In today’s world of rapidly skyrocketing competition, staying afloat can often become a tricky affair for app developers, especially when they do not have access to external funding. Based on the March 2022 records, there are approximately 4.8 million apps on the Apple App Store, and nearly 2.6 million on the Google Play Store. Thus, you can already understand how fierce the competition has become.
Just as the escape room businesses need to constantly update themselves on the latest trends in the market, app developers need to remain informed on the latest app monetization strategies to stay afloat. In this article, we will talk about how you can generate revenue through app monetization tactics without having to compromise your user experience.
Utilize in-app advertising strategies.
App developers can work on using banner ads to integrally engage with and immerse their users. The evolution of banner ads has led to the incorporation of various new options in them, like interstitial ads, video ads, native ads and text ads.
Many users associate the use of in-app advertising with banner ads on a website to drive more organic traffic. Given that in-app advertising drives more audience than the sole use of banner ads, they can be fruitful channels to engage with your audience.
When you start using in-app advertisements, it allows your users to choose to download your app only if you advertise products or services relevant for their purpose. In this way, it allows you to gain more targeted users with a specifically targeted audience, that allows your marketing strategies to be more effective.
Offering free and paid app versions.
Nowadays, almost all apps are working on providing two different tiers of their apps – free and paid. The use of free and paid app versions allows you to effectively monetize your app.
The free app version allows you to limit the number of features you offer the users, so that you can ‘encourage’ them to sign up for the paid version of your app. Further, you may also choose to monetize your free app by using different in-app advertising strategies.
The use of free and paid app versions can further offer you an added benefit. It allows your users to experience the feel of your app by checking out the limited and basic features offered on the free version of your app. Then, if they find your app useful and relevant for their purposes, they can sign up for the paid version.
At the same time, it allows you as the company to gradually benefit from a growing user base which you can then monetize using app upgrades or in-app marketing.
Using native ads to improve your CTR.
Native ads serve as an immensely successful and potent ad format in the app monetization model. They are designed to seamlessly integrate within your host app, and they pop up quite seamlessly as just another post on the app feed. Native ads can be the perfect companion for news sites and social media channels.
Given that you are correctly implementing the use of native ads, you will notice how they offer the most minimal disruption to your user experience. At the same time, they also offer one of the highest engagement rates. Studies have revealed how CTRs via native ads are about 8.8 times higher than the regular use of ads.
Native ads are one of the best performing ads in comparison to most of the known ad formats. They help you to drive better conversions to your site and generate greater revenue than ever before.
Furthermore, customers usually find it hard to blindly trust a particular brand. Under such circumstances, the use of native ads can be immensely fruitful for your purpose. These ads will help you build trust amongst your audience by sharing valuable content with them without intruding upon them using pop-ups and intrusive messages.
Providing free apps with in-app purchases.
Using in-app purchases in your otherwise free app can serve as another judicious way of monetizing your app. Various top-rated apps including YouTube and Tinder use in-app purchases.
In case of free apps with in-app purchases, companies usually offer the app itself and the basic features in it for free to users. However, the trick lies here: when users feel like advancing themselves inside the app or wish to enjoy some of its premium features, they will need to make payments.
Many brands have found yet another interesting way to use in-app purchases. They offer their users access to these premium features still for free. But the only tactic remains that users need to be patient enough to wait for particular premium features to be unlocked or need to engage with the app daily. In doing so, they can still use the app for free indefinitely.
Now these are just a few of the many ways you can monetize your app with downgrading your user experience. So, get ready to try out these tactics on your app and start generating some extra funds in a matter of time!