If you’ve ever considered app development as a full-time, you know that app monetization is the crucial element in turning smartphone apps into a successful career. Whether you’re developing a free-to-download app or a paid app, choosing the right app monetization strategy that fits your users while ensuring your app is profitable is vital.
Mobile App Statistics
As of February 2024, there are 8.93 million smartphone apps globally, with over 3.5 million apps in the Google Play Store and more than 1.64 million in the Apple App Store.
As the average person has more than 40 apps installed on their smartphones, mobile apps are expected to generate more than $613 billion in revenue by 2025.
Understanding App Monetization
App monetization, whether the app is created for a laptop, a smartphone, or a tablet, is the process of generating a regular stream of income to maintain your app and pay yourself or your staff.
There are many ways to monetize your app, some of which can be combined to maximize your profits. Which app monetization model you choose will depend on your needs, the specificity of your app, and, most importantly, your target audience.
App Monetization Strategies
Let’s briefly overview the most commonly used app monetization strategies, including advertisements, a subscription service, in-app purchases, and a software development kit.
A Software Development Kit (SDK)
A software development kit, called SDK for short, is a set of pre-written code that provides your app with functionality that app developers don’t have to write themselves. Mobile SDKs offer a wide variety of functionality, including making more money for you through app monetization.
SDKs are a hassle-free way to make money as an app developer. An SDK enables you to receive extra monetization through public data sharing. Some companies have developed their SDK to run in the background of your app without interrupting the user or the app’s operations.
SDKs like the one Honeygain offers are great if you don’t want to overload your app with in-app advertisements, as the Honeygain SDK doesn’t need to show ads to generate money for you.
In-App Purchases (IAPS)
The last time you downloaded an app, you probably noticed that some of the app’s functionalities were hidden behind a paywall. Those paywalls are usually known as in-app purchases, meaning you have to pay money to access a feature in your app.
If you’ve developed a game, in-app purchases are the easiest route for you to go with app monetization. You can enable in-app purchases for extra lives for the character, unlock new levels, change the character’s appearance, and much more.
Non-game apps can also bring in revenue through in-app purchases. You could invite your users to buy an ad-free version of your app or access additional features like offline availability. However, these are usually one-time purchases, and if you’re looking for a consistent income stream, you should consider other app monetization options.
Subscriptions
Subscription services are one of the most popular app monetization strategies. Subscriptions allow your paying app users to access a different in-app experience than those using your app’s free version.
When you’re setting up a subscription package to monetize your mobile app, you don’t have to choose between an all-or-nothing approach to monetization. Depending on what your app offers to your user base, it may be a better idea to set up multiple subscription packages with different levels of value. For example, you may want to offer a free service, a basic subscription, and a premium subscription for different types of users.
Thousands of apps in every app store have a subscription service, including technology giants like Spotify, Netflix, YouTube, Notion, Tinder, Flo, and countless others. Of course, you should still offer a free version of your app to those unwilling to pay. But in this case, you can use advertisements for outside monetization to ensure each user still brings you money.
Advertisements
The last app monetization strategy is the most widely used. Advertisements are everywhere these days, from magazines to billboards and radio shows. Your app can also include a wide range of ads to generate a profit for you and your team.
You can choose from banner ads, native ads, interstitial ads, video ads, rewarded video ads, and playable ads. Each ad variation has its pros and cons, but any app out there is guaranteed to find the ad type that fits its operations most.
Games usually feature banner ads at the top or bottom of the screen or interstitial ads that take up someone’s entire screen between game levels. Apps like Facebook or Instagram feature mostly native ads, the content of which fits with what a user is engaging in within the app.
Monetize Your App Today
App monetization doesn’t have to be a long and complicated process. When you’re done developing your app, don’t be afraid to experiment with different app monetization strategies and launch your successful career today!
