I am happy to welcome Waqas Pitafi, Entrepreneur, Founder and CEO at DevBatch, Senior InfoSec Consultant (MS, University of Liverpool) as our guest writer.
The most common reason to creating an app is when you want to develop customer loyalty, create awareness about your company, or attract new customers. Mobile apps work as a marketing channel for promoting your brand when it’s launched. Therefore, we expect mobile app advertisements to be an important source of generating revenue. Following are some of the benefits that make mobile app advertisements necessary:
- You can carry out targeted marketing
- It offers accessibility on large basis
- The size of medium is massive
- Costs fraction of what other advertisements methods take
- Generates high response rates
- It makes tracking simple for app owners
People get attracted towards mobile app development when they see similar ideas generating billions of dollars in the market. Apps such as Instagram and WhatsApp are based on ordinary ideas, but with exceptional methods, that make them unique and successful. Developing apps is a complete business that only runs when we have the money coming in. Following are some important points that can help you with generating more ROI through your mobile apps.
Mobile App Monetization
App development is a business that requires you to earn money in order to keep the ball rolling. One technique that every successful app owner uses these days is: monetization. For app owners, monetization is becoming very attractive these days for deploying their mobile apps in the market. Making yourself clear about monetization is necessary as, it will help you to prove your customers that you are passionate about providing solutions to their problems.
According to a statistic, about 2% of mobile app developers are getting more than 50% of all the app revenues. So if you want to become one of these 2 percent’s, you will have to prepare an excellent plan in order to generate profit out of your app. One report says, the revenue that we generate from in-app purchasing is entitled to about 71% on free apps, while, only 5% on paid mobile apps. As for monetization, there are four major models included in it:
1) Freemium (with gated features)
This one here is the most revenue generating model of all, and is used mostly for game apps. A freemium app is offered free to download for users, but with limited features and visuals. If the user wants to access all the features, he/she can buy the premium version. This model is helpful for you as an owner because, it allows the users to at-least download the app and give a try in order to test the value of app.
The principle is to offer a free version of your app to users and let them buy additional features or content on a certain price or subscription.
2) Paid Apps (One-time payment)
With this model, users will have to pay one-time only for downloading the app and enjoying all the features. However, keep in mind that if you are going to launch your paid app, it should be well attractive for users before they pay for it, without any sample. Keep in mind that with this model, there is no repetition in revenue through your existing users. If you want to generate continuous revenue, you will have to look for new users every time.
3) Paid Apps (with paid features)
This model has just recently gained attention, but also has a share in criticism. Many users find it unfair to pay for what they are already downloading by paying. Keep in mind that, with this model, you may have to think cleverly with providing such value to users that result in extra purchase from your app. Because, whatever we say, this model is working and generating good revenue as well for the app owners.
4) Free Apps (In-app advertisement)
This is a very popular monetization technique that many apps are using these days. You can advertise your app on other free apps that people are downloading a lot from the stores. However, keep in mind that you will only make good money when large number of users will download and use the app on regular basis. Thus, this model should only be used when your app gets to be used on frequent basis.
What are some of the best advertisement networks for monetization?
With offering number of models for monetization that result in maximizing your revenue, advertising networks are rising more than ever before. Here is a list of some popular advertising networks to go with:
- Millennial Media
These advertising networks can be of great help to mobile app owners in many ways including:
- Maximizing profits by enabling, extensive reporting and low ad serving costs
- Increases geographical reach in a short time period
- Gives a high selling rate through repeated business
- Provides more opportunities to market products and services
In the end
Although there are plenty of methods that can be used to monetize your apps, the best way to generate profitable revenue is by repeated business with existing clients. You should never repeat what others did with their apps before. Work on every monetization model to find the best one that suits your app. I hope this post helps all mobile app owners to generate maximum profit out of their apps.