With the tremendous growth in the popularity of mobile devices, there exists excellent monetary opportunities for app publishers and mobile app development companies in 2017. The app market is growing at a tremendous rate and this provides many opportunities for savvy businesses.
Mobile apps are rapidly becoming the go-to resource for many of the tasks that each of us performs every day. | Photo: TechStage (Flikr)
In a recent report from app store intelligence firm App Annie, it was estimated that app store revenue will more than double between 2015 and 2020 ($70 billion in 2015 to a predicted $189 billion in 2020). Mobile apps are rapidly becoming the go-to resource for many of the tasks that each of us performs every day. From communication to shopping, productivity, entertainment and more, mobile apps are now an important part of our everyday life.
While there are several ways to monetize your application program, here are a few of the ways that are certain to have huge an impact during 2017.
Subscription-based models
Right now both Google and Apple and Google are encouraging subscription-based models. Businesses can utilize these in a variety of ways depending on their app’s functionality and target demographic. Subscriptions are becoming increasingly more popular and currently account for around 15% of all app store revenue.
Subscription-based models are one of the best profit models for mobile apps. By creating a subscription-based model, you can generate ongoing revenue. You are most likely familiar with subscription based services such as Spotify.
Subscription-based models also have the benefit of creating higher revenue per user than apps that follow other models. In a study by VisionMobile, they found that apps that use subscription-based models earn 2-3 times more per user than apps that utilize advertising or charge per download. Subscription-based models also earn 1.5 times more per user than apps monetized by in-app purchases.
We suggest offering a free or discounted trial to users to let users try out your app and help build your user base.
Don’t count out in-app advertising or freemium monetization models
In-app advertising and the freemium model are the two most popular monetization strategies for non-game mobile apps. Currently they account for the bulk of app revenue. Both of these monetization models appeal to users because they don’t require an up-front payment. They are both nice for app publishers because they create ongoing revenue.
With advancements in the quality of ad programs, in-app advertising has become more accepted. This is because many app publishers will apply intelligence to their ad programs and deliver advertising that is targeted, relevant and useful.
Meanwhile, freemium models are becoming increasingly more popular as they allow users to try an app before they pay. This gives publishers an opportunity to capture the interest of users, build trust and engage users before users need to pay.
There are several ways in which you can utilize the freemium model for your app. One popular model involves giving users limited access or usage and then charging when users hit a certain level of storage or usage is met or exceeded. Other options are offering users a free trial period or a limited version for free but charging for extra services or capabilities. Finally, you can combine the two of these and allow users to pay to remove ads.