How to monetise your app.
Reports have shown that 16% of Android developers earn roughly £4,000 per month through their apps, while 25% of Apple developers earn the same. However, this is subject to the type of app it may be, as well as how well it ranks – for example, apps on the 200 most downloaded list can reportedly garner £70,000 daily.
While this may represent a few polarised success stories, that doesn’t mean that you’re exempt from gaining revenue either – however, ensure your target is realistic as it is unlikely that you’ll earn £70,000 overnight.
In many instances, developers often express their anxiety over charging people to pay for an app out of fear they won’t buy it.
However, that’s not the only way to earn profit.
In-app purchases are not limited to the cost of the app itself, but also extend to other options. For example:
· Freemium apps
A subscription may be something as simple as a recurring payment for the removal of advertisements, while a freemium app offers users some areas of the platform for free but hides other exclusive perks locked behind a paywall.
Advertisements and sponsorships
Another popular way to monetise your app is to link up with other businesses and brands.
In recent years, advertisements have been displayed across all formats of media, and apps are no exception to this. An important thing to consider is whether the advertisement is appropriate for the app, for example, if your target audience are teenagers then ensure the ad wouldn’t be aimed at children, and vice versa.
As of 2017, advertising through apps became a $107 billion global business, so it’s worth exploring.
To utilise advertisements to its best ability, it’s good practice to see how you can display the apps as each ad placement will come with a different price.
For example, in-app video ads that offer the watcher a reward at the end of the video are most effective, and therefore, should be charged proportionately compared to banner or native ads.
However, be sure not to dismiss the latter as successful native ads can receive 53% more views than traditionally displayed ads.
Whether it’s email marketing or affiliate programmes, compared to in-app advertising or sponsorships, it’s easy to overlook the potential of this monetisation avenue.
However, reaching out to your user, through data they’ve already supplied, is a great way to establish a relationship with them, and remind them of any offers or sales they may not have been aware of.
Below are three examples of simple ways to encourage in-app spending:
· Email marketing
· SMS options
· Push notifications
Depending on budget options available, you may have cost spare to spend on influencer marketing. This is especially popular if your app is targeting a younger audience, and has been a popular trend on apps such as TikTok and Instagram.
Of course, all these techniques will be most useful when used in conjunction with one another. So, don’t be afraid to combine a few of these tactics, just ensure you analyse any upturn or downturn trends.
By revising and updating your techniques, you’ll understand the routines and reasons behind why users spend their money – therefore, you will be able to plan ways to encourage this behaviour.
But remember, its paramount that the user’s experience comes first. The last thing you want is for their experience to be tainted by an inundation of monetising ploys.
7. Lean Plum