What is making money from mobile apps (app)?
Making money from mobile apps is the process of converting users into revenue. Some app categories are more suited to some monetization models than others. Some apps focus on a specific way to make money.
Why make money from important apps?
While working as an application, our developer is sometimes prone to occupational diseases, so too focused on arguing the superior techniques but forgetting the purpose of the application is to help users add utilities. Users often do not care about what you use behind, only care about the effectiveness that it brings.
And to have a useful app, the app will need to bring in some way for the app owner to accept the cost of making and maintaining it.
In order to make money from the app, it is important to research the monetization strategy, your strategy needs to ensure
- App generates revenue
- Retain regular users, and ensure user experience
Many owners ignore the second idea and forget that they affect each other and need to be aware to be able to maximize sales.
Why is user experience important with app monetization?
User experience is very important for a successful app monetization strategy, because revenue comes from users and to have more app users needs happy users (in other words, a good experience).
But making money often harms the user experience, even with less reduction, you still have to make money, so you need to consider choosing the appropriate strategy to balance between the two issues.
Numbers about making money from app
Revenue from making money increases rapidly and is a large market.
Allocate revenue according to monetization strategy.
At the top is still in-app advertising with many ad formats catering to different monetization strategies.
Paid apps remain in the right place but are slowly catching up and could soon be overtaken by the subscription service Subscription.
The subscription service appeals more to the app owner as it generates a steady stream of revenue and they can decide whether or not to maintain it, and users do not need to spend too much money to be able to use a good application. , because as before, good applications need a lot of development costs so the price is usually not cheap.
Money making strategy
There are many strategies for monetizing different apps, and app owners can choose the most appropriate strategy according to the type of app they own, or combine several strategies together to diversify and compare. compare results.
Advertising in the app
This is a common strategy because of the ease of installation and a simple model but it can affect the experience of the app user. Users, after using the free version with ads, find the app useful, can buy a paid version to remove all the ads.
The advertising vendors have tried to generate different ad formats for the right cases to minimize the impact on the user while ensuring good sales.
Major providers of app advertising can include Google AdMob https://admob.google.com/home/ and Facebook Audience Network https://developers.facebook.com/products/audience-network/
Now let’s take a look at some popular ad formats
This is the most original ad, the commercial banner is inserted interwoven into the app screen. The ad size is small, so advertisers only pay this kind of money and because of its small size, it is difficult to read, advertisers try to attract attention by making effects to attract but that. even more distracting to the user, the user also has less interaction so the sales of the app owner are not much.
Interstitial Ads (interstitial ads)
Because the ad banner is small in size and annoying to users, the advertiser has looked for another alternative to it: full screen ad and interlaced display while the user is using it. application.
However, the app owner needs to consider the strategy of displaying interstitial ads in the application, the best time to display interstitial ads is when the end of a stream, for example a game level or a process Photo editing work. And the time between ad impressions should not be too short, because the streams have different time, so if the flow time is too short, the display of too many ads is counterproductive and annoying for users. The choice of display time is very important because it both helps users to relax the tempo and do not cause trouble. In addition, the app owner should pre-load the ad content, because the full screen ad will be of high quality and large size, so it needs to be loaded first and ready to display immediately when needed, improving the app user experience.
Native ads (original ads)
Native ads are created to minimize the hassle of showing ads to users. The owner can customize this ad as a component of the application as a post on the Facebook timeline. A reasonable setting of native ads both keeps the user experience and brings about a clear revenue effect.
Even though the ads are user-friendly and app content, the app owner should keep in mind that there is always a warning to the user that it is an advertisement, and that the user touches it is because they want it, not it. Deceived that it’s app content. The designation helps advertisers not be damaged and ensures effective advertising hiring.
Rewarded Ads (promotion ads)
The award-winning ad will allow users to choose to watch the ad in about 30 seconds in exchange for something in the app or in-game product. App owners need to consider the reward level after viewing ads is appropriate so that users feel worth spending time watching ads and winning rewards.
Affiliate advertising is that you will place advertising content to advertise a certain product or service and receive a commission from the user clicking on the link link you have previously registered.
Due to the halo effect, users will usually trust one thing if it relates to something they already trust so this is useful in some cases.
General rules about ads
App owners need to consider selecting an app display ad strategy to balance the user experience so that they can maximize revenue. There is no best way from the beginning and the app owner needs to experiment and can combine many strategies to compare.
This is a long-standing and fairly simple strategy that users will pay a fee to use your application for life. Usually users only pay the fee when they have used the free version with ads or the free version with limited features. For many users, it is often difficult for them to accept an payment even before the app has been used. In addition, the lifetime purchase of applications makes it sometimes difficult for owners to maintain and update the app, especially with cloud services, if you do not want to be said to be a scam, it will take a long time to maintain and resulting in little profit. Although the store also has a policy to refund the fee if the user buys and exchanges soon, it is not enough to attract more users. Because of that, this model is less and less attractive.
Buy virtual products in the app: money and goods
App revenue comes from the fact that users pay real money to buy money and virtual goods in the app, or some physical goods or services.
Money and virtual goods
This strategy is often popular with games, where users pay real money to buy virtual products in the app with the desire to have an advantage rather than spend a lot of time to achieve something in the app.
However, the app owner also needs to calculate the balance between buying virtual products and ordinary users to keep the normal users, even though they have not generated revenue but still are the potential and part of the ecosystem. , and the user has made a purchase for them to continue using and will buy again later.
Genuine goods and services
As simple as retailers can sell their products or service providers create apps to sell their services.
However, the commission of payment when buying products in the app for the store is usually quite high, so the suppliers will not pay much attention but will prioritize the popular and popular payment methods in the market they target. .
For example tiki, shoppe, lazada will prefer payment by COD, domestic bank, e-wallet or visa without in app purchase.
Subscription and freemium
Basically, this strategy allows the user to use the app with part or all of the features over a period of time. After the trial period is over, we will have to pay for a lifetime (freemium) or a later period (Subscription).
Subscription is becoming more popular and popular because users will pay when they use it, the initial cost is not so high as buying a paid app for lifetime use, users are supported more and find it worth the money. than. On the app owner side, there is regular revenue, predictable sales, additional costs for long-term app development, and users who choose sub will use the app more frequently to generate more data. Why is it better to generate more data then I will talk about that later
Recently popular are Spotify, Netflix, Youtube premium
Make money from data
We talk a lot about user experience when talking about making money, because it’s important to keep users engaged in the app. Without a large interactive community, it is hard to make money effectively when the current trend is to connect and interact with each other. And the more people use the app, the more data they generate.
This information can be anonymized and quantified, thereby providing a valuable insight into customer behavior. This data is heavily sold to service providers or advertisers to provide the best personal experience for users.
This data will support firstly for the app owner to know the user behavior and thereby improve the app better, in addition to this data also supports other forms of making money more effectively, Advertising is more targeted to the audience.
Make money from data that works silently and is not annoying to users like ads, and sometimes helps users quickly provide the services they are interested in. In addition, app owners do not incur commissions on store purchases.
The most typical of these is Facebook
Stock exchange, banking, or sharing platform platforms such as grabs, market places like tiki will charge fees based on transactions. The fee per transaction is not too much, but if the number of users is large enough, the amount of fee is a huge number.
The note to make money from the app effectively
- Search for new users
- Combining many strategies
- Measurement and analysis
- Updated frequently
- There is a difference
- Don’t forget to make money from data and be transparent
The trend of making money from app 2020
- A good app experience will make it easier to make money
- Gradually limit paid apps
- Users don’t like paying too much for extra features
- Subscriptions are becoming more popular and more like a SaaS product (software as a service)
- The user needs to know how to monetize data and how to refuse it
- Advertising in the app is still a way to make money, but need to ensure user experience
- Users want the app to be free to download
- Subscription registration apps will become more popular as the store reduces commission rates
- Monetizing data is an effective way to generate revenue without compromising user experience.
- There are always plans to make money from your app
- Combine various monetization strategies for good performance and make sure everything is balanced
- Using data to improve apps, always learning and improving will increase efficiency many times.