April 24, 2024

Top Mobile App Monetization Strategies in 2024

Discover effective strategies to increase your mobile app monetization. Boost your app's monetization and revenue metrics significantly.

Ananya Vairavarajan

Mobile app monetization is the process of generating revenue from mobile applications. In the ever-evolving landscape of mobile apps, staying ahead of the monetization game is a paramount challenge for B2C mobile app companies.

Many new array of ingenious strategies has emerged, reshaping the way apps generate revenue and engage users. Let's explore them!

Why mobile app monetization is important?

The dramatic surge in the availability of free apps through app stores over the past 15 years has turned mobile app monetization into a crucial consideration for app owners on a global scale.

In 2009, approximately 77% of apps in the iOS App Store were paid downloads, but today, only about 10% of apps require an upfront payment. The proportion is slightly higher on the Google Play store, where paid apps make up around 31% of the mobile app offerings.

This transition toward free apps has compelled app developers to completely rethink how they generate revenue from their creations.

To ensure a steady growth in revenue for their apps while upholding an exceptional user experience, app developers have the option to embrace one of the subsequent app monetization models.

Top 6 mobile app monetization strategies

In-app messages

In-app messages emerge as a game-changing strategy to tap into your existing user base. These messages also highlight key monetization features, using tooltips, spotlights, blinkers, and coachmarks to direct user attention. For example, real-time offers via in-app messages effortlessly convert uncertain users into enthusiastic participants

But there's more – in-app messages also nurture user understanding, guiding them from casual users to loyal paying customers. They can even re-engage users at monetization crossroads with instant coupon codes and compelling offers, boosting conversion rates.

For instance, Tokopedia, a prominent e-commerce company in Indonesia, has implemented a floating action button to showcase these deals to their users while the users browse the app.

Tokopedia in-app floater

In-app advertisements

Monetizing your app through advertisements or highlighting the monetization feature through the ads is often a swift and effective strategy. Various mobile app ad formats are available, each catering to different preferences:

  1. Banner Ads: These ads, delivered by ad servers, appear in specific app locations. They can be personalized based on user data.
  2. Video Ads: Display video ads within your app, including in-stream and out-stream options.
  3. Native Ads: Designed to seamlessly integrate into your app's design, these ads resemble regular app content.
  4. Interstitial Ads: Full-screen ads appear between app phases, like before the video loads.
  5. Rewarded Ads: Users receive rewards (like an extra try in a game) for viewing these ads.
  6. Gamified Ads: Interactive mini-game ads that engage users.

These ads can be embedded in different UI elements like tooltips, PiP videos, spotlights, and modals according to the app’s native design and theme. Ex: Spotify uses a modal to highlight the premium offering which is a type of in-app advertising.

In-app advertisements in Spotify

In-app purchases

While users may not be required to initially buy your app, you can still create revenue by selling items within the app. This approach is a prevalent method of monetization, not only for brands with phsical products but also for various other contexts.

You can tap into the concept of in-app purchases by introducing fresh products, which could be connected to or carry your app's branding. Additionally, you have the option to sell virtual goods like in-app currency, additional lives, or unique in-game items, even if they are intangible.

For instance, in the mobile app game Candy Crush Saga, a modal is displayed to buy additional gold bars to purchase power-ups required for completing difficult level

In-app purchase in Candy Crush

Cashback offers for premium purchases

Offering a cashback deal for in-app premium purchases might sound too good to be true, but it's a fantastic opportunity. Essentially, it's like a discount that benefits the company in the long term.

With this offer, users get back a portion of what they spend on premium purchases, either as store credit or points in their app accounts. These rewards can only be used for future purchases within the same app. This strategy creates a win-win situation: users are enticed to keep coming back for more great purchases, leading to long-term engagement.

This approach has already been adopted by major players like Paytm, Freecharge, MobiKwik, Google Pay, and PhonePe.

SMS marketing

Though regarded as somewhat old-fashioned in 2023, SMS marketing can still be a potent tool when infused with flair, intelligence, and a hint of wit. This approach enables you to effortlessly connect with users, extending discounts on in-app purchases or premium subscriptions.

Prioritizing explicit user consent for data usage is paramount. Deliberate over the message's length and timing—nobody wishes to digest a lengthy saga about your app during dinner hours.

Email lists

Utilizing email marketing campaigns can greatly enhance customer engagement and boost your ROI. With the infrequency of email address changes, maintaining a prominent presence in a customer's inbox can lead them to think of your business first when seeking relevant products or services. Consistent email communication ensures that your content reaches users and encourages their active participation. A strategic approach includes incorporating an email subscription form within your app to gather addresses effectively.

Shown below is how Uber nudges its users through email to come back to their app and book a ride whenever a need arises.

Email campaign

Plotline helps B2C growth and marketing teams improve in-app monetization

At Plotline, we help you build and publish in-app messaging flows with zero coding, saving your developers time that can be better spent on other aspects of the product.

Using Plotline, growth and marketing teams can improve their in-app revenue metrics by creating and deploying in-app messages that match your design theme to a targeted user cohort.

Join us in our journey towards providing users with native in-app experiences and improving mobile app monetization and revenue metrics.

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Join companies like ShareChat, Meesho, Jupiter, Jar, Khatabook and others that use Plotline to run in-app engagement and boost activation, retention and monetization.

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