App's Monetization Strategy
Every content owner or publisher certainly wants to make profit from the app as soon as possible. For this reason, choosing the right monetization path is crucial. With so many available strategies, choosing the right one will hardly be a problem. On the other hand, you need to consider some specific factors and parameters of your particular product as well as its specialization to determine the most efficient monetizing tools.
The choice of the right strategy will depend on various factors. They include:
- The type of the platform;
- Distribution channels;
- Type of the application;
- Cross-platform availability.
Those are only some of the factors you need to take into account. Do not forget to revise all your app hits and misses to take the fullest from a chosen path. This article will show you some essential moments that will let you monetize your application with maximum profit.
Define All Possible Channels of Distribution
The first thing you need to do is to choose the best distribution channel. It is actually the same as choosing a mobile platform for your application. We have two major marketplaces. They include:
App Store – its role is often overestimated. Nevertheless, the marketplace features 93% of all mobile apps downloaded by users through the app store. However, App Store covers less audience if compared with Google Play;
Google Play – the marketplace can certainly beat its main rival by size. On the other hand, the revenues here are quite smaller.
In spite of those differences, Android platform keeps winning the market and introducing endless lines of its award-winning devices. This fact gives developers more opportunities to express their creativity and ideas when developing a new product. On the other hand, iOS applications have proved to make more money for publishers. The choice is going be tough. Moreover, we should not forget about some other channels and popular brands including Microsoft, Blackberry and Amazon.
The platform is certainly a good option for monetizing in case you are 100% sure your application is a great success. Developers and publishers are guaranteed to get a $10,000 revenue in case they deliver apps that worth at least $1,000. You will also appreciate 80% revenue cut from your every sale in addition to billing opportunities delivered by PayPal and other great benefits.
Some experts say that Amazon app store can generate the same revenue as its competitor in the face of App Store. Although the marketplace is much smaller if compared with Apple’s digital; facilities, developers can still count on high profits here. Some publishers will certainly appreciate the Free App of The Day option to promote their products within the marketplace.
Windows Phone has also grown into a leading mobile platform with plenty of devices across the world. Moreover, Microsoft has introduced its own Windows Phone Store although you will have to pay a $99 fee to get an access to it and complete the registration. On the other hand, the store boasts hundreds of free applications. Moreover, developers do not have to pay a cent for submitting their paid products. Apart from some major marketplaces and distribution channels, content owners and publishers can look for some other sources of income. Yu may consider some of the following platforms as well:
- GetJar and more.
All of them can boast some advantages. Most of them have crucial disadvantages if compared with the mainstream app stores. However, you can still find them handy when choosing the right monetization path. The only problem with those app stores is related to the lack of digital security and guarantees. There is always a huge risk of making the wrong choice. You should better be careful and check all possible issues of a chosen channel.
Traditional Monetization Strategies
You can build the most unique and original mobile application. However, the things are typical when it comes to monetizing it. As a rule, the majority of developers choose from a set of classical monetization strategies. We have conducted a list of most popular tools that have already proved to be efficient enough when it comes to generating revenues from a mobile application.
- Freemium – free applications have the major share on the mobile market. They represent up to 8% of all available products at all leading app stores. The strategy is very simple. You build a free application and deliver it to your end users providing some basic functionality. Then you offer some advanced features as an in-app purchase. That’s it! This particular tool has proved to be the most profitable.
- Paid downloads – a few developers opt for this strategy today. Nevertheless, it can still be a great success. You get your revenue for every download performed by users. The strategy comes with high risks of losing money because of high competition and numerous pirate versions of successful products.
- Subscriptions – if you decide to use this strategy, you need to take a good care of your product as well as your users providing them some useful content. You can choose from weekly or monthly subscription fees. They will depend on how often you are going to update your content.
- Advertising – this strategy has always been very popular with developers who prefer building free applications. The idea is very simple. You get your money from in-app ads providing advertising space for marketers right inside of your app. Some may call this approach a bit out-of-date. For others, this is the only chance to make some money. Developers can choose from text ads, banners, stickers and other types of digital mobile advertising. Moreover, we should never forget about CPA models and networks that have always been rather efficient and beneficiary from business perspectives.
- Premium monetization models – this monetization strategy is a good idea only in case you have built something really amazing and unique. Forget about Android market in case you decide to implement paid apps issues, as customers there are very unlikely to buy any staff even if it is something breathtaking.
As you can see, there are some great solutions whenever you need to choose an efficient monetization strategy. It does not really matter what path you will choose. The key to success has always been in a great product that can really turn out to be useful for the end user.