App Monetisation: 3 key strategies to start earning money with your apps today
3 key strategies to start earning money with your apps today
At the core of every mobile strategy is the question of the specific benefit of apps for your company. In other words, how you can align your app monetisation strategy – directly or indirectly – with your needs.
Current figures illustrate how quickly the digital world is changing towards mobile and how enormous the growth potential is. AppAnnie, the app analytics and market data company, expects global consumer spending in all mobile app stores to increase by about 30% in 2018 compared to 2017, raising total spending to an incredible $110 billion. In addition, by the end of 2018, around 80% of global Internet usage will be via mobile devices such as smartphones and tablets. With all these forecasts, one thing seems crystal clear – potential and money is abundantly available in the market. Just how to have a share?
We have summarized the three most important strategies for you:
- Direct: Paid apps, in-app purchases, subscriptions
- Indirect: Influencing buying behaviour through marketing, additional services, branding
- Lateral: Paid third-party advertising or sale of user data
App monetisation through in-app purchases
First of all, the app The Economist Espresso demonstrates how to earn money with in-app purchases. Every morning, it provides its customers with an overview of the most important topics of the day compiled by editors. The app is available free of charge, including one freely accessible article per day. Besides that full access will cost $3.99 a month. In February 2018, the app recorded almost 30,000 downloads and generated sales of more than $230,000. Most noteworthy, a big plus of this strategy is the low installation inhibition threshold. As a company, this gives you the opportunity to inspire users with sample content and arouse curiosity through additional offers.
App monetisation through additional services
An excellent example of how you can indirectly earn money with innovative augmented reality marketing is the app Ikea Place. The app provides its customers real added value in the purchasing process by allowing them to project objects from the product range to the desired location in their own home. Afterwards, the consumers can virtually walk around the furniture and check whether it fits into their own environment. Above all, the decisive advantage with this strategy is the creation of an additional sales channel and a significant reduction in the number of returned goods. According to a study by the University of Regensburg and the EHI Institute, 80% of the online retailers surveyed stated that the most important factor by far in reducing the number of returns is a detailed product description and precise presentation of the product (3D product preview).
App monetisation through third-party advertising
Finally, you can also make a lot of money with third-party advertising. A particularly promising option is to embed so-called native ads. Facebook and many other companies are already successfully using this type of ad integration and are particularly appreciative of overcoming conventional adverts. Certainly one of the biggest advantages of in-app advertising is that consumers spend almost 86% of their total mobile time (smartphone and tablet) in apps. Therefore, it’s no surprise that mobile advertising already accounts for the lion’s share of total expenditure on digital advertising.
Want to learn more about how you can take full advantage of your apps’ potential and finally earn money with them? In our new whitepaper, you will find everything you need to know.