In a few earlier posts, we discussed app monetization in our article ‘How To Generate Revenue From Your Free App’ Also, in our article, ‘Survive The App Marketplace By Effectively Monetizing Your Free App’, we detailed the specifics of each app monetization strategy and provided several examples. Click here for a quick refresher.
One of the top four strategies for successful app monetization is integrating advertisements within the mobile application. Selling ad space is an extremely effective way to generate revenue. Banner advertising within mobile applications resembles classic banner advertisements on websites. Due to this familiarity many developers and marketing strategists utilize the following advertising model:
- Invest in marketing and advertising to create awareness
- Stimulate discovery
- Drive downloads
- Let other companies place ads within your app to generate revenue
While the marketing strategy outlined above has proven effective, companies are now being pushed to think critically about the development of monetization strategies for their mobile applications. Diligent planning while creating a sustainable and effective mobile marketing strategy is a must. To begin with, the mobile application must be properly developed and serve the needs of its users. One of the most prominent features of a successful mobile application is that it fulfills the user’s needs. It is also important that these needs are not being fulfilled by an already existing app or other type of technology.
Another important aspect to the overall mobile marketing strategy is diversifying the revenue stream. One strategy cannot solve all revenue generation problems. Along with selling ad space, companies need to consider in-app purchases, subscriptions and app sponsorships.
Regardless of the secondary revenue generator chosen, the following list outlines mobile marketing strategies that can make an application successful:
- Try to achieve a critical mass with your app that keeps drawing people back time and time again. This will make the app more appealing to advertisers.
- Identify the app’s target audience in order to determine the type of advertisers you want to attract.
- Keep the cost of attracting downloads and advertisers below the amount of revenue the app is forecasted to generate.
- Develop and test the app’s marketing options and utilize the options that hold the best promise of helping the app “go viral” thus increasing its appeal to advertisers.
Once critical mass is achieved, quantify your audience via downloads, demographics, banner ad click-through rates and other user statistics to further increase the appeal of your company’s mobile app. In order to continue to package your mobile application as a product that appeals to advertisers demonstrate the power and reach of mobile technology by highlighting mobile activity and sales.
Lastly, get linked up with a good ad network, like Google Adwords, Millenial Media or Adfonic. Ad networks help companies find advertisers. Mobile ad networks get a cut of the application’s revenue, but they eliminate the hassle of pounding the pavement that is involved with looking for new advertisers.
Effective app monetization isn’t rocket science, although it does require thoughtful planning and calculated execution. Ad-supported mobile apps can be very successful. By growing your audience, tracking user statistics, employing at least two app monetization strategies, and joining a good ad network, your revenue stream is sure to grow. All a company needs to do is keep development costs, and the cost of attracting users and advertisers below the forecasted app revenue stream.