Running an application in today’s digital economy is a costly venture, and it is integral to invest into your application if you want to offer a great user experience. Unless your business can support the hefty funding that is required to design and maintain an application, it is advisable to look at ways to monetize the application. Choosing the most effective strategy to generate a steady flow of revenue is imperative to keeping an application afloat when there is cut throat competition from the various free alternatives available in the app stores.
As technology is constantly evolving and revolutionising, it's become a persistent point for business owners to find ways to monetise their applications to provide profitable outcomes. Similarly, industries need to find a way to generate revenue from applications and a number of factors, ranging from the platform chosen to the monetization model, go into ascertaining the apt way to do this. Let’s look at some of the ways that you can use while create strategies to make your app truly lucrative:
The chosen platform
Whether you’re choosing to build your application for Android or for iOS (or maybe perhaps both), the platform that you've singled on has a massive impact on the revenue an application can generate. It is important to thoroughly study many particulars such as the demographic, user’s earning capacities and the overall favour of the platform in the region. For example, certain countries like the USA and Japan are avid Apple users and it would be advantageous to concentrate more on iOS applications for that region. While the concentration of Android users is largeron a global scale, studies have shown that Apple users are likely to pay upto 2.5 times more on applications. This goes to show that while you may acquire more paying users through iOS applications, you will get significantly more downloads and market coverage through Android applications, and perhaps the best of both worlds with a balanced tradeoff.
Offering apps on Freemium
Freemium is a popular monetization model being used to launch mobile applications over the recent years. The word Freemium is essentially an amalgamation of ‘Free’ and ‘Premium’ which denotes that some premium apps are available for free download but the functionality of such applications is highly restricted with users being required to pay a certain fee to access the advanced features. This hybrid marketing model is highly recommended as it guarantees extra coverage and more downloads hence having a direct impact on the position of the application in app stores. In this model, some of the base features are offered for free so that buyers can take a look at the various features and functionalities of the app before making an informed decision to shell out more money.
Consider choosing PPD as a marketing approach
Pay Per Download, commonly abbreviated as PPD, has been one of the most classic approaches used to make applications more profitable. In this pricing model, the user is required to pay a certain amount right when downloading the app. This ensures a stream of revenue for the providers through the application as there is income generated for each download with a small commission being allocated to the store. While this method is a fool-proof way of monetizing your application, it is crucial to understand the application and its niche in the market before opting for this approach. The popularity of using PPD to monetize applications has slowly been dwindling as the abundance of applications in the market mostly always guarantees that there is an alternative available for free.
Digital Ads and in-app purchases
The method of displaying advertisements on the application to promote in-app purchases is another favoured method widely being used by app development companies to drive conversions. One of most important factors to be considered when going forward with this approach is the placement of the advertisement; it is absolutely integral to ensure that the ad is positioned in a way that garners attention from the user. You can design and launch advertisements which target the installation of the app, i.e. performance marketing, or choose an approach which is more focused on the brand. In-app purchases are especially popular in the gaming industry with the provision to buy coins or other weapons and utilities using actual cash to improve your performance within the game. Another important element to consider when opting for in-app purchases as a revenue generation method is to ensure that there is an equilibrium between the features being offered for free and those that are paid.
Sponsorships through productive partnerships
Another prime way to boost the profitability of your applications is by using sponsorship as a way to drive sales. Pitch your application to potential partners who might be interested in the services and app audience and become your brand sponsors for equal profitability on both sides. Such partners may choose to design apps which may use advertisements or go through an ad-free approach. If opting for the latter, rewards are offered to customers for completing certain actions within the app hence providing their brand with more visibility. Similarly, advertisements that are paid for by the sponsored partner can also be displayed on the application.
To sum it up…
While it is not possible to declare that one monetization method is the best, it is important to understand the product to single out the optimum option that works for you. Developers can either choose the best aspects from many techniques or experiment with various strategies to pick out the best way to generate revenue through the application. As monetization is the most important part of any business venture, it is essential to allocate a significant amount of time and effort to study various monetization strategies to guarantee a successful app that is also lucrative.