What are the best ways to monetize an app?

Marketing 3876 05 comments

In this article, we will discuss: What are the best ways to monetize an app? Building an app is not the only thing you should care about; how to market it and make money from it, also important. That can’t be ignored. If you are not able to monetize your app properly, then all your hard work has gone in vain. Developers are looking for the best monetization methods to monetize their apps without disturbing the user experience.


Best App Monetization Strategies in 2024

There are many ways in which you can monetize your app in 2024. In this article, we will discuss a few of them.

1. In-app advertising
   You can see in-app advertising in almost all types of apps. These types of ads include banner ads, interstitial ads, video ads, native ads, and text ads.
   
   It is one of the most popular ad formats among app developers and organizations. Almost 1/3 of revenue generated from apps is through this method. It is estimated that in-app advertising alone can generate $225 billion in 2025. With this data, you can estimate that this is one of the best methods of in-app advertising.
   
   
2. Interstitial Ads
   
   Normally, you can see this type of ad format in all the apps. The ad displays cover the whole display screen of the mobile. This type of ad comes in between signing up or leveling up a particular level of a game or an app. Honestly speaking, this is one of the worst methods of app monetization because it hampers the user experience. 
3. Native advertising
   
   It is one of the best ways to monetize your app and generate revenue from it. In this method, ads are specifically designed for the user so that they see ads in their feed section. So, in this case, the user experience was not hampered. Like- Facebook, Instagram, LinkedIn, etc, use this type of advertising to generate revenue from them. 
   
   
4. Freemium Model
   
   Nowadays, people prefer the freemium model of advertising to monetize their apps. In this method, they used to keep some of the features free, and the rest of them were paid. A few examples of this type of advertising are In-app purchases, ad-free content, using paid features, etc
   
   Benefits of the Freemium Model
   i) You can try their product, or, I mean, their app, before purchasing it. 
   ii) You can reach out to a mass audience without relying on heavy marketing.  And it is one of the best ways to scale your marketing efforts.
   
   
5.  Premium Subscriptions
   Premium subscriptions mean that the app you are using is paid for. They run on a subscription model and require users to first pay the subscription; after that, they can use that app. It has been shown that paid apps have higher engagement rates compared to free apps. One more important point that I missed in this article is that if you have an app and are looking to promote it or want to increase app installs, then CPIDroid is one of the best mobile marketing agencies you can go with.
   
   Benefits of Paid Subscriptions 
    i) Steady Income: Paid apps have one benefit: they provide steady incomes for developers each month.
     ii) Long-term users: Users of paid apps have used the apps for longer compared to free apps. 
   
   
6.  In-App purchases,
   It is one of the best methods to monetize your app. Nowadays, it is quite popular in gaming apps. In this method, people use their money to purchase some of the features of the app while using/playing the game. You might be thinking, How can we set up in-app purchases in our app, either for Android or iOS? It is very simple, you just have to integrate the payment gateway into your app  (like- Razorpay, Paypal, UPI, etc.). When users pay the amount, they will be able to use the premium features.
   
   Types of in-app purchases:
   
     i) Consumable    
      The name says it all, consumable purchases are one-time purchases that can be used at once. The items include game currency, bonuses, power-ups, etc.
   
      ii) Non-Consumable
      This has permanent access for the users. The items include: unlocking hidden levels, bonuses, and cosmetic items.
      
      iii) Auto-Renewing Subscriptions
      Auto-renewing subscriptions are considered one of the best methods of monetizing an app. In this method, users have to pay some amount every month to avail of the services. Some of the famous     examples of auto-renewing subscriptions are streaming apps (Netflix, Amazon Prime, etc.).
   
   
7.  Affiliate marketing offers
   
   Nowadays, many big companies, like- Google, Apple, and Microsoft, have open affiliate programs for developers. 
   In this affiliate program, developers have the option to promote other apps within their own app. The commission they get is not much higher compared to other monetization methods. The only thing that developers have is the ability to pick up the app they want to promote.
   
   
8. SMS Marketing
   Yes, you heard it right, SMS marketing can also help you generate some extra bucks for your app. If you use it correctly, like- sending offer or discount messages with coupon codes, etc.
   
   
9.  Sponsorship Ads
   This does not apply to all the apps. This method applies to those who have a huge audience base and engagement in their app. In this process, developers find the company that will sponsor their app, and in exchange, they get access to advertising in their app.
   
   
10.  Crowdfunding
    Crowdfunding is also considered one of the best models to monetize an app. In this method, developers reach out to a mass audience and ask for some funding to support their cause. It seems that most of the developers used this type of method in their early stages of app development. They lack funds to develop and market their app. Some of the famous crowdfunding platforms, are: Kickstarter, IndieGoGo, GoFundMe, Patreon, etc., can help you reach out to a larger audience and gather funds for your cause.
    
    

 

Conclusion

In this article, we discuss the best ways to monetize an app. Starting from in-app marketing to native advertising, the freemium model, or even crowdfunding methods. It’s up to you, how you can monetize your app. But let me tell you that, the freemium model is one of the best ways to monetize your app. You can start with that, and after that, you can analyze the other methods of advertising. 

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