EA Sports app.
According to App Annie Analytics, app developers must keep an eye on emerging market trends, analyze app rankings, address user concerns and create measurable reports to fully monetize their apps.
The best thing about apps is that they can be easily modified to suit business requirements. Every app serves a sole purpose or addresses a single user concern. The latent elasticity in the nature of apps, gives users the very reason to put their creativity to work.
Over to You
Do you have an app monetization strategy?
What have been your hits and misses?
Feel free to share in the space below.