We all want to have some material and moral motivation in our work. When it comes to creating something, being motivated is even more important because we need to know our product has value for customers. How would you act working in mobile app development? TecSynt is going to show you how you can make money with an app you truly believe in.
There are two different fundamental ways you can choose at the beginning: these are monetization with advertisements or without them. Let’s figure out what you’d prefer more.
Ads! What an annoying thing it can be! If you don’t feel much love for advertisements appearing here and there, your app surely should not contain them. We have several options if you’ve decided to make way for non-ad monetization:
Now, we’re going to add more details to each of the four lines and cover all their basic aspects for your understanding.
No matter how high the price is the customer will be ready to pay if the product is his dream come true. Business owners and app developers have always believed in this simple truth – and implemented this in practice. It led to a huge popularity of paid apps when the App Store has just appeared. Presently, they are less popular, but we still discuss it. Do you want to know why?
1. Firstly, the market of paid apps is less competitive. The number of free apps on the iOS and Android markets is not a secret to anybody. So, your product will feel more freedom on the paid area.
2. Users who pay for the application are ready to spend more time with it. This fact brings you more reviews and improves your reputation.
3. People often think that paid products have a better quality and are done with a higher thoroughness. It’s also super useful for your reputation.
Minecraft: Pocket Edition is the most popular paid app according to iTunes Charts
And you will face two main difficulties. The first one is the marketing side – most platforms prefer to work with free applications. Secondly, higher expectations of the public should make you careful with any step you make developing a new product.
Freemium model is the most popular since 2013. In its core, there are some locked features, which can be opened after paying for them. But the app download is free for any user – and it attracts lots of new customers as they want to use free applications.
When we discuss freemium strategy, you should consider two types of it. The classical approach we’ve mentioned before is a mix of a free version and a premium version (which is paid). Another approach is a so-called “paidmium” model containing in-app purchases.
Here, you won’t find a premium version as we know it. It seems like you can gather your own premium version piece by piece, all by yourself, collecting paid packages. Developers especially like this model when it comes to the gaming industry – users purchase additional lives, more strength, etc. Such an approach allows creating games with a really high quality but still making it free (at least, partially).
Pokémon GO proves the popularity of the paidmium model.
However, you should keep in mind that popularity means working in an extremely competitive environment. Plus, lots of users can be confused with numerous in-app purchases – premium versions are clearer for them. So you have to make all possible to create a pleasant “shopping” environment for users showing them what they buy and why.
Subscriptions in the software world give people access to a certain type of information. Knowing that, we can distinguish some well-known types of subscription-based apps: cloud storages, newspapers, music stores, etc. You’ve probably used Netflix or Spotify Premium and know their working principles.
There are two types of subscriptions when we talk about mobile apps: auto-renewal and non-renewing. And here is a great thing – such apps have huge rising profits during only one year of its existence according to both the App Store and Google Play researches.
Another advantage is people are ready to pay for a subscription because usually, it’s something valuable. If you’re a music fan, you’ll be okay with paying for Spotify Premium and get rid of ads in the middle of the song. At the same time, people may hesitate to pay as they don’t want to tie themselves to the one and only product among the variety of others.
It’s time to figure out how free apps can make money. No matter what you eventually choose, you should be aware of these strategies as the vast majority of mobile users prefer free products. We will mention 6 types of ads in the application, and each of them should be set in the right place:
The greatest advantage of video advertisements is they can be perceived as a piece of entertainment. The user won’t be annoyed so much and will clearly understand what the ad was about. If you think that placing videos in the app can be quite challenging for mobile devices, do not rush to final judgments. Nowadays, lots of users have an access to Wi-Fi connection and can watch even HD videos with their smartphones.
Perfect placement: between certain parts of the app (game levels, for example) or just after the app launch.
Rewarded videos with ad materials are the next step in app monetization. Such content becomes a part of the game flow, and you have to deal with it to get extra bonuses. And trust us, users won’t mind watching a video for several seconds because they will feel benefits from it.
Watch a video ad and get an extra life in the Zombie Catchers game.
Think about other app types – for example, fitness and health. You may suggest customers watch a video and let them watch new fitness content instead.
Perfect placement: anywhere in the app if it looks natural and doesn’t confuse the user.
Interstitial ads will cover the whole mobile screen. Their obvious advantage is that they grab the customer’s attention completely. This size of ads is considered to be the most popular as marketers can place more context and make it more engaging. We can say that video adverts are a part of the interstitial ad type.
Perfect placement: at the app launch or during app breaks (like game levels).
These adverts are smaller than the previous ones, and their usual size is about 300x250. Who of us hasn’t seen such ads in his mobile phone? It makes banners a popular and controversial advertisement at the same time. For lots of market players, such ads are far in the past, but many entrepreneurs still consider it as a monetization strategy – so let’s not leave it behind yet.
You should know that placing a banner, you will face so-called “banner blindness”. It’s a phenomenon when people don’t remember what exactly the ad material was about.
Perfect placement: at the top or bottom of the mobile screen.
Even news sources place native ads.
Following the word “native”, these ads reflect the complete look of the application becoming a part of its design. According to the research, native ads draw much more attention than banners we’ve just mentioned.
All of those recommended posts you occasionally see on Facebook or Instagram are native adverts too – they look exactly like other materials.
Perfect placement: immersed in the app content.
This is a type of ads having an individual approach. Based on the user data, ads will concern only relevant information. Moreover, these contextual materials should reflect the app’s main idea. If it is an app for travelers, you can offer certain places or services depending on the location.
The Waze app offers places to visit in a concrete location.
As you may see, such offerings have limitations in number and can be addressed only to a specific target audience.
Perfect placement: immersed in the app content and it depends on the active user.
You never know until you try. Modern market tendencies encourage entrepreneurs to try out more than one approach to know what works best. If you don’t want to focus your efforts on only one strategy, mix them and wait for the response from users.
Angry Birds is a great example of an app with the blended model: in-app purchases are mixed with advertisements.
Miles Jennings from Recruiter suggests blending even three approaches: take a tablespoon of advertisements, mix it with freemium features, and add some in-app purchases. Your users will win in any case – everyone can get a free app and upgrade it at any time. Find your own strategy that feels right – marketing metrics will help you to know the user’s opinion.
You won’t find a perfect monetizing strategy that can cure any business. Instead, you may create your own mix of approaches or choose only one, working perfectly for your audience. Eventually, your relationships with customers are all that matters as only users can give you a hint on what they like or dislike the most in the app flow.
In addition, make a little research on the app tendencies – what works great for gamers won’t fit well for newspaper readers. We will gladly discuss with you any aspect of user experience in your application. Making the monetizing model a natural extension of the mobile product is a necessity of nowadays.
Make money with the app of your dreams!