How can you generate revenue through app monetization

Published:Feb 29, 202408:46
Updated on:Feb 29, 2024
How can you generate revenue through app monetization

According to Statista, in 2021, 230 billion mobile apps were downloaded for their use on personal devices. It is estimated that mobile apps are going to generate $613 billion in 2025.

This data shows us that people are using mobile apps largely and also working on them accordingly. No wonder app owners want to have their applications monetized. 

What is app monetization, and what are the best methods to generate revenue from app monetization? That is what we are going to discuss here. 

We will also try to make app monetization an easy concept for you. We will break down various app revenue methods in the easiest way possible. So, without wasting any further time, let us start with the first discussion.

What Is App Monetization?

The process or way in which you can generate revenue from the apps on your mobile phone is called app monetization. There are various methods through which you can earn revenue through apps, like applying advertisements, adding space banner ads, rewarding videos, etc.

If you are generating greater revenues and money from your applications, then you get additional that you are generating some kind of value for your customers. User experience matters a lot when it comes to in-app revenues.

In the following article, we are going to discuss the app monetization models through which you can generate ad revenues.

App Monetization Models to Generate App Revenues

Let us now check and study some of the best app monetization or app revenue models through which you can generate a generous amount of money through your applications. These models will not only help you generate ad revenues but will also help you skyrocket your business.

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 In-app advertising

Ad revenue has been one of the most successful monetization models ever. It is estimated that the in-app advertising market is worth $66.78 billion. This is expected to reach $72.6 billion by 2027.

What does “in-app advertising” mean? It is all about earning ad revenue through your apps. The app owner incorporates ads into her application, and whenever any user clicks on the ad, The owner generates some amount of money. In other words, a certain amount of money or ad revenue is generated for the app owner based on the number of clicks.

There are different ad formats in which you can apply the advertisements in your application. They are banner ads, full-screen interstitial ads, rewarding video ads, and native ads.

The best thing about in-app advertising is that it can be easily incorporated into free apps and does not irritate the user much if implemented properly.

1.  In-app purchases

It is exactly what the name suggests. In-app purchases mean that customers will be able to get any kind of service, features, or content of their choice in return for some amount of money inside the app.

By incorporating in-app purchase ads into your app, you can generate a certain amount of ad revenue if any app user clicks on them.

There are various methods and ways through which you can generate revenue from in-app purchases.

1.     A user can also purchase different services or online features.

2.   Freemium models: these are the types of apps that are free to download. The two types of premium models are basic apps and premium apps.

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3.   Subscriptions are the features used by various music and video content services like Netflix, etc. If you buy any subscription to different entertainment, storage, news platforms, etc., you can watch their provided services for free according to the charge you have given. Sometimes these services also offer you a free trial so that you can buy their premiums.

2.  Affiliate link revenue generation.

This is also a great method if you want to generate large amounts of additional revenue through your app. The only thing this feature requires is a decent number of regular users on your app. If you have regular and trusted customers of your app, you can easily incorporate affiliate links wherever possible. If any user clicks on that link, you will generate a certain amount of money.

3. Selling the data

Maybe this does not sound appropriate to you and is not your cup of tea, but it is legal and many app owners are generating great revenues from this method of the revenue-generating model. All you need to make sure of is not to share any personal information about your users.

Even though a customer needs to know about her information being shared, you have to include this clause in your terms and conditions.

4. Email and SMS marketing

If you are the owner of an app that is more about shopping or food delivery, then you can easily generate greater revenue with this method.

Through this method of marketing, your users will engage with your app more frequently, which in turn increases the number of purchases and hence your revenues.

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You will be amazed to know that there are lots of people who have more than two apps of their own. They are generating substantial revenue from all their apps.

All you need to remember is to provide something unique, useful, and interesting that adds value to your user experience!

Author Bio – I’m Akash Yadav, an experienced Digital Marketer, and Strategist, been in the IT Industry for the last 5+ Years. Currently working with AppBroda Tech – a mobile advertising platform that helps app publishers and developers reap and optimize ad revenue. Skilled in constructing a Digital Strategy, Growth Hacking, etc.

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