4 Mobile App Monetization Methods You Should Know

6 min


Coming up with a ground-breaking idea in your app is just the start. You additionally must get your head across the totally different cellular app monetization strategies.

In different phrases: how will you earn a living out of your app?

The methodology you select to monetise will fluctuate relying on the character of your app, your trade, and, to a sure extent, luck.

However, the overwhelming majority of apps will likely be monetised utilizing one (or a mix of) these 4 strategies under.

We’ve damaged them down that will help you resolve which one is finest in your app.

Paid Downloads

If you need to make life as simple as attainable, think about monetising with a paid obtain method.

This cuts out all the trouble of (1) implementing ads and (2) growing options that solely unlock after the person has made a purchase order.

How it really works

Each time a person downloads your app, they pay an upfront charge and also you receives a commission.


Both the App Store and the Google Play Store take a 30% share, which means you’re taking a 70¢ minimize from every greenback income you generate.

The extra you cost, the extra you earn from every obtain.

Best of all, you realize the actual financial worth of every person. This shouldn’t be underestimated relating to setting your promotion price range.

Any disadvatages?

The greatest impediment you face with this methodology is the competitors from 1000’s of different “free” apps.

For this cause, many builders create a free model and a premium “upgraded” model of their app.

The concept is that you just win the person over on the free model, they usually’ll buy the premium model to entry additional features at a later date.

Secondly, when a person has to open a pockets to obtain your app, expectations rise. Regardless of whether or not your app prices 50p or £10, glitches are now not tolerated.

Finally, there’s additionally an unwritten rule that the person received’t encounter infinite ads or in-app buy requests.

You can nonetheless add additional monetisation strategies, however you’ll meet extra resistance.

How do I implement this methodology?

This is likely one of the best monetization strategies to implement.

All App Stores will ask you to finish a pricing discipline once you submit your app for the primary time. Simply set your worth on this pricing discipline once you submit for publishing. Easy!

In-App Purchases

Concerned the value tag connected to your app will put customers off?

Consider making it free to obtain and monetize as an alternative by encouraging customers to make purchases as theyuse your app. This is named In-App purchases.

How it really works

In-app purchases can take many varieties: an additional exercise in a health app, a one-time cheat for a cellular sport, or a premium function in a productiveness app.

As with paid downloads, you pocket 70% of the income you generate, with Google and Apple taking the remainder.

The necessary factor to recollect is that your app ought to be practical with out the extra buy; with the add-on enhancing the person expertise.

Candy Crush make $1 million day-after-day with in-app purchases

An important instance of in-app purchases in motion is Candy Crush Saga.

Around 80% of its fanatical following get deep into the sport with out ever making a purchase order. However, people who do, generate virtually 1 million {dollars} in income each single day!

Any disadvatages?

In-app purchases generally is a threat.

Even if customers love your app, some won’t ever, ever buy something.

In reality, it’s been estimated that not more than 20% of customers will ever purchase upgrades, and this quantity might be as little as 1%! When you monetise this fashion, income can fluctuate vastly.

Remember although: even when much less customers pay in your upgrades, that is offset by the truth that your free app will appeal to significantly extra customers.

How do I implement this methodology?

You’ll need to embed the “unlockable” content material into the design of your app, and handle the main points by means of the App Store.

For a extra thorough rationalization of what this entails, this can be a good guide.

If you desire a tried and examined methodology of monetization, ads is perhaps the one for you.

This is the strategy favoured by new builders, who maybe don’t have the expertise to implement in-app purchases however nonetheless need to generate income from their app.

How it really works

With costs low and CTRs small, solely sure varieties of apps go well with the in-app promoting mannequin.

Generally an app that has loyal returning prospects are likely to go for the promoting possibility. Categories like information, video games and reference are a very good match.

Flappy Bird’s banner advertisements have been seen by hundreds of thousands day-after-day

This is how Flappy Bird grew to become so profitable.

Each sport was notoriously quick and there was a aggressive ingredient encouraging ongoing play.

Flappy Bird added a banner advert on each game-over display screen, which means their ads have been displayed tens of hundreds of thousands of instances every day.


In addition, many sport builders have caught on to the facility of incentivised ads.

Chris Chedgey of App Business Podcast provides his ideas on the subject:

I really like digital foreign money mixed with incentivized video — cash for hints, content material, gameplays, energy ups and so on. It provides the customers who don’t need to spend cash in video games — like me — an alternate.

By making video ads optionally available and providing clear incentives for customers who watch them (for exmaple, receiving additional sport credit score), you’ll bypass the vast majority of person objections.

Get the worth of your reward proper and the vast majority of customers will recognise the good thing about watching video adverts.

Your views will sky-rocket and so will your promoting revenues.

Any disadvantages?

This method is considerably intrusive and may diminish the person expertise.

Think about it: what number of instances do you get annoyed by adverts disturbing your favourite television present? An app is not any totally different.

Having stated this, should you don’t go overboard and search for pure factors to show the advertisements, this may be prevented.

For instance, a 30 second video advert earlier than every sport is much too imposing, however small banner advertisements are typically inoffensive.

Finally, as talked about above, costs are small and CTRs low, so you actually need to have an enormous viewers. Advertising doesn’t work should you’re not reaching 1000’s of day by day energetic customers.

How do I implement this methodology?

There are many ready-made options should you’re wanting so as to add promoting to your apps.

Head over to RevMob for one of many higher choices.

Revmob promise the best eCPM within the trade by selling the largest apps with the largest reputations, and also you’ll receives a commission every time a person clicks one in every of your advertisements and downloads the app.

Google’s in-house answer, AdMob, is one other nice possibility. It has the additional advantage of mediating advertisements from a number of sources to maximise your income.

At Mobiloud, our prospects get to make use of MoPuborGoogle DFP out of the field. They have most flexibility in putting banner advertisements and interstitials from their very own stock or advert networks comparable to AdMob, iAd or Vungle.

Native Advertising

Last however not least,  we’ve the brand new child on the block: native promoting.

This goes to be large – so hear up!

How it really works

A local advert differs from a conventional advert.

Native promoting is built-in into the general appear and feel of your app.

In different phrases, the advertisements aren’t there to distract customers, however to improve the expertise. This means they’re way more user-friendly.

Consider a soccer sport, the place, after finishing a sure stage, you unlock a Manchester United shirt. The commercial is hiding in plain sight, however it doesn’t detract from the person expertise (except you’re an avid Liverpool fan). For many, it makes the sport higher.

In the true world, BuzzFeed have been one of many pioneers of native promoting.

Alongside their many quirky tales from across the internet, their feed included one or two sponsored listings. Users have been barely in a position to inform the distinction as a result of the content material was of an equally excessive normal.

Everyone was joyful: customers bought good content material, advertisers bought clicks and builders bought paid.

With conventional advertisements all however ignored by customers, this new method to implementing promoting in a pure, practical method has considerably elevated CTRs-earning builders more cash.

How do I implement this methodology?

Google, Twitter and present chief, Facebook (with their wonderful Audience Network) are battling it out in a race to be king of the native advertisements.

Whilst they’re attending to grips with the platform, get in contact with InMobi and MoPub-the 2 leaders within the native promoting world.

Mobiloud already integrates MoPub’s native promoting answer.

MoPub, being a cellular advert server, provides our prospects the choice of promoting their personal stock or utilizing any native promoting community.

MoPub’s native advertisements provide the means to work with direct advertisers, promote your personal options and apps, and drive extra income from over ninety-five demand companions on the MoPub Marketplace.

Want to search out out extra about Native Advertising? We go into extra element in this post.

Wrapping Up

While the overwhelming majority of apps will likely be monetised utilizing one in every of these 4 strategies, sadly there’s no strategy to know which one will work finest in your app.

To determine this out, you’re going to need to do some good old school testing.

Our advice can be to strive every answer out for measurement earlier than you commit to at least one methodology.

Good luck!

Looking for methods to market your app? Check out this post subsequent.

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