How Do Free Apps Make Money in 2020?
Are you an inspiring entrepreneur who is on the verge of learning how free apps make money? Then, look no further you are in the right place. Mobile app developments need huge investments. Thus it is crucial to learn ways of capitalizing on the free App, before initiating the development process. Thereafter, comes in the monetization strategies and that way you will be able to make money. WordPress Website Design Company is the best in designing App that will be attractive to the eyes of the consumers. If you are planning to million dollars through your free apps, then I have addressed several strategies that you should go by.
In this article, I have shared the 9 nine proven monetization strategies that will work for you in 2020 and the future.
Advertising
Advertisement is one of the most comfortable and familiar app monetization strategies. It is easier to earn money from advertisement free mobile apps. Over 67% of all the digital advertisements made go towards mobile apps according to the reports by eMarketer. This is because it is the first mobile App offering a dynamic environment in which the ads can seamlessly get integrated within the app content. Advertisement in mobile apps seeks relevant suggestions rather than unwelcome distractions. It helps increase the chances of the App’s experience. While at it, it is essential to choose the correct advertisement format to ensure that the advertisement does not affect a user’s experience when using the App. There are two major categories: videos and display advertisements. Don't use plagiarised sources.Get your custom essay just from $11/page
- The video advertisement entails short promotional videos that effectively deliver the brand’s messages to all the users. The four main video advertisements formats that you should consider integrating include; interstitial video Ads, Rewarded video Ads, Out stream video Ads, and the in-stream pre-roll video Ad.
- On the other hand, display ads refer to the static or the GIF image Ads the help the brands to broaden reach within the in-app environment. Also, in this one are four formats, including the interstitial display Ad, Banner display Ad, Medium Rectangle Ad, and the Native display Ad.
All the mentioned practices and Ads are the best for the in-App advertisement through which you can begin making money with the Apps, especially in a case where they are used correctly.
In-app purchase
This is another common monetization strategy used by the free App to make money. As its name suggests, it allows the application providers to sell their various virtual items in the likes of extra bonuses, currency, premium content, or virtual goods within the App. The free App is known to generate the highest revenues, and this is one of the models that forecast to continue dominating in the future. With that said, there are different categories of the in-app purchase model inclusive of subscription, the consumable, and the non-consumable models.
Subscription offers an in-app subscription where its users either unlock premium content for a certain period in the likes of the insider’s new stories.
Consumable model is the digital product that can be bought and used within the application.
The non-consumable model is a feature that the users buy with unlimited usage in the likes of nutrition tracker to know your diet.
The use of any of the three types of in-app models helps to begin earning money from your free application.
Freemium model
It is yet another app that can be downloaded, has limited features, and can be used free of charge. If the users find it worth paying for the App, they can then get access to all its functionalities by purchasing the pro version of freemium free App. However, you can still implement a lot with this strategy without having extra features to offer. For example, you can integrate various Ads in the free App, and if your users enjoy, they end up buying the pro version of your mobile application. An excellent example of a freemium strategy is the MX player, a video player app that has the free version that often shows videos and displays banner ads.
Referral marketing
This strategy entails promoting a third-party service or product for that matter. It happens because, being the free app owner, you can partner with any brand by selling the affiliate services and products based on their different models. There are three types of referral marketing models that you can employ to earn money through free apps.
Cost per view– This denotes the number of views an affiliate ad acquires on your free mobile App. This can be achieved by the use of the interstitial video ad format to show the affiliate ads at different times.
Cost per click– this regards the number of clicks displayed ad gets in your free application. You can earn a fixed amount of money every time a user clicks on the displayed ad. The referral ad can be either a video or a display ad. The two most popular platforms that partners with brands and earns per every click are the Admob and the Adfonic.
Cost per acquisition– through the use of the referral marketing model, you can promote other applications through the pop-ups videos and display ads. For instance, the clicks on the advertisements and installs ad apps will earn a fixed amount of money. There are various affiliates that you can join to begin making money.
Conclusion
There are several ways to monetize an app apart from the discussed ideas. If you decide to go ahead, ensure there is only one thing to keep in mind, which is to avoid overusing the App mentioned above monetization models. It is understandable that after investing a lot of money, time, and resources into the development of your application, it can be tempting to try multiple monetization strategies. However, always remember not to make your App inconvenient for the users. Always remember not to make your App inconvenient to use for the users. Your application will bring profits when users use your application, but if they are uncomfortable, they will uninstall your App. Therefore, it is essential to deliver great user-experience without having to worry about money in the beginning until it is fully established.