3 App Monetization and Marketing Strategies You Can Implement TODAY
Sometimes a well polished App just isn’t enough. More so – many developers with the mindset, “if I build it they will come” will more than likely do themselves more harm than good. Sure, a remarkably designed app is the foundation of acquiring, hundreds,thousands, and even millions of users..BUT – it doesn’t stop there. Now adays’ people don’t want to pay for apps anymore. Seriously. 76% of App Revenue came from in-app-purchases last year, and that doesn’t look to be declining anytime soon.
So then the question becomes..
How do I create my app to be profitable from the start, without compromising my users experience?
We’re going to talk about 3 ways you can do just that, so read on..
1) Paid Downloads
At the end of the day, it’s all about driving traffic, converting traffic to leads, and getting sales. Luckily, in mobile these first two occurences happen almost instanteously, it’s the last one that is the real stuggle for most developers. Whether you decide to go with any of the MANY different paid ad networks, TapJoy, Chartboost, FreeAppADay, AppGratis, (to name a few)..
Or, something more practical for an indie developer, like..
or
Paid Installs are the fastest way to get users for your app. ..And if your app happens to be a “Premium” app (people pay to download it), then you may find this route to work best for you.
Do keep in mind however that last year only 6 or 8% of app revenue came from Premium app (purchases). It may be good for a “one time” monetization method, however if you really want to “milk the cow” then I highly suggest a WELL DESIGNED freemium app with all the right things.
If you feel like you REALLY want to go with a premium app, that’s fine..they’ve been proven to work well for unique content like: books, productivity tools, and WELL DESIGNED games. But again, make sure to keep in mind, if a user pays for your app – they’re going to have expectations, and if your app does not meet those expecations you can be damn sure they’re going to tell others in their review.
One benefit of having a premium app is that it’s a predictable, guaranteed revenue per user, and also very easy to track.
I.E.
App costs $1.99, I had 10,000 downloads, so my app revenue is $20,000
(not including apple or google’s cut of 30%).
2) In-App Advertising
If you’re ok with a less reliable, potentially more scalable method of monetization, in-app advertising is a good consideration. While naturally having ads in your app impacts your user experience, it is an excellent choice for apps with lots of fresh, new, updates happening more frequently than most.
Note: It’s not advised to update your app more often than needed as when you do it reset’s your ASO ranking (on iOS at least), your reviews, and doesn’t do you any good as far as social proof is concerned.
Your biggest challenge when implementing ads into your app will be: keeping your users engaged. Perhaps, if not ensuring you have engaging content, incentivizing them for coming back to the app. Bake 450’s – Bread Kittens App does a great job with this, although they are a freemium with no ads.
Ad CTR’s (Click-through-rates) generally range from .5%-5 or 6%, so rather than focusing on downloads, you should be concerned with impressions (when a user sees the screen your ad is on). The great thing is, once you’ve nailed creating that ‘type’ of engagement in your app, there’s no limit to the number of times you can monetize any user.
3) In-App Purchases
This is self-explanatory is it not?
I’ll give some examples and get into it a little, but before I do – I should say, the most important thing is the placement of where the “in-app-purchases” are able to take place that seperates the remarkably successful apps, from the apps that.. no one’s ever heard of.
Mobile commerce apps are the most obvious, publications can sell subscriptions, reading apps can sell books, games can sell virtual currency (for upgrades), etc..
The great thing about the IAP route is that unlike ads, they’re tied directly to what the user is doing right-then and there.
I.E.
They could be struggling to complete a challenge in your game, so a power-up or paid upgrade may be perfectly timed and perfectly targeted.
With proper analytics and in-app messaging, you can further increase the rate at which users make in-app purchases by studying overall user behavior and segmenting users to give them what they want, when they’re likely to want it.
Downside.. (and this is kind of obvious)
If your app has no place AT ALL, for in-app-purchases, then it’s likely you’ll be wasting your time trying to monetize in this way, and may be better off going with Ads, or a Premium app.
HOW are YOU Monetizing YOUR App?
Let us know in the comments below..
Kevin is an Online and Mobile Marketing Strategist who has worked with companies of all sizes over the last 6 years. You can follow Kevin on any of the social platforms below.
From a societal point of view, marketing is the link between a society’s material requirements and its economic patterns of response. Marketing satisfies these needs and wants through exchange processes and building long term relationships. It is the process of communicating the value of a product or service through positioning to customers.*..*’
With best regards
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