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Kaustuv Dwivedi
Kaustuv Dwivedi July 14, 2022

More than a billion people use smartphones. That’s one out of every three people on the planet. This makes mobile devices the most widely used platform for apps today. Never before has there been such a massive demand in the industry for mobile app monetization strategies that can enable you to create more value and earn more money. There are now many ways to make money online, with mobile apps being one of the most popular options. But how do you know which strategies will work best for your business? What’s more, do you know what questions to ask yourself when trying to answer them? Let me help you out! 

What is App Monetization?

In the world of mobile apps, app monetization is becoming increasingly important. As your users become more technologically savvy, they expect to be able to monetize their apps as well. 

App monetization is making an app generate revenue for its developers. This can be done by charging a subscription fee for the use of an app or by giving away a premium version of the same app for free in exchange for the user making purchases or other actions within the app. App monetization has become imperative in mobile application development, with many business owners using this technique to make their mobile apps profitable. 

The ability to earn money through the use of your app on smartphones and other mobile devices is a growing business strategy. App monetization is a trending marketing concept that began in 2016. Since then, more and more app development companies have been developing apps with monetization opportunities built-in. 

App monetization is the platform and process by which a developer encourages users to purchase items for use inside the app. There are many ways to monetize an app, but these strategies are based on what customers want to purchase or how much they can pay for different products inside your app. Hence, through this blog, we will understand different app monetization strategies you could implement to make your app generate more revenue. 

Why is Mobile App Monetization Important?

Mobile apps have become more than just simple tools for business. They’re vital elements of modern marketing and are building bridges between marketers, businesses, and potential customers. The fact is that smart businesses are investing in mobile app monetization strategies to take their business to the next level.

There is no doubt that app monetization has become a hot topic. The mobile user engagement market is growing at a rate of over 200% per year, with more than half of the world’s population having access to smartphones. This means that app developers are fighting for their piece of the pie. While building an app, monetization options can help define how much money your app makes.

Mobile applications are the future of web browsers and app stores. The rise in popularity of mobile applications is driven by more mobile devices, more users, and consumption per user. A 2017 report by Statista showed that there were more than 6 billion active smartphones worldwide (up from 3 billion in 2015). This growth brings with it an increase in application usage, which is gaining momentum as we move into 2022. Mobile applications are also important because they give brands a new method of advertising to their clients. The future belongs to mobile apps. It’s just a matter of time before they take over completely.

Mobile app monetization is one of the most essential components for success in the next generation. Mobile app monetization is more and more important as a number of entrepreneurs, ventures, and corporations pay attention to mobile app optimization to develop their businesses effectively.

Mobile App monetization strategies in 2022

In-app ads can help you boost revenue

According to Statista, the global mobile ad market is expected to generate nearly $72 billion in revenue in 2018. The mobile app monetization strategies have changed drastically over the years with the introduction of in-app ads, which are a brilliant way to boost revenue. The implementation of an ad network inside an app is not much different than placing ads on websites. In-app advertisements are definitely the way to go nowadays. They provide great monetization opportunities and can be an effective method of driving business growth. 

There are certain tasks that are difficult to do online, like the ones where you have to interact manually with users. In these cases, in-app advertising can provide a solution. In-app ads allow companies to reach customers on their preferred device without having to compromise their brand image or content security.

In-app advertising can be one of the most powerful ways to boost your revenue. This is because it lets you tap directly into the vast pool of app users you want to engage with. 

Freemium Subscriptions Can Drive Conversions

Freemium subscriptions can be a great monetization avenue for your mobile app. After all, the majority of users will be willing to try you out for free before committing to a subscription. In fact, it’s estimated that 90% of users will eventually make the decision to purchase a subscription after their free trial period ends. This makes freemium subscriptions an excellent means of driving conversion through your mobile app and boosting your overall revenue.

Freemium subscriptions can drive up your app’s conversion. If you’ve ever used any of the top 100 free apps on Google Play and App Store as a user, chances are you’re familiar with freemium subscription services like Spotify and Netflix. 

Freemium subscriptions have proven to be a valuable way to drive revenue in the mobile app market. Latest research shows that nearly 75% of apps with revenue growth tracked by app annually ($100m+ ARR) offered some sort of freemium option, with over 40% using this way to acquire users. Since most apps are free in some form, offering a premium membership can help monetize your app without requiring users to pay for it upfront.

The whole idea behind this freemium strategy is that once you get people to sign up, they will purchase more through their trial period and thus help create a sustainable business with a consistent revenue stream on a continuing basis. 

Use In-app Purchases to Create Repeat Customers

In-app purchases are a great way for businesses to create repeat customers.

When you make a purchase in an app, you’re buying into that app’s ecosystem. This means that when you make another purchase, it will be more likely to be one that is made by someone who has already purchased something from the company. This is because of the way the app works: When you buy something in an app, you’re paying for access to what the company offers.

And since people tend to go back to apps they like and use them frequently (and often), this makes it easier for businesses to increase their revenue through repeat purchases.

In-app purchases are also great because they allow you to offer customers exclusive content that they can only get by purchasing something in-app. This means they have more incentive to buy something from you than just the standard version of an app, which makes it easier for them to convert those users into paying customers who will spread the word about your app.

Conclusion

Global app revenues will surpass one trillion U.S. dollars by 2021 and are forecasted to hit two trillion U.S. dollars by 2022. The monetization of these applications is at the very core of this staggering growth, as well as for the development of newly introduced mobile applications, in which a profitable earning strategy must be incorporated from the earliest stages of the overall design process. 

The app economy will continue to flourish, and the need for new, effective app monetization strategies will remain vital in the years to follow. Ironically, the growing demand for these kinds of apps will drive more competition and further increase the demand for effective monetization strategies. I think that has two major implications moving forward. First, if you’re looking for a new way to monetize your mobile app in the future, then consider adopting a subscription-based model. Second, this growth in demand will undoubtedly create rich market opportunities for developers who are willing to go beyond traditional advertising strategies and think outside the box.

The Upshot.ai Advantage 

Upshot.ai is an omnichannel, user engagement, and gamification platform that helps digital product owners and marketers improve product adoption and conversions.

With Upshot.ai, banks, Insurance, and FinTech firms can enhance their digital experiences with pre-built gamification features. It can provide personalized insights, actionable recommendations, and contextual nudges designed to deepen its relationship with its users. 

Book a demo of the most comprehensive user engagement and gamification platform to achieve your digital product goals. Join our communities for more insights, guides, and best practices that keep you updated with proven strategies and tips to supercharge your campaigns.

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