1. Freemium strategy.
A good option for a free
application, but with the possibility of built-in purchases or additional fees
for the use of certain features.
Buying tips, replenishing energy,
buying a shield are examples of built-in purchases in games. The user determines
to spend on passing the level a few days or buy a hint. The life cycle of
freemium-games is within one year. Therefore, developers have to constantly
look for ways to keep users in the game. In addition, built-in purchases in
games today reduce the developer's profit, and this is a worrying sign.
Access for a fee to additional
application features. Skype is the best example of a freemium model in instant
messengers. The user receives a free high-quality product, but only 8% of users
are willing to buy and use another service and save on phone calls. On a
similar principle running Evernote and Dropbox. One application and two
services. The question is, will the user prefer a second product?
2. Trial.
A successful strategy that allows
to use the application for free for a limited amount of time. The trial time is
set by the developer, usually from 7 to 60 days. After the application will be
available only for payment.
A great marketing technique is to
give the user the opportunity to use the application, show what it is great,
and then announce the price for further use. Some developers abandon the
freemium model in favor of the trial version of the application.
3. Advertising.
Advertising in mobile applications
is actively gaining momentum. Users are sometimes not ready to pay for a
complete lack of advertising, so they have to deal with it even in the
applications of their smartphone or tablet.
This fact allows developers to
receive tangible profits from advertising in mobile applications. The condition
for the success of this strategy is a mass audience and a huge market.
4. Subscription (Subscribe, SaaS).
Regular payment for the use of the
service and access for the time of subscription to the resources of the
application: music services, movies, e-books, news resources and other content.
If the content is interesting, subscription can work, the main thing is to
choose the optimal and satisfying subscriber cost of the service.
5. Premium paid application
User pay for the installation of
the application a certain amount in the hope of solving all their problems. They
expect to receive a very high-quality product, which in a few clicks will bring
clarity and simplicity. According to statistics, 10% of profit falls on paid
installations. Examples are paid games, Pro versions of some free applications
(calendars, watches) or e-books (fairy tales by Disney).
Which monetization strategy to choose
Most mobile applications do not
bring profit to their developers, according to forecasts in 2018 only 0.01% of
mobile applications will be profitable. Many applications simply are not
created for earnings. According to Juniper Research, revenue from applications
in 2019 will be $ 100 billion. It is believed that the revenue from games in
2017 should be 40.8 billion dollars. According to the research company Swrve to
buy game content in games, only 1.5% of users are ready.
There are not so many users who
want to pay for application. Most of them are concentrated in certain countries
and are owners of specific devices. Also much depends on the type of mobile
application being developed: game, tracker, messenger, book or application for
business. If the book is better to sell, then mass play will be in a free game.
The most payable population are
citizens of the United States, Japan and Britain. A large number of users in
the world are not willing to pay for using the mobile application, for example,
the statistics of downloads for India or Brazil is great, but the profit from
users from these countries is small. The paying audience is so small that
developers will have to segment the user of their application clearly.
For freemium products, users do
not make any special demands, but from the products they pay for, they expect
to get a good design, beautiful picture, user-friendly interface and decent
functionality.
Games and entertainment, perhaps
the most popular category of mobile applications. For applications in the
category "Business" users are ready to pay if the application has a high
quality and helps to conduct business.
The trial-time model is well
suited for business applications or for applications that require a
subscription. Subscription can be offered only targeting a payable population.
Experts strongly recommend to think and look for the "golden" ratio
of the free and paid part of the application and not to anger the user with the
requirements to pay for each action.
It is possible to get revenue with
the freemium strategy if the application is designed for a mass audience.
Monetizing an application using advertising will also bring results when the
audience of the application is a million: the Latin American market, Russia or
the Asia-Pacific market.
The user and the application are the main criteria for
the developer to choose the monetization strategy. Brainstorming, discussion of
case studies, analysis of recent research results and testing by users are also very helpful.
Sources:
http://info.localytics.com/blog/app-monetization-6-bankable-business-models-that-help-mobile-apps-make-money
More analytics insights are here: http://haneenalansari.blogspot.com/2017/05/data-monetization-strategy-in-business.html
More analytics insights are here: http://haneenalansari.blogspot.com/2017/05/data-monetization-strategy-in-business.html
Data Monetization is a way of process of actively generating value from a company’s data inventory.
ReplyDeleteI think that Freemium strategy is a very powerful one.
ReplyDeleteInteresting blog i like the way you address the different models of monetization. I like the freemium strategy as well
ReplyDeleteTrail model can be implemented just for start-ups
ReplyDelete