Smartphones are one of the most popular inventions of the last decade. It has brought massive changes in the lives of people. The inclusion of mobile has evolved our lives in so many ways. It has changed the way we live. Smartphones have transformed the way we used to connect, communicate, shop, play, read, pay money, and watch. These days people are dependent on their phones to perform very important or even many regular tasks. A smartphone is a handy and convenient device, which is why people prefer using it over their laptops and tablets.
Mobile is necessarily important because of its element, and for the value, it holds for users. Mobile apps have a major contribution to the success of smartphones, and therefore mobile app development has brought a lot of fortunate for many professional Mobile app development companies.
Mobile apps have become an essential element for small and large businesses and companies. The idea of App development for a business can be a result of the solution to an existing problem prevailing among the lives of potential users. Or, a mobile app can boost an already established business through better marketing, promotions, and sales.
If the mobile app solves a particular problem, people use them to make their lives easier. And the app makes money by running ads. There are other revenue-generation ways for a mobile app. Let’s understand through the example of Uber. Uber solved a significant problem of users’ lives where potential users looking for a cab booking can connect with the drivers willing to provide their services. Before this, users were struggling in finding rides for them. They generally had to go and find a cab on a street, with a lot of hassle. Thanks to mobile app development services, users can now find the cab services at an arm’s length without the hassle of going out to look for a cab.
Likewise, many popular apps, including WhatsApp, kindle, and Line, fulfill many other modern needs of users. However, one of the most critical steps towards the monetization of mobile apps is the right marketing of the app before its launch and following the launch. It is essential to let the users aware of what your app can do for them. Without passing through a proper marketing channel, a good app might not make its place in the market. Social media marketing and email marketing is a wise app marketing approach as users rarely change their social media accounts and email addresses. The following are some of the most popular ways to generate revenue from a mobile app.
Advertising through Mobile Apps
In-app advertisement is one of the most practical and easy ways of making money from a mobile app. In this method, the app owner or developer doesn’t make a direct profit from the mobile app users but get paid from the ads that are run on the app. In this monetization method, the data-driven and highly targeted ads are advertised on the app by a mobile ad partner. Correct ad placement and frequency are very important in this type of mobile apps because if the users feel annoyance from the ads running on their screen, they may withdraw using the app. the ad placement needs to be in a natural way that it feels like a part of the app and users don’t feel ads popping out frequently from everywhere in the app.
Freemium Mobile App Model
Here, the word Freemium is a mix of free and premium, which shows the contribution of both types in this monetization model. The freemium app provides free and paid both types of services on their app. However, in order to use the premium features, the user needs to pay a fee to the mobile app development company. This model works efficiently only if the free version of the app can involve and retain the targeted audience successfully to the app.
Paid Mobile Apps
As appeared from the title, paid mobile apps are apps that can be used by paying directly to the App store. Paid apps earn for the app owner directly when users purchase their app on the AppStore. To encourage users to download a paid app, the app must offer some distinctive services to make it a reasonable choice for users to pay for the app.
Lead Generation through Mobile Apps
An app can also earn money through lead generation and direct sales through the app. This works by making use of necessary details and contact information of the users for other businesses and providing affiliate programs for third parties.
App User Experience holds substantial importance in this model. User experience is one of the most efficient contributors to revenue generation. When users find an app easy-to-use and engaging, only then they come back to use the app. on the other hand, a mobile app offering unsatisfied user experience might end up with declined user engagement. If your app works well enough to keep users engaged, it leaves a good impact on user experience, and this eventually generates revenue.
Similar to the freemium approach, subscription services in a mobile app lets users enjoy additional services, confined only for subscribing users. Netflix is a popular example of the subscription model. Though subscription service does not stop users from using the essential features of the app, for this model, the primary functions of a subscription app must be compelling enough to move users to subscriptions.