The app creation business continues to see significant growth with app revenue expected to reach in the region of $75 billion by 2017. If you wish to join the long list of aspiring entrepreneurs and release an app to the global audience, it is essential to know how to monetize it. This is one of the first steps to fully research and understand before being able to build a successful app business. While most of the apps created are based on fun or useful ideas, it is still possible to use a monetizing strategy that can work with most apps that regularly used and downloaded.
Here are three popular app monetization strategies:
The most basic way to monetize the app is by charging a set fee to download from the app store. This gives the upfront payment and money is paid as soon as the customer gets their app. But, this isn’t a successful strategy for everyone, and only seems to work in certain conditions. Plus, this monetization method is starting to see a drastic decline in use with alternative options more in favor like in-app advertising or sponsorship. Any app that uses the paid download option needs to show it has the ability to offer value, and word of mouth and good app store reviews can help. This strategy rarely works when there are cheaper or free alternatives of a very close comparison.
For the app that has the user spending a lot of time interacting, listening, or watching the on-screen activity, the option to include advertisements might be a good idea. The in-app advertising is usually based on companies paying a certain amount per click or impression. There are plenty of ad networks that make it really easy to integrate the advertising in the actual app. But, there is the concern that the app can interrupt or seem intrusive for the user. It is important to be careful with these types of ads to avoid pushing away the audience, while also trying to maintain an acceptable income.
A paid sponsor is completely different to using the ad networks. This sponsorship method is where another person or company has a certain ownership percentage to back the production or marketing of the product. The sponsor is able to benefit from this arrangement by having their brand or details inserted into certain parts of the app. This is a type of monitoring strategy that is seeing growth but it does rely on the app creator having the business skills to market their product to outside investors.