How To Effectively Monetize Your App?
Many startups aim to develop a web and mobile app with intriguing features. How many times they utilize the data available in the market and in the app to create a monetization strategy that helps them carve a niche. As an experienced app development company, we help understand how to draft the right monetization strategy and what are the key considerations.
How to decide on a pricing model?
Learn about your target audience - Identifying the target audience helps in creating an effective app monetization plan. You can study the audience in terms of their characteristics, age group, preferences, financial status, and much more. These individuals are the potential users who are most likely to make a purchase.
Analyze your competitors - List down all the USPs of the competition product, what is their TG, which market are they focusing upon, how are they monetizing, what are they doing right, and where does the scope lie for you. Be clear about audience expectations in terms of the willingness to pay for accessing features of an application.
Know your product - Mark the most engaging and likable feature on the app where the users are spending most of their time. Be clear on whether the app should be free to download or have a subscription value. If free, which feature to be monetized, which feature will make the users addicted to the app so that they subscribe for premium packages.
List what all the user is getting from the app in terms of experience and value?
Decide upon which feature is providing maximum user engagement and retention?
Rank the elements in terms of priority to create a pricing model
Study the market and competition for a clear understanding of what the customer is willing to pay.
App monetization model
Freemium - Very rarely a user is willing to pay for downloading an app; that's why many apps nowadays are free to download but have limited features and functionalities. Revenue gets generated by in-app purchase opportunities created in the app. Users pay to access premium functionalities of the app like Tinder offers its audience for premium experience packages like Tinder gold and Tinder plus.
Another way to generate revenue is by offering all the functionalities but only for a limited period. Users get familiar with the app and are later willing to pay for continuous usage.
Apps also monetize by playing on unhindered user- experience, by paying small charges, users can get an ad-free experience.
Ad-based monetization - This model gets adopted by maximum mobile and web app development companies. Adv in various formats get published like banners, pop-ups, podcasts, native articles, videos. Banners ad have high visibility but tend to hamper user experiences. Native articles integrate seamlessly with the content available on the app and do not hinder user experience. Digital marketing agencies provide a lot of valuable insights over ad performance, like CTR and CPM, to help you use a strategy-based model and get better ROI.
The app industry has an ever-increasing demand but is highly competitive. To survive and be profitable, choosing the right pricing strategy for your web and mobile app development is essential. You may refer to the article for deep insights and understanding the process step by step. How to Monetize the app and decide on pricing strategy?
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