How to Monetize Your Mobile App the Right Way

Having a detailed mobile app monetization strategy is critical to analyzing the verticals of your app's success. This well-articulated article will delve deep into the multiple methods that are impactful to make money from your newly launched application by talking about mobile app monetization strategies, including advertising, freemium, and subscription models. The app industry in recent years has seen a drastic change due to evolving macroeconomics along with a major shift in digital privacy lines, leaving users to focus more on data privacy. This eventually impacts stricter provisions, directly impacting mobile app monetization strategies, and Spiral Mantra’s article (USA mobile app development company) is going to describe all the key aspects that push the process to make money from your newly launched application.

Beyond the PlayStore, How Do Apps Make Money?

The app can make money using a variety of methods. Free apps are the most profitable of all! But how does it work? How can it generate thousands or millions of dollars? This diagram shows that global app sales are expected to exceed US$150 billion in 2028.
The answer depends on the decriminalization strategies. App monetization is exactly what the name suggests: to make money for your app (in other words, so that you can make it monetizable). This fee is the most obvious way to monetize your app ahead of time, but there are many other effective strategies to choose from.
But before you start your business, you must first need to understand the types of app monetization platforms.
The first one begins with  

Execute the Strategy of In-app Purchases

IAPs allow users to transact their money to unlock additional functionality/ features/ benefits within an app. These are the most prominent and effective legalized approaches, demonstrating a 48.2% increase in earnings by the end of 2024.  
Additionally, the process falls into two major types, i.e.,.

1. One-time in-app purchases: Where users need to pay just once and can be described under consumables and non-consumables factors.

Consumables: For instance, consumables can come with a lifespan, and once they are utilized, one cannot access them further. Consider taking an example with a gamer where she purchased a lifeline by making a transaction, and when she redeems the extra life, her purchased lifeline expires.
Non-consumables: Where users can access infinitely without worrying about their lifespan. Again, considering the gamer example, she can purchase a “level” and utilize it infinitely without worrying about its expiration date.  

2. In-app subscriptions: This is a new marketing tactic, allowing users to pay a fixed amount either on a subscription cycle - monthly, weekly, or yearly basis. Spotify, being the best example, uses a pro-rata model by keeping up to 30% of the monthly subscription and ad revenue, and the rest would be distributed to its added artists based on their total streams.

Besides this, in-app subscriptions have two different forms, i.e., auto-renewable and non-renewable.

The Freemium Model Never Lets You Down 

Another in our row is freemium (a mix of free + premium features), allowing businesses to generate a hefty amount of revenue. The feature cycle of these types of applications allows users to download and access the free version; however, a user needs to pay to unveil premium features. Besides this, major companies also offer a “free trial period” for one month and later charge every month.
We, being the top mobile app development company, have analyzed that the adoption of the freemium model has risen in these significant years, as the majority of companies have started developing apps that offer free or freemium versions, and Spotify and Subway Surfers would be the ideal names in this industry.     

Paid Subscription Models to Make a Payment Upfront

Netflix and Amazon Prime, two popular names in this category, allow users to select any of their available plans to stream and access global content.
Both apps support feature-rich streams with diverse genre content to deliver splendid customer experiences. Furthermore, these applications also support free trials before charging users for an actual subscription plan.
The paid subscription model can be enormously effective in retaining long-term users, specifically if you provide the right value at the right price.

In-app advertising and Sponsorships

In-app advertising and sponsorships have come a long way! Right from targeting simple banner ads to covering full screens, this model apprehends diverse revenue tiers. Based on the monthly visits, these apps follow this approach to push sponsorship content and video advertisements on the platform to generate revenue upfront.
Users have diverse requirements, so why not cater to those needs? Spiral Mantra, an astonishing app development company, provides native and cross-platform solutions by incorporating the latest AI ML models.