How to monetize a mobile app 

Let us talk about strategies to monetize your app. 

It would be great to develop an app, put it in app stores, and see the money come your way. But the exponential growth of the app market has made the competition more fierce.

As London app developers, we know the importance of exploring and working on new tools to extract revenue from an app. So today, we are sharing 6 mobile app monetization strategies to help your app succeed financially.

1. Paid Downloads

This is the most obvious option. There is nothing as easy as developing an app and then charging a fee for every download. This option gives you stability once you can predict your app revenue. And the better your product is, the more likely you are to obtain large profits. 

However, the vast majority of apps on the main app stores have free versions – less than 15% of apps (App Store and Google Play combined) are fully paid. There is a solid chance that users will prefer downloading a similar app for free over paying for an unknown product. You can turn this around by either offering a unique app on the market or investing heavily in promoting it. 

2. In-App Advertisment 

Using ads to monetize is probably the most used option. It is easy and allows you to keep everything free of charge in your app. Advertisement is the preferred revenue source of almost all web platforms, including mobile apps. It also provides a stable income without asking the user to pay a fee. 

There are plenty of formats for app advertisement. You can integrate a simple ad, such as a banner or a native ad, or make it more dynamic and interactive, with a rewarded video or a playable ad, for example. 

Do not forget, however, that uncontrolled app ad policies can become very intrusive and annoying, harming the UX and driving users away from the app. Do it in good taste, and keep ads to the bare minimum. 

3. Ad-Free Version

You can lure the users in with a paid version that is ad-free. Of course, this means you would have to choose the previous option first and then offer this new version. But if your app manages to add value to several users, this can be a fantastic way to monetize your app since many users will prefer to pay a fee instead of dealing with ads all the time. 

4. Freemium 

Have you ever installed a free app only to find out that there is a paywall separating you from the full version of the app? That is freemium. While the majority of apps are not fully paid, as we mentioned, the truth is that many of them charge a fee to access the app’s full functionality. 

Freemiums draw users in with free basic versions to catch the user’s eye. Users can enter the “hall” of the app, and if they like what they see, they will buy access to the rest of the app. The difficult part might be finding the balance between limited functionality and sufficient attractiveness. 

5. In-App Purchases

This is one of the most lucrative strategies, and it is not hard to understand why. Like with Freemiums, you let the user in and let them explore your product. Chances are they will like what they see and want to explore further – the point at which they will be willing to pay for access to exclusive features.

You can add new features whenever it makes sense to do so, and thus you can get steady revenue from your app. But be sure to invest in an uncomplicated and quick inbuilt payment method. 

6. Data Licensing 

If your project consists of a community app that will be used by many people, consider licensing your data. You can monetize the user’s data, a simple and potentially lucrative strategy. 

But beware of the possible consequences: users are not keen on having their information sold to a third party, no matter how careful you are with security and anonymity.

Conclusion 

Choosing a monetization strategy will depend on the type of app you developed, the specifics of the product or service, the needs and behaviours of your target audience, and the number of active users. For example, data licensing is most successful in community apps, whereas in-app purchases make more sense in gaming apps. 

Opt for the strategy that makes more sense to your mobile application, according to your available resources.