App Monetization
  • 13 Feb 2023
  • 1 Minute to read
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App Monetization

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Article summary

What is mobile app monetization?

App Monetization is a method by which app developers and advertisers are able to earn money from the users of their apps.

There are multiple ways of monetizing an app, out of which, in-app purchases and ad monetization are the most popular ones. Running in-app advertisements is one of the most common ways for hyper-casual and casual game developers to monetize their apps. This is a valuable method of revenue generation as it allows apps to be free to download on the App Store and generate money after the app has been installed.

How does mobile app monetization benefit advertisers?

Mobile app monetization is an essential method for advertisers and publishers to remain relevant in the competitive market of free mobile apps and to ensure they can generate substantial ROAS and ROI. Additionally, mobile app monetization improves the user experience of apps, as it makes it possible to personalize ads to the targeted user. This, in turn, leads to higher retention, re-engagement and a potential increase in revenue.

What are the different methods of app monetization?

  • In-app advertising (IAA): Showing advertisements within the app is the most widely used method of app monetization. With this method, advertisers pay the app developer for showing an ad in their app.
  • In-app purchases (IAP): This method requires additional features within the app that allow users to make purchases. These can either be one time purchases or subscription based.
  • Subscription model: In this method, users pay a fee to access the app. This is usually for ongoing content or services such as News apps.
    *** Paid app model:** This requires users to pay a one time fee to download the app.
  • Affiliate marketing: With this method, app developers make money by promoting products or services within an app. This can be in the form of sponsored content.
  • Freemium: This is a combination of where the app is free to download but to access additional features, the users need to make in-app purchases.

Most advertisers look at a combination of the above methods to create efficient app monetization strategies.

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