The number of smartphone users is constantly growing and has reached approximately 7 billion this year. In order to attract more customers and remain competitive, businesses are showing a keen interest in releasing mobile apps for tech-savvy users. It has been reported that 42% of businesses have already developed a mobile app to offer their services, with an additional 30% planning to do so in the near future.
Despite the fact that 90% of all mobile applications are available free of charge, this market is projected to generate over 935 billion U.S. dollars in revenues by 2023. One may wonder, how is this accomplished? There are different ways of making money on the mobile app. The most common strategies are described below.
#1 Download Fee
Many publishers who are new to the mobile app space often consider charging a fee to download their app from the Apple app store or Android app store as the first mobile app monetization option. This approach can generate significant revenue, but it heavily relies on providing valuable content to the end-users. Unless the offered content is exclusive and hard to find elsewhere, users who are well-informed are more inclined to seek out alternative sources rather than paying for it within an app store.
Some publishers opt for this approach. Specifically, apps that provide a distinctive gaming experience or utility on smartphones or tablets benefit from this monetization strategy. However, the percentage of publishers charging for app downloads is relatively low. As of March 2021, 92.9% of apps in the iOS store and 96.7% in the Google Play store were available for free download.
Due to the abundance of free applications, users are more actively using them. Today there is an application for almost any purpose, but this has the opposite effect – memory clutter. This is a small problem because, with the cleaner app, you can clear the memory. There is a special phone cleaner that looks for useless files on the device and deletes them. It is the automatic search that makes the cleanup app such a valuable tool. The app phone also has the ability to manually delete user data. Non-interference with personal data and efficient memory cleaning are what this application is valued for.
#2 In-App purchases
This mobile application monetization strategy is well-suited for games and service-based apps, particularly those that provide the option to purchase additional physical or virtual features. Many users are familiar with buying in-game extras such as additional game time, points, hints, and more. Additionally, some apps offer premium content and subscriptions.
#3 In-app subscriptions
Subscriptions represent a unique type of in-app purchase, wherein users pay a fixed subscription fee on a weekly, monthly, or quarterly basis to maintain access to the benefits, features, and content offered by the subscription. This monetization approach has gained significant popularity among app developers, as it provides predictable revenue streams. Interestingly, subscriptions contribute to a substantial portion (82%!) of the total revenue generated by non-gaming apps on app stores.
#4 In-app advertising
In-app advertising serves as a popular and widely recognized tool for users. This market is rapidly evolving and is projected to reach $240 billion by next year. This monetization model operates by compensating app owners for displaying third-party ads within their applications.
#5 Freemium subscriptions
Under the broader category of subscription apps, the “freemium” model is an effective way of monetizing mobile apps. After users download a free app, they are presented with in-app purchases that provide them with exclusive access to premium features, additional content, or digital goods. Spotify serves as an exemplary illustration of the freemium app subscription model. Originating from Sweden in 2006, Spotify was developed as an alternative to the pay-per-song model of iTunes and the rampant piracy of downloaded music during that period.
#6 Affiliate marketing
Many leading technology companies, such as Google, Apple, and Microsoft, offer affiliate programs that are accessible to app developers.
These programs allow app developers to promote other mobile apps within their own applications. Although the commissions offered in this particular strategy for app monetization tend to be moderate, developers have the flexibility to select the apps they want to promote. This can foster a strong connection between their app and related brands, potentially encouraging users to associate them together.
Conclusion
The top mobile app monetization strategies are now presented. To maximize their benefits, it is crucial to approach app development intentionally. For instance, when utilizing affiliate marketing, taking inspiration from Skin Bliss is recommended. Skin Bliss provides exceptional value through its well-designed user interface and smooth user experience. By seamlessly integrating the monetization method, the app generates revenue while maintaining an optimal user experience. This concept encapsulates the essence of app development.