Most people today use mobile apps. And as per Allied market research reports, you can expect the global mobile app market to value around USD 777.4 billion by 2032. This data clearly shows the growing rush in mobile app users, leading to a sudden surge in mobile apps.
These mobile apps serve two critical objectives for publishers – to present the content to a larger audience and generate better revenue. And believe me, publishers have that first part sorted – it’s the app monetization strategies that can get challenging. However, there are multiple ways to monetize your iOS and Android apps and make money. This is how apps also offer tremendous potential to users and publishers.
Your app can make money in dozens of ways, but which app monetization strategies best suit your business needs, audience, and content? Different apps require different app monetization methods. A shopping app isn’t the same as a gaming app, so it’s better to plan your mobile app development strategies accordingly.
Hence, using the ideal monetization model and strategies is integral to the mobile app development process. In today’s article, I’ll talk about the top app monetization strategies that can seamlessly work for different app monetization models.
Understanding iOS and Android App Monetization
Well, in the case of iOS applications, users are more willing to spend money on app purchases and subscriptions, resulting in better revenue generation. Moreover, the systematic nature of the App Store enables easy-to-implement in-app purchases and more efficient monetization strategies.
Although iOS app users tend to spend more, developing Android apps are quite common and still hold a massive market share, presenting many monetization opportunities. The open-source nature of the Android platform enables much more flexible advertising solutions that are accustomed to your needs.
Now, let’s go through the heart of this article – the best app monetization strategies.
Best Ways to Monetize Android and iOS Applications
The following are the best strategic app monetization options that can help maximize your app revenue:
Freemium Model
Under this Freemium monetization approach, users can install a free but limited app. This means they can only access the basic features and functionalities for free while paying for additional or advanced features.
The most prominent examples of the freemium iOS and Android monetization model are Spotify Premium and YouTube Premium. Under this model, both these apps allow users to access the basic features and functionalities for free.
In-app Purchases
In-app purchase is the most popular app monetization model for iOS and Android apps. Users can purchase anything inside the app, such as subscriptions, consumables, and non-consumables. Several gaming and e-commerce apps opt for an in-app purchases model to monetize their mobile applications.
It is quite a successful app monetization strategy because users feel intrigued to purchase items or features within an app once they install it. The in-app purchase model also serves as an interface between users and developers.
In-App Advertising
The in-app advertising model is one of the most profitable ways to monetize iOS or Android apps. In this model, you must run ads inside the app for revenue generation. This model is commonly used in entertainment, streaming, social media, and gaming apps. You can use different ad formats, such as video ads, interstitial ads, banner ads, etc. As per Grandview research, the in-app ads market size is expected to grow 13.2% by 2030.
In-app ads are efficient because people with mobile devices spend a reasonable amount of time on apps. So, by running in-app ads, you can increase your exposure, leading to higher conversion rates.
Subscriptions
The subscription-based app monetization model is gaining immense traction in 2024. Here, users can download the app free of cost. However, they must pay weekly, quarterly, or yearly membership charges. It is one of the most common revenue-generating models for developers, and organizations like Dropbox, Spotify, Tinder, and Netflix rely on this model. Hence, by providing these subscriptions, app developers can easily retain clients.
Also, to optimize user experience, you can provide different subscription levels, such as primary, pro, and premium. Or you can even go for more eye-catching naming conventions such as gold, silver, platinum, etc.
Hybrid App Monetization Model
So, merging two to three app monetization strategies is called the hybrid model. Certain app developers deploy the integration of in-app purchases with in-app apps to generate maximum revenue.
Let’s take an example of the app using a Hybrid monetization strategy for Android and iOS applications – it’s a gaming app utilizing freemium, in-app advertising, and in-app purchases altogether. You can download the app for free, and players can do quite a bit of shopping at advanced game levels. They also have a choice to unlock additional tiers and access exclusive content.
Paid apps
The paid app model is commonly referred to as the pay-per-download model. Here, app developers can gain a considerable amount of revenue by charging a one-time fee from users to download and allow them to access the app. Also, it’s the responsibility of the app owner to decide on the one-time registration fee for an app, considering multiple factors such as app features, functionality, etc.
So, if you’re considering opting for this app monetization strategy, mark my words – your app should have some powerful features and functionalities that let the user pay the charges. So, when we talk about paid apps, most iOS app users are inclined to pay for them. Before adopting this model, you must build an app that gives users a ‘WOW’ feel.
Wrapping it Up!
So, there you have them! The top app monetization strategies for Android and iOS apps. However, to take full advantage of these strategies, you should deliberate how you develop your app. Also, choosing the ideal app monetization strategies can make a massive difference if you want higher client retention rates and make your app more lucrative. But ultimately, it all depends on the user experience.
And if you need help implementing any of these app monetization strategies, I recommend you connect with the app development experts.
That’s all from my end.
I hope this article helps answer all your questions.
Thank you for your time and patient reading.
Happy Learning!