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Mobile App Monetization Methods

Discussion in 'Mobile Marketing' started by keenmobi, May 19, 2017.

  1. keenmobi

    keenmobi BANNED BANNED Jr. VIP

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    The developers’ eternal question: “How To Make Money With Your Application”. There is no unequivocal answer to it. The scheme of monetization of mobile applications is changing along with the rapid growth of the mobile market. Before thinking about monetization, the developer must understand what kind of income generation is best suited to his application.


    Most developers prefer to earn on FREEMIUM-MODELS of their applications. Revenue from freemium applications is now growing by 211% and advertising revenue inside applications is up 56%. A free application advertises the user the idea of how it will be good with a paid version. The user downloads a free demo version of the game, uses the application until the time with artificially created limitations, such as the number of levels in the game, etc., and the developer suggests removing these restrictions, i.e. to buy the user a premium version. In-app purchases work by allowing the user to buy additional features or bonuses. Success stories on the Freemium model have built such game sharks as Angry Birds, Cut the Rope, Angry Birds Space HD, Fruit Ninja, users of each of them download more than 1 billion Times, and the games themselves get the title of the most sold in the AppStore.

    Today it's not enough just to put the price for applications and wait for the audience to start making money. Therefore, publishers have to encourage users to pay for the application while using. Such methods of monetization include:

    ADVERTISING INSIDE THE APPLICATION (one of the most popular of these). It works by advertising on a dedicated space in the interface, which makes a profit in the calculation for the number of views and conversions. This method works effectively in games, news and entertainment applications, instant messengers. Best suited applications with daily visits.

    Some developers or companies use THE SPONSORSHIP. Its essence is to release the application on behalf of another publisher in exchange for popularity and recognition. This method works well in applications that are tied to a specific geographic location or event. Typically, such a monetization strategy does not allow you to receive a sustained or increasing income, and for the first application may be the only chance.

    Another way is push notifications. This type of advertising has high conversion rates and CTR, because there are no random clicks on the ad that is in the device tray. However, this type of notification may not be suitable for iOS.

    Advertising in pop-up windows: When using this method, advertisements are displayed as a dialog box inside the application, presenting the user with a small call to action and the OK and Cancel buttons. For example, it can ask the user to "Download a new free game", after which the corresponding buttons will be presented. Here the payment is made according to the CPC model.

    VIDEO PLACEMENT. Quality video based on the CPM model is shown right inside the application. Usually, the server shows such ads only to those users who use wi-fi, which makes it possible to make sure that the user can view the video without stopping from start to finish.

    More than 25% of downloaded games are paid. They offer for a certain cost of improving the comfort and quality of services, additional bonuses and functions. Here, the user initially pays the application when downloading. This method of monetization is very imposing and negatively perceived by users. That's why it is suitable only for very high-quality games.

    To summarize, it should be said that the process of monetization is influenced by many factors:

    · the quality of the functional component of the application;

    · visual support (design),

    · the right choice of the target audience, analysis of market needs and much more.

    As already mentioned in previous articles, the possibilities are endless. It should be understood that the monetization of the application is one of the main components of the business plan for the future project, and even the most successful project can not bring anything if you do not have enough time and effort to debug the mechanism for making a profit.