How to Monetize Mobile Apps in 2020
Since the launch of mobile devices, the app market has been reaching out to a wider range of audiences than anyone could have predicted. As per the Statista report, there are 2.57 million apps available in the Google Play Store and you will find 1.84 million apps for iOS. Even, app publishers are expected to earn $189 billion in 2020.
But have you ever wondered how these free apps help you generate money or revenue? I am sure many of you might be having this question, as we are downloading any apps from the stores without any cost, then how can the app developers make money out of it? Well, that’s why we have come here to make you understand by clearing your doubts.
This insightful article will surely help entrepreneurs who wish to start their journey by developing mobile apps and make money by publishing free apps in the app stores. Here, you download the app from the app store, then in return, app developers who offer free apps expect payment or profit as well. So, if you are planning to develop an app and are not aware of the tactics to generate revenue, the following article will clear your mind.
App Monetization Strategies
There are 90% of the millions of free apps available in the Google Play Store or the iOS App Store to download and use. That’s why with the free apps, the app developers generate the $1.73 billion revenue. In 2015, the global app revenues reached $70 billion whereas, by 2020, it is expected to reach $190 billion.
As per the Statista data, in 2019, the most effective monetization method was the use of rewarded video ads. This has opened the door of opportunity for both the app developers and customers, as, after the completion of advertisement, users receive points and app bonuses.
Well, this is the data that you should look upon to gain interest in developing mobile apps. Now, let us take you to strategies that might help you make money.
1) In-App Advertising
a) Banner Ads
The banner ads are displayed at the top or bottom of an app. It’s an effective way to display your ad as it covers the screen and destructs you from what you are doing at the moment. However, it covers a very small amount of your display so the users can freely interact with the top and stay on the existing apps.
Apart from that, as per the user’s demographics and past behavior, app developers can target them to display the ads. Still, they have a very low engagement rate which is 0.1% CTR (Click-through Rate) only.
By far, the Flappy Bird app got succeed by utilizing this tactic and generated $50K revenue per day.
b) Video Ads
In this video ad, the customer gets a reward once he/she watches the video until the end. An average CPM rate for mobile video ads ranges from $0.05 to $5.00.
For example, the user can get extra game-currency or life after watching the full video.
c) Native Ads
The native ads are seamlessly integrated into the app. The added elements can be sponsored content or video that is aimed to promote a particular brand or product. This covers the same part of the mobile screen which looks like another post in the timeline.
This is the reason, users find this ad more interesting and less annoying. Hence, they have become more popular among users and generated great revenue.
For example, With the New York Times’ T Brand Studio association, Airbnb company had created a campaign for Ellis Island. This caught everyone’s attention and played the most important role in app history.
d) Interstitial Ads
Interstitial ads are displayed on the full-screen of mobile devices. This is a pop-ad and displayed within an app for a specific time. This ad is in the form of display or video and asks users to watch the ad for some time. After some time, they can skip the ad and resume to the existing app. During this time, users can get two options — either close the ad or check out the promoted content.
e) Reward Ads
I guess everyone likes to be rewarded. So why not by watching the video? Reward ads are widely popular in Game apps. The users are offered a reward to engage with content. Many of the users will surely watch your video and get the benefits if you are implementing this tactic. This can increase app loyalty and generate revenue.
For example, if you watch a 30-second advert, you may get a reward of extra life in the game.
2) In-App Purchases
As per Forbes, In-app purchases have generated the highest revenue within the app industry. In fact, to be precise, 47% of the total revenue is generated from in-app purchases. So, if you are planning to create a free app, then including the in-app marketplace is one of the best ways to generate revenue. This is completely managed by the app store and app owners get a commission from every trade.
For example, The Clash of Clans game earned $1m per day on purchase and Pokemon Go users bought in-app purchases for $1.5m daily.
3) Affiliate Programs
Google, Microsoft, and Apple are providing affiliate programs to app developers.
With affiliate programs, you will be able to choose promotions from a wide range of apps. Find the latest or hottest apps from the app store and promote them in your app to earn easy commissions. You can also check for other businesses that have affiliate programs. You can earn more commissions from the businesses that offer paid memberships.
Integrating this sponsorship model with a huge user app, you can gain many benefits with a specific market niche. Hence, you have to get in touch with those persons who belong to the same industry. You can put their sponsorship ads with your brand and information in the app.
It consists of two ways:
- Share the equal profit that is generated from the app.
- Make a payment for a monthly sponsorship fee.
For example, these ads have been utilized by the Weather Channel app in many ways. There’s an animated background for Home Depot in the app. Also, you will find a retailer in the field of construction and household goods.
This is an interesting way to monetize apps for free. With this crowdfunding model, start-ups and large companies raise funds for development and marketing needs by exchanging and sharing their ideas. Platforms such as Kickstart, IndieGogo, GoFoundMe, Patreon, Fundable, and AppsFunder can help you monetize your mobile app for this model.
6) Email Marketing
Another way to monetize your app is by implementing email marketing. It’s one of the oldest but effective methods to hit the customers or subscribers’ interest in a product or service by collecting user data — emails and sending them emails regarding their interest. It’s one of the useful strategies when you ask for a user email during sign-in.
Since most of the people check their emails on a daily basis, this ensures that users will surely read out your email or the information that you have provided in the email and will engage with the content. Therefore, you must add a creative and most engaging subject line. You should include the question or some funny and relevant statement regarding the product or service.
There are three ways to collect the email addresses of users.
- Ask to enter the email address with a pop-up message by offering some reward in return.
- Collect email id from Facebook SDK after signing up from the user.
- Third-party tools to fetch emails.
For example, the biggies like The New Yorker, The New York Times, and The Washington Post engage with their customers by delivering the content they want. Once you become a paid member, then only you can receive the other information.
So, How Much Money Do Free Apps Make?
So, if you are good at coding and have detailed industry knowledge then there are high chances to become rich. If you want your app to be listed on the top list of an app store then you should know how to develop an app and what types of strategies should be implemented to monetize from a free app. If you follow the above techniques and implement them in your given app, then you can easily monetize from a free app and can see yourself in the top list.
Till here, by far so now, we have covered major six tactics that you could implement to monetize your app. Since every coin has two sides, there are peaks and drawbacks too for every strategy you implement. So, as you can see, there are a lot of major factors behind gaining a profit with a free app. Just because it's free, that doesn’t mean you can not gain a profit and monetize an app.
In fact, offering a free app might help you increase a bank balance than offering it for a solid price. So, remember, if you want to hit the marketplace with the right income, a powerful marketing campaign is required. Without one, the app will not hit the users nor will it generate profit for you.
About the Author:
Jigar Shah is the Content Creator at the renowned Web and Mobile App Development Company. He is an avid reader and tech enthusiast. He’s capable enough to change your world with his words. A cup of tea and a good book make an ideal weekend for him.https://twitter.com/TheOne_Tech
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