The past years put huge emphasis on the tremendous growth in the mobile world and in the years to come this won’t change.
Mobile apps can provide exciting opportunities and challenges to new and old developers. This blog post is part of a monetization series, in which we will cover aspects of monetization and get into more detail with regards to the topics covered below. Let’s start with the basics. In the next few lines I will go through all the different app monetization methods, and explain them briefly for the app marketing rookie.
Android vs. iOS
Monetization is different between iOS and Android. The latter tends to monetize more with in-app ads while iOS tends to focus on in-app purchases. When launching your app, make sure to choose the operating system which fits best to your monetizing needs according to variables such as target audience, download rate per OS, GEO, etc.
Incent Vs. non-incent
There are many pros and cons to each and it is important to find a balance between the two. As a rule of thumb we would say, if promoting a new app, start with running both incent and non-incent campaigns at high volumes to gain a high ranking in the application stores. At the early stages of the campaign there are clear advantages of running incentivized campaigns, you get a lot of new users which raises your ranking in the stores for example. Although these users’ quality might be considered lower, the advertiser does actually gain some highly engaged users from incent campaigns and at a lower cost. For example organic users gained through the high ranking. Now the users need to get an incentive to stay on the app and engage, one example could be a 24 hour discount on in-app purchases.
Non incentivized campaigns are good to run as sustain campaigns. The users might be harder to obtain, but they offer high user value. These users might download your app by seeing a banner or video that catches their eye.
Whether incent or non-incent, the highest quality users are organic users, users who see your app at the top of the stores and download it because they are interested in its content or users that are brought through other users (by shares, recommendations etc). These users will most likely engage highly.
Freemium vs. Paid app
Looking at the list of the most downloaded apps, free apps lead at almost every category. But how can free apps be profitable? The answer is IAA (In-App Advertising) and IAP (In-App Purchases).
All the top freemium apps are using one or both of these methods for monetization. Let’s elaborate:
A couple of extra tips regarding monetization that we’ve learned through collaboration with clients:
Apps are here to stay, we have them on our phones and they’re already part of wearable devices. We’re spending more time engaging with our phones and you want to make sure that users are engaging with your app. Test all operating systems, test all types of monetization and find where you can be most profitable. Most importantly develop the app with the user in mind if your product is good and the users are engaged the monetization possibilities are plenty.
In our next monetization blog post, we will explore the difference between Android and iOS and their advantages.
Feel free to contact us to learn more on how to promote and monetize your app.
Set up a meeting with our experts at Casual Connect Asia in Singapore. May 19th to 21st.
Nadiv Schorer is a Mobile Advertising Account Manager at dmg