The top strategies in 2022 to monetise your app – What you need to know to profit
Bring in consistent income month after month — that’s the goal right?
Well, today we’re going to tell you exactly what the best options are so you can start making money through your app in 2022. This guide will help you navigate the world of app monetisation to ensure you make the best and most profitable decision.
Monetise Your App
Predictable income coming in like clockwork — It’s being done by thousands of business owners and entrepreneurs around the world.
In fact, a recent report has projected that users will spend $380 billion through apps in 2022 alone and getting a slice of that pie isn’t out of reach — but before you start, you need to know exactly what strategies will work best for your app.
Let’s get into it.
The Original Monetisation Strategy
In the early days, paid apps (where users pay to download the app) were the most profitable option.
Nowadays, there are many apps offering similar services, so to successfully implement the paid model is very difficult. Since January 2022, only 3% of apps are paid apps.
For start ups and new businesses getting their feet wet, there are more profitable strategies that can be employed, more on that shortly…
For now, just note that to successfully create revenue through the paid app model, your app must offer very specific and unique value.
The strategy of in-app advertising is simply that — advertising to users while they are on your app.
With the in-app advertising model, the app delivers third-party advertisements for other companies and can generate revenue with every click or impression.
Apps are an excellent way to collect huge amounts of data which can be used to curate advertisements for your user base — making for extremely effective advertising. This is one of the safest and easiest to make money through your app.
This is currently the second most popular monetisation strategy.
With the Freemium model, users are free to download the app and are then offered additional features, exclusive content, subscriptions or digital goods — these are known as in-app purchases (IAPs).
The app is free to use and provides basic features, but the IAPs offer a better user experience. The revenue is earned every time a user purchases the IAP.
Freemium apps are usually service orientated and are often updated to attract or retain users.
Great examples of successful Freemium apps include Spotify, TikTok, Strava and Tinder.
A Little More on In-App Purchases
In-app purchases (IAPs) usually enhance the user experience in some way or another. The type of in-app purchase is usually dictated by the type of app.
There are four main IAPs, including consumables, non-consumables, auto-renewable and non-renewing subscriptions. This can get technical, so for further details check out our article Four IAP Types.
But for now, a brief example of some common variations:
- Exclusive access or additional content — this is popular amongst fitness apps.
- Upgrades to the app — usually found in utility apps.
- Items or unlocks — these are common in gaming apps.
We’ve given a brief run down of the most popular monetisation strategies. As you can see, making money from your app can be done — you just need to choose the right model that will work best with your app and user base.
Hopefully this information has proved helpful and informative. For a more in depth analysis of the pros and cons of each model — and which one would suit your business best — check out our article App Monetisation Models – How to Pick the Right One.
If you have any questions or you think we have missed your favourite model, feel free to leave a comment below.
If you would like to learn more directly from our team, contact us and we will be happy to provide a free consultation.