With numerous apps distributed worldwide, it’s quite amazing to know how do apps make money? Though not every app can give you money, by deploying the most effective monetization strategy, even the simplest apps can give you a decent amount in return. Whether you are showing a small banner ad or doing affiliate marketing, there are plenty of ways for apps to make money.
However, app monetization strategies differ based on the apps. In this blog, we’ll talk about different strategies for how free apps make money and tips for app monetization.
5 Proven Free Mobile App Monetization Strategies
Let’s read a few of the most popular strategies that make it possible for these free apps to make money by asking users to pay.
Advertising
Advertising is one of the most common and oldest ways to earn money via an app. When talking about this trend in app monetization, individuals can promote their offerings for third-party clients on your application and in return, get paid. The company pays for the advertisement in the form of per impression, per click, and per install.
The most common kinds of ads displayed on your app include:
Banner Ad- These are the kinds of ads that you might have seen posted at the top or bottom of any app. The placement of these ads is considered less intrusive and doesn’t affect the user experience significantly.
Rich Media ads- Similar to their name, rich media ads refer to the popular mediums of media like engaging videos with dynamic CTAs, social media components, QR codes, etc. Several apps give rewards to the users for watching an entire video and one such example is the “Ludo King” app that gives coins for playing a video.
Native Ad- These ads are the most artful among all the ads and are so smartly integrated into the app’s interface that users are unable to recognize them as ads. Rather these ads are considered a part of the content of the app.
Interstitial Ad- These ads are considered an ideal way to promote third-party services or products. There are higher chances of getting more CTR through these ads as they cover the whole of the device screen, obtaining the full focus of the users.
Incentivized Ad- In these ads, the users get good incentives in return for performing specific in-app actions like filling out a survey or poll, sharing content, etc.
List Ads- These ads are displayed several times.
Referral Marketing and Affiliate Income
This is the best answer to how apps make money. In referral marketing, the content-related information related to an affiliated company is shown in the application. The earnings are based on the clicks and number of installs done through your app. This marketing way is used to promote other apps via banners or pop-ups, or for advertising via the in-app store
The most common campaigns used in affiliate marketing are Cost-per-Mille, Cost-per-click, Cost-per-sale, Cost-per-install, etc.
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In-App Purchase & Freemium
Another great strategy for how free apps make money is to engrain the in-app purchases model in your application. This feature lets users who make in-app purchases get some bonus or premium functionality. In similar words, the users can sell any virtual product under the in-app purchase model consisting of gaming currency, or ability to unlock any stage or purchase any fictitious thing relating to any particular game.
The freemium model is another tried and tested monetization strategy with a basic version of the app for free. But at the same time, it encourages users to pay for a premium version as it consists of improved functionalities.
Crowdfunding
Rather than a new strategy for app monetization, Crowdfunding is the answer to how do free apps make money. Numerous popular platforms such as CrowdFunder, AppsFunder, Indiegogo, Kickstarter, etc. are used to generate funds for apps. If you want to attract additional funding for app development or marketing needs, then use any of the crowdfunding platforms where any platform user can donate money.
Email Marketing
Another answer to how do apps make money is email marketing. It is a popular source of marketing for many businesses since inception and helps the team in promoting their mobile apps. In this process, user data (email address) is compiled and then valuable marketing materials based on the users’ interest is shared with them.
The emails consist of special deals, new additions, or exclusive content motivating users to make purchases or engage more deeply with the app
Tips for Effective Monetization
- Make sure that app monetization strategies don’t hamper user experience.
- Customize your strategies based on the likings and behaviors of your user base.
- Make sure you provide enough value in the free version aiming to attract users.
- Be transparent in your approach regarding how do apps make money?
In a nutshell
Free mobile apps hold a significant market share as compared with paid apps. There are numerous strategies for how do apps make money, with each of them having a different user engagement rate and will generate a different amount of income. But the most crucial task is to shortlist the most appropriate monetization strategy and here comes the role of skilled developers and the right strategists who can help.
If you want to monetize your mobile app, then don’t delay. Connect with the experts at Kodehash Technologies who craft innovative monetization strategies based on your business.
Why Choose Us?
- Customized Solutions: We customize our approach to fit your app’s unique needs and goals.
- Proven Expertise: Our experienced team has a track record of successful app development and monetization.
- Complete Support: From design to launch, we offer complete support at every step.
Team up with us to create a thriving, profitable mobile app and take the first step towards app success.