How free apps can make money more than paid ones
Note : John Manujian is the co-founder and CEO at 140 Proof , a venture start-up associated with social media advertising.
Apps for Apple Store and Google Play can be very profitable for developers. However, one of the main tasks for developers is payback. Consider a few monetization strategies . Often under the "monetization strategy" mean "how to make the application brings money."
Today, it is quite difficult for applications to stand out among the rest and become noticed by users, not to mention the desire to buy this application. People increasingly prefer completely free apps or freeware with an advertising banner. But until now, developers are not sure when answering the question “make the application free or paid.” When the developer still wants to make a profit from advertising, one of the main questions is the choice of the right way to monetize.
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Four monetization strategies for applications? Actually, there are two
Developers have several options for monetizing their applications. And each option has its limitations and pitfalls.
Consider a few points that developers should pay attention to when answering the question “How do I monetize my application?”:
- Does it seem to you that the application will be so useful that users will use it often?
- How much will people be willing to pay "ahead" for your application?
- How do competitors from your niche monetize their apps? How successful were their strategies?
Application markets are boiling up, developers are sharing experiences on the monetization of their creations. Most will say that there are four basic ways to monetize:
- Paid application. Sale application in the store.
- Free app with a paid subscription
- Free app with in-app purchases
- Free with ads inside
But the real choice is as follows: receive money from users or from advertisers?
Who pays more for applications: users or advertisers? (aka What strategy of monetization brings more money: "paid" or "free"?)
When it comes to users, the vast majority of Android and iOS users do not really want to pay - be it for apps, subscriptions, or add-ons. Therefore, mobile developers are more inclined to experiment with embedding advertising in applications. And advertisers MUCH more willing to pay developers for their work. After all, as well as developers, advertisers also want to sell their product.
How much can advertising bring to the developer?
Advertising growth is growing in all types of applications (web, mobile, desktop). Most analysts decided to measure turnover only in the field of mobile applications, as now most of the created applications are mobile. Advertising revenues in the field of mobile applications increased by half in 2011 and amounted to 1.6 billion dollars. Source of
The future of application monetization obviously lies in the advertising model. A recent study by scientists at Cambridge University found that 73% of all applications on Google Play are free and 80% of them rely on monetization through the embedding of an advertising banner. And in terms of the number of downloads, naturally, freebies are much more popular than paid ones. Only 20% of paid applications will be downloaded more than 100 times, and only 0.2% of paid applications will be downloaded more than 10,000 times. On the other hand, 20% of free applications are downloaded more than 10,000 or more times.
Using multiple monetization strategies simultaneously
While free applications reach most users, for whom a fee is a very painful question and almost never buy applications, there are many users who simply don’t carry ads and are looking for a paid version (sometimes a Pro version) of their favorite applications.
Developers can satisfy both types of users with the following approach: create both paid and free versions of their applications. This approach is extremely popular among major publishers.
Before moving on, it is always necessary to explore all the options associated with advertising when you launch a new application. Now there are many advertisers who specialize in advertising in mobile applications. Developers can choose the conditions for making a profit: a fee for displaying an ad or a fee per click on an advertising banner. And what's more, you should always always put in the plan the embedding of this banner in your application.
And most importantly, make sure that you consider all the changes in the design associated with the presence of an advertising banner. We all want to organically meet the advertisement in the application, and not annoy everyone with its presence.
List of mobile advertising sites:
Source: https://habr.com/ru/post/150422/
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