Mobile App Monetization Strategies, Five Models of Building

App Monetization Strategy

It’s all about the apps on smartphones. So, what is the best way to make the most profit off of your application? Let’s go inside the Android factory and find out the top ways to build profitable applications.

The top monetary models include in-app ads, pay per download, freemium, notifications and paid apps. Depending on your application there is a certain model that should be used. Say your app is a game with a large marketing budget, a paid app would be the right way to go. A paid app is an app that costs money, between $0.99 to $200 and 80% of paid applications are downloaded 100 times. Another app that should be a paid app is if it is a unique tool or service.

Pay per download is another model to base your profitable application on. Pay per download uses out-of-app search access points and have fixed payments for the developer. The user opts in to get additional search access points. The apps that should be pay per download would be if ads detract from the UI/UX, games that don’t have a large marketing budget or high percentage of active users and if the game doesn’t use virtual currency. You can also use pay per download if there is a natural spot for banners.

Then you have notifications. Notifications are advertisements placed in the notification tray of the device. These often offer higher (though fluctuating) CPM’S and the developer can set how many ads are sent. The best use of notifications are when there isn’t a natural spot for banners. Also, you have freemiums, which basic gameplay is free, but premium items and services cost extra. This model is best used when the application is a game that uses virtual currency.

Lastly we have in-app ads. In-app ads are advertisements displayed inside the application. There are dozens of ad networks and revenue that is generated through in-app ad impressions. The best time to use this model with your application is if there is a natural spot for banners and if it is a game that does not use virtual currency.

When developing a profitable application, keep in mind to plan and figure out a monetization strategy during development, try out a few different models or ad networks and apply the best fitting model to your app. Find the best model for your app and start earning big.

Monetization Models [Infographic]
© 2012 StartApp

About the Author

Jay Castillo
Environmentalist. Consumer Tech Journalist. Science Explorer. And, a dreamer. I've been contributing informative news content since 2010. Follow me on all socials!

1 Comment on "Mobile App Monetization Strategies, Five Models of Building"

  1. Native mobile apps as well as HTML5 web apps can be created without programming skills at Snappii. Non-programmers can create apps in hours here. Also it is a good way to outsource app development quickly and cost-effectively.

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