According to recent market surveys, around 96% and 92% free applications on the Google Play Store and Apple App Store are free, respectively. Why would anyone be buying an application if most people are acquiring the free options and how is anyone actually generating revenue if free apps dominate the download charts? App monetization is a lot more complicated than one might imagine. Here’s what you need to know:
A commonly used method of making money off of your application is by putting various ads on it. Most free apps tend to make money by displaying a wide variety of ads. Each time an ad is displayed, clicked on, or installed using the ad, you generate some form of revenue. There are numerous forms of ads, which can range from small pop-ups during loading segments to banners that appear while you’re using the app.
There are three forms of ad programs—Cost per Thousand Impressions (CPM), Cost per Click (CPC), and Cost per Action (CPA).
Another prevalent solution that many app developers use are in-app purchases. The base application itself can be acquired for free, but you will have to make a payment for some of the premium features. Generally, these apps have fairly limited features with most of the great applications behind a paywall. They incentivize users to try out the application for a bit and when they’re aware of the value that it provides, they lure them in with the additional features. It’s a tried-and-tested model that works if your product is worth buying.
While not one of the most popular options by any means, the partnership model is feasible for various successful businesses. Here, an application is available for free and makes money from different companies sponsoring them. In return, they provide access and advertisement to their sponsor, putting them in good light to their users.
Despite the abundance of big applications available for free, many applications can only be used if you pay for them. Such applications are also thriving and tend to stand out in the market as they’re on the paid section, getting variable organic traffic. While it can be a tough sell to convince users to pay for the app, some apps are becoming open to demos.
Instead of going with the in-app purchase or freemium design, these give you a limited time hands-on demo of the application, but you have to pay for it after the trial ends to continue using it.
It doesn’t matter which monetization strategy works for your needs, Softwareistic can help you implement it. We are an Android and iOS app development agency providing Flutter App Development , React Native App Development to help your business flourish. We help businesses from different domains build their apps from the ground up or revamp their existing functionalities. We also develop solutions for wearable devices.