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Mobile monetization concerns the method and tactics that an app applies to produce revenue. Mobile monetization can come in the form of in-app purchases, advertising, and sponsorships.
Studies have shown that less than 10 percent of mobile users are prepared to pay for an app, so it is up to marketers to discover other ways of generating revenue. To secure healthy mobile growth, marketers can try one or more of the following approaches:
To guarantee the greatest ROI on a new app, marketers should carry out a thorough messaging campaign in the months leading up to launch, not only to alert customers to their product but also to attract potential investors. By utilizing the app monetization methods and keeping costs down, marketers can still make money from a free app.
By using alternative methods to make money rather than charging for the app download itself, marketers can provide a better experience for their app users, particularly those who do not want to commit to paying for a product which they know little about. Equally, app monetization provides an ROI for app developers. Investors and affiliate partners will also reap the rewards of their investment into the app.
Mobile teams can customize these monetization methods to further benefit the customer. As an example, personalized ads based upon user behaviors are more interesting than generic ads. This provides a better experience for users and more impressions for advertisers, leading to greater revenues for marketers.
Mobile monetization provides revenue streams for apps without added investment. This was evidenced in the case of TextNow, who managed to increase their revenue stream by 43 percent after implementing more ads within the app. By serving contextual ads to their users, TextNow secured 247 percent more ad impressions on iOS and 479 percent more ad impressions on Android.
Mobile monetization is a hugely effective way of combating the increasing costs of customer acquisition. By engaging users with relevant ad content, marketers can increase revenue and continue to enhance their apps for future users.
To find out more about how one set of marketers managed to monetize their app for 100 percent of users, read our TextNow Mobile Monetization Case Study.