How Do Free Apps Make Money: Best Monetization Strategies

We have looked through app monetization strategies that definitely will generate income. There is a slight gap between how app developers and app consumers see the value and revenue generation. Hence, app developers should examine how to earn money from apps from different angles. Try to examine the possibilities of a mixed monetization model – not only by using ads and in-app purchases, but by seeking to enhance user experience based on target audience needs. Free mobile apps have a more significant market share compared with paid apps.

Add information about updated in-app events and promotions, or reach out to new users. Your main competitors have probably already updated their product descriptions. Check out their app pages and think about how you could improve your app description. For example, if you have 50,000 banner ads displayed per day, your http://edu-otzyv.ru/view_uz.php?id=3967 average number of clicks is 750, while the revenue comes out to $75 (750 x $0.10). Disadvantage of the crowdfunding model
These are thousands of applicants and can become very difficult to be crowdfunded. It is necessary to show the value of the product and that idea that is worth taking a risk and investing.

Affiliate marketing

What can help you choose the best market is to launch MVP app. Wondering how to make an app like Tinder or delivery service like Glovo, consider that MVP is a cheap prototype which you give to the public in order to collect feedbacks. Analyzing this feedback you see what the age bracket and occupation is and other information about the most active users.

Another monetization way to make money from free apps is crowdfunding, which is new in the industry. This model involves charging based on the number of ad interactions or video views. Smartphone game development company BrightHouse successfully increased its app earning by 130% through cost per view networks.

Freemium vs. paid apps

While creating free mobile apps, a product owner should think about the free app monetization strategy beforehand to earn revenue. It’s possible to combine different monetization strategies and then to choose the profitable one. Integrate a way to earn money from free app as smoothly as possible.

In 2021, users spent 6 billion US dollars on the top subscription apps through the App Store, compared to 2.5 billion US dollars in the Google Play Store. Let’s learn the complete monetization strategy by going through this guide. Simultaneously, spending on user acquisition for subscription apps has decreased by 30% and 41%, respectively.

Premium features

Moreover, improved engagement is another core reason for in-app purchases. To ease the integration of this revenue model, Apple is paying extra attention and making significant changes in how app subscription models work. In the present model, Apple will maintain its current 70/30 revenue split for the first year of subscription. After one year, the new 85/15 revenue share will automatically be implemented. This is the most effective advertising model when we talk about in-app ad integration. Online users watch them in exchange for points, lives, or virtual goods.

• You can get paid every time an ad is displayed (per impression), per click on the ad, and when a user installs the advertised app.
• The biggest advantage is for the top branded apps, while for a created MVP project and newly-launched free apps to make money is less powerful.
• Get to know what inspires potential app users and/or irritates them.
• This business model takes advantage of the existing app user base, generates revenue through product sales, and builds customer loyalty.
• For example, gamers would patiently click on 30 seconds of rewarded video ads to get freebies in the game.

Ads of this type usually appear when users open or close an application. After watching ads for a predefined period, they have to skip them or check the offering. Either way, those ads often irritate users as they don’t have a choice to ignore them without any further action. Usually, such native ads don’t create a distraction for users, ensuring a higher conversion level.

Today, the average owner of a mobile device uses 7-8 applications daily. At the same time, only 5-10% of mobile app users are ready to buy a paid app, and around 98% of profit and downloads come from free mobile apps. The vast majority of mobile app users prefer to use free apps, and this number is continually rising. In the first half of 2019, the number of free app downloads in Google Play increased by 16,4% and raised $41,9 billion in revenue. In the freemium model, users get the basic features of the app for free but then have the option to access advanced premium features at an extra cost.