Table of Content
- 1. What is the monetization of Mobile Apps?
- 2. What is the significance of App monetization?
- 3. Stats for Mobile App monetization in 2022
- 4. Best models and App monetization strategies in 2022
- 5. Top 5 Mobile App monetization platforms in 2022
- 6. In 2022, how should you select your monetization plan?
It's not always easy to turn a new idea into an app, but the largest challenge that app makers face is figuring out how to monetize their work. There's a lot to think about when it comes to in-app adverts, freemium or subscription-based models, or one-time fees—but which method is best for you and your project?
We'll go through the many app monetization possibilities available to you in this article, as well as the conceptual strategy behind obtaining a higher ROI. Whether you're a developer, investor, or product owner, this article can assist you in laying the groundwork for your app's debut.
What is the monetization of Mobile Apps?
The method of producing an income stream from a mobile app's user base by converting engagement and actions into incentives is known as mobile app monetization.
Don't worry if this technical term makes you scratch your head. We'll expand on this concept in the following sections and provide a more comprehensive picture of what, when, and how app monetization works.
What is the significance of App monetization?
App monetization is critical because locating free download and install apps are becoming increasingly common. As a result, the app's business model will need to change.
The business strategy of developers must change once the download is completed in order to generate revenue. You must adapt your mobile app development idea or plan to this situation. It is vital to create one that meets these two objectives:
- More money is coming in from your app.
- Your app is kept up-to-date, and your users are happy.
Many people overlook the second point. Mobile monetization plays just as much of a role in the app experience as it does in the revenue side of things.
Stats for Mobile App monetization in 2022
According to techcrunch ,there were 218 billion app downloads worldwide in 2020, up 55 percent from 140.68 billion in 2016..
From $57.7 billion in 2016, global spending on mobile apps (app monetization) surged by 148% to $143 billion in 2020.
Statista said free mobile app downloads were 96.9% on Google Play and 93.4% on the Apple App Store in July 2021.
Approximately 67% of the total revenue from apps in 2021 was derived from games. About 41% of the total was accounted for by Google Play, which generated $37.3 billion.
Aside from games, iOS accounted for 76% of the $32.1 billion in revenue generated in 2020. In 2020, Google Play generated -$6.7 billion in non-gaming revenue, compared to $24.7 billion for iOS.
Revenues from subscriptions climbed to $13 billion in 2020, with iOS accounting for 79 percent of total revenue.
Read More: App Store Optimization for mobile platforms
Best models and App monetization strategies in 2022
Freemium business model
The freemium model entails providing the app's services for free initially. Following that, you supply various program versions (both free and premium). The app's basic features are free. Users can upgrade to the premium mode to access material with more features and capabilities. Some programmes, for example, have premium editions that remove annoying adverts.
You can make money with premium downloads by simply charging a specified download charge to users. You must, however, set the download price in a range that users are comfortable with. According to a statistics analysis, the average download fee on the Apple Store is $4.37. In 2020, Statistica conducted research utilizing data from the Google App Store. According to the report, most purchased apps cost less than $1, with an average price range of less than $5.
This model can be used to create mobile app ads revenue. Instead of a one-time free app download, you earn money through monthly and annual membership fees. Part of the freemium category, the subscription model, is particularly popular among multimedia apps.
Sponsored adverts are used to generate money in this strategy. The free version of your program helped you attract more users. The more participants you have, the more income you'll earn from your adverts.
This model can take numerous forms, including a premium app feature, a new free user level/reward, one free meal, and an additional workout in the healthcare mobile app. This monetization method applies to free and paid apps and physical and virtual products.
A form of indirect monetization technique in which money is generated from products and services rather than direct app activity. When users download a piece of software, he or she can then use the iOS or Android app for free. One such deal can be found on QuickBooks (a popular online accounting software). If your product includes a free app and others don't, you'll have a huge competitive advantage. The user also prefers native mobile apps, since they can access data anywhere.
Top 5 Mobile App monetization platforms in 2022
Platforms for App Monetization at the top, Mobile app developers may leverage monetization technologies to make cash easily and quickly from high-quality adverts. And if you're still undecided, here's a rundown of the top five platforms.
1.AdMob by Google
One of the most well-known mobile app networks is Google AdMob. Advertising companies utilize native apps to reach millions of users. A portion of your app needs to be devoted to advertising. Advertisers then compete for your ad slots by placing bids. Your technology picks the most profitable and engaging advertisements for your users based on factors such as profitability and engagement
Another popular ad network is MoPub. It manages adverts using an auction-style payment system. As part of its inventory targeting solutions, MoPub has released Inventory Packages. A type of ad inventory, Inventory Packages allow brands to segment their inventory and reach the right audiences.
In the world of mobile development, Chartboost stands out as one of the most famous networks that specialize in cross-advertising. This app monetization platform allows game developers to sell ad space to other developers and launch cross-platform mobile app advertisements.
4. Unity Ads
This is a very popular mobile advertising network. Here you can purchase certain unusual ad types, such as playable creatives. Playable advertising is interactive commercials that include gameplay elements. There will be video and a miniature version of the game available to spectators. A bottom-of-the-page call to action (CTA) urges people to download the app.
5. Facebook Audience Network
Introducing Facebook Audience Network, a network that allows advertisers to reach consumers who use apps other than Facebook and Instagram on their mobile devices.
There are options for native position, banner placement, insert placement, video placement, and bonus video placement. When users click on Facebook ads in their apps, publishers receive a portion of the money.
In 2022, how should you select your monetization plan?
When choosing the correct monetization approach for your product, it's critical to pay attention. Before deciding on a model, consider your KPIs such as audience, engagements, capabilities, and the kind of apps and services you offer. I've collected a list of tried-and-true strategies for you to consider:
- Identify the most critical aspects of the market through thorough market research.
- Early on in creating your software, test and verify your chosen monetization method.
- Make sure you're not overcharging your customers.
- Define the app's specialized elements.
- Give your users something of worth.
- Keep up with the latest trends by constantly updating the apps.
- Make sure your technique doesn't negatively affect the user experience
Some apps are more accessible to identify than others. For an eCommerce app, for example, in-app purchases are the best option. Suppose you try to apply the Advertisement model to an eCommerce mobile app. In that case, however, it will divert user focus away from the goods you're selling, lowering the app's value.
Applications can be monetized using a variety of well-known platforms and technologies. Creating a successful monetization procedure for an app can be challenging for a newcomer, and you should focus on using effective methods and approaches.
Suppose you need assistance. Groovy Web is the top hybrid mobile app development agency for determining the appropriate monetization model and developing a market-competitive app.