"How to earn money" or 5 mobile app monetization strategies

So you created the application ... and what's next? How to get paid for your work? How to make your product paid?
The answer is obvious: you need to choose a monetization strategy. But it is easy to say "must choose"! And what are they anyway? What are their pros and cons? Which one is better?

We will try to give answers to these questions in this article.

Mobile application monetization

Strategy №1 - Advertising

A well-known way is to stuff more advertising into the application and get paid for it. Let's be frank - the method is rather additional than the main one: you will not earn much on it. But nevertheless, as an additional way to make money, the strategy is quite good. Let us consider in more detail what kind of advertising is in applications. Usually it is of two types.

1. Banner. Those. from time to time you literally poke a visitor in the nose with an advertising picture. Typically, these images are neatly inserted into the lower or upper part of the screen, but exceptions happen - it all depends on the imagination and greed of the developers. For example, many applications use such advertising as an intermediate screen.

This kind of advertising should be used if your application is a mobile game. If you give out such advertising in the beginning it can bear fruit.

You can embed a banner into your application using services from Google and Apple.

2. Native advertising. Let us remind ourselves that advertising is called “native”, which is well integrated into the context of the situation and is not highlighted by a bright spot against the background of the application.

It is recommended to use if your application is not a one-time application. No, we have nothing against one-time applications, but if you need your product to cut the ringtone once or twice, it makes little sense to think about less intrusive ways to embed advertisements.

If you want to embed this type of advertising in the application - send a request to the advertising network. They will send materials and data sets that you will need to work with the designers of the application. Here is a list of the largest networks - target.my.com; avocarrot.com; applovin.com; www.inmobi.com; pubnative.net. More you can find with the help of search engines.

An example of native advertising

A few words about in-game advertising.

2016 brought a lot of interesting ideas to increase the profitability of advertising. Video advertising is gaining in popularity, methods of filling the game’s natural pauses (whether it’s loading a new level or the end of a game session) are flourishing; billboards in your own gaming application world. Use billboards to advertise is brilliant, isn't it?)

Strategy number 2 - the classic. Paid version of the application

This strategy should be used in cases where your product is a service application, often used for specific purposes.

The essence is simple, like 5 kopecks - the user gets a full-fledged program, having bought it once. However, there is a difficulty - the user must be convinced to buy the application! And it is very difficult when he does not know what is being said.

Strategy number 3 - Freemium

In fact - a demo version. The best fit for gaming and entertainment applications.

Everything is implemented simply - you make your application two versions. One is limited, with truncated functionality; the other one is full-fledged, maybe with some bonuses. Provide the first for free, the second charge. Profit.

The advantages of Freemium are obvious - a free application will lure the audience easier, and allow you to learn a little about the product. After studying, it is usually easier to incline the user to purchase (if the product is of high quality, of course).

On the other hand, there are also disadvantages - you need to attract a large audience, because each user pays only 1 time. In addition, the application should be carefully analyzed on the balance of functionality. If the free version handles all the user's tasks, why spend money on a paid one?

Strategy # 4: Free-to-play

It is also called f2p and is based on the sale of content within the application. If you have, as in the past case, not a one-time application, but a hypnotically sticky, reusable (social network, messenger, game, dating service), this model will definitely suit you.

Some people confuse f2p and freemium - they say, and there and there the money is paid not for advertising, for the internal resources of the application. But feel the difference: it is not necessary to pay in f2p. The fee only improves the functionality that is fully available. Do you want a character to get levels faster in games? Buy him a magic crystal with +1000 damage for 100 rubles. Do you want to correspond with the use of beautiful emoticons \ stickers (hello, VK!) - buy these same stickers. Do not want - play \ communicate as usual, no one will force you to buy something.

In the case of Freemium, the situation is different. There, in the absence of a board, the user, in fact, receives only a demo version of the application with one or two functions.

In other words, in the case of freemium there is no alternative. To get the full functionality, the user must pay. In the case of f2p, there is an alternative. The user may not pay, but if he pays, the application will become more comfortable.

Advantages of the f2p model:

  • Many opportunities to influence the policy of monetization - what they want, then sell.
  • Independence from advertising and advertising networks.
  • The loyal attitude of users who do not climb violently into the wallet.

The disadvantage is the need for PR - for the successful implementation of such a strategy, a large number of users are needed. As you understand, this is not achieved immediately.

A few words about Gacha. This tricky word is called monetization tactics popular in Japan, in which developers give players random items in exchange for a premium game currency. Tactics enjoy varying success, but more often than not, it significantly increases the interest in the game. Lottery and the ability to win a cool prize for a small fee have always been popular with users.

And yet such type as Paymium is gradually gaining popularity. This option is a mixture of f2p with a paid application. Those. It is assumed that the application will first buy for a certain amount, and then they will buy something inside the application itself. It looks like a brazen rip-off, but it gives a profit. True, not everywhere and not always.

Strategy # 5: Subscription

Well, everything is clear from the name. No?

Okay, we explain. You take money for temporary provision of your own services. Most often it is access to some content (cinema, music, some textual materials), or functionality (music, video, graphic editors, certain "designers", etc.)

The model is quite flexible and provides many opportunities (be it stocks, cheaper large offers, etc.), however there is also a minus - you constantly have to monitor the quality and replenishment of the content, as well as earn reputation and fame. However, if you offer really interesting and useful content to users, you have every chance.

Conclusions and summary

We listed here the main strategies for monetization of mobile applications. To understand which one is right for you, it is necessary to carry out a thorough analysis of some questions, such as “and what strategies are appropriate for this type of application” and “if I’m a user, would I want to buy it?”

Of course, there is no perfect recipe, everyone wins and loses in his own way. It is important to note that such an aspect as "monetization" is best thought out at the beginning of the design phase, and not at the end of the development phase.

Finally, allow yourself some tips:

  1. Be careful with freemium. An application without a promoted brand, a wide audience and / or with the wrong balance of paid and free resources does not earn practically anything.

  2. Do not focus on one strategy. For example, advertising alone is unlikely to bring greater profit to your application. Coordinate strategies, mix them. Perhaps some of the options will bring you success.

  3. When working with a paid model, do not forget about the reduced price at the very beginning. This will attract the audience. The main thing - do not overdo it with a decline.

  4. Make it just a cool and useful product. If you really need it, users will use it.

We wish you good luck in this difficult issue and we hope that your work will not be in vain.