What is app monetization?
App monetization is the process of generating revenue from apps. It is not enough that the app is developed and ready to be used; an app must also generate monetary returns for the developers.
Why is app monetization important?
App monetization enables app developers to create sustainable businesses around their apps. It is the most crucial part of the app business as it encourages developers to update the app to add more features and stay on top of the game.
App monetization strategies
Below are a few methods to monetize your apps:
- In-app advertising: It provides advertisers with a unique opportunity to leverage an app's user base and provide them with highly-targeted messages. App developers benefit from this by selling their ad space to advertisers.
- In-app purchases: In-app purchases refer to digital items, features, and other digital content that can be purchased and downloaded from an app, especially games. They are essential for app monetization because they offer an alternative to in-app advertising.
- Subscriptions: They allow users to purchase content that further describes a service or product in the app. It gives the app owners more control over the monetization of their app, as they can now sell users' data as well.
- Sponsorships: They are a way for brands to sponsor an app's user experience. This includes the ability to showcase an app icon, in-app ad unit, or in-app product placements. When we say product, we're not talking about a product you might want to buy in the real world but placements for digitally available products.
- Licensing: If your product or service targets an app-centric audience that generates user-generated data, then you may want to consider licensing this data to monetize it. Licensing your data can be an excellent strategy for app-based businesses. It allows the user to access products for free and makes it easy for them to understand the product's value - they're paying for the license to use it.