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https://asoworld.com/blog/mobile-app-monetization-solution-typical-risks-mistakes-in-app-monetization

Mobile App Monetization Solution: Typical Risks & Mistakes In App Monetization

App monetization is the ultimate goal of all app development companies and individual app developers. 5 typical risks & mistakes in mobile app monetization.

Posted: May 10 2022

Home Blog App Promotion Strategy Mobile App Monetization Solution: Typical Risks & Mistakes In App Monetization

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app monetization solution

App monetization is the ultimate goal of all app development companies and individual app developers. No matter what the app monetization strategy, for paid apps and free apps, finding a strategy that suits you, quickly getting user acquisition and a high conversion rate of users is a common pursuit.

 

What to consider when you choose a strategy to help your app get traffic and user growth at the right time? What kind of app monetization strategy is more suitable for the growth of your app business? What challenges will you encounter during your app monetization process after your app is released?

 

It is important to develop apps that users love, however, app developers also need to make sure they choose the right app monetization strategy to maximize their potential user acquirement or they'll lose revenue. Let's talk about how to determine the timing of app monetization and what mistakes are harmful to your app growth and monetization.

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When is the right time to start monetizing your app?

App monetization is an effective way to generate revenue from an app. In other words, it's about how to make money from mobile apps. The timing of app monetization is directly related to the monetization mode of your app.

 

The ways that we are familiar with for app monetization:

  • Paid app - Monetize directly through paying for app;

  • In-app purchase (IAP) - Users can download app for free, and part of the upgrade experience generates in-app revenue;

  • In-app advertising (IAA) - Quickly gain a large user base through app growth, and monetize the sale of in-app advertising space;

  • Industry-expanding app – Industries such as offline shopping or learning share the same user base with shopping apps or learning apps. They maximize business revenue through cross-marketing. It's common to appear in industries such as tourism, shopping, and training.

 

Different monetization models determine the timing of your app monetization, whether to grow while profiting, or to expand traffic and user acquisition first and then invest to monetize.

 

For most apps, whether it's a paid app free for the initial release or a free app with advanced promotion, growth and traffic maximization are the primary goals.

 

In addiition to delivering advertisements, developers can improve visibility and rankings of your mobile app by app store optimization. ASO will identify and target the right audiences in the App Store which bring about the traffic to increase app downloads and installations. When your app has a higher ranking and ratings, it will definitely bring about s lasting traffic which drive your app growth.

 

Figuring out how to make money from your mobile app is a key part of app planning, development, and future maintenance. Even if your app has been online for a while, it's never too late to monetize your mobile app.

 

However, if you're not building an app or platform with user needs in mind, all your preparation and monetization efforts will be in vain.

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5 typical risks & mistakes in mobile app monetization

When it comes to monetization, there are diverse different strategies to consider. How to choose the suitable one to drive app growth? Here, we will talk about the huge pitfalls of app monetization so that you can avoid these risks and better organize your monetization strategy:

 

  • Not from the user's point of view
  • Deliver your advertisement improperly
  • Not experimenting your market
  • Overlook user behavior and cultural awareness
  • Delayed monetization strategies

 

Not from the user's point of view

It’s indeed a challenge to find a balance between monetize your users and provide seamless user experience. If you choose to monetize your ads, make sure that too many ads don't disrupt the natural flow of your app experience. To avoid the loss of users, your ads should be highly targeted and provide the right offers to the right users instead of intrusive or aggressive.

 

Have you chosen to monetize your subscription? Please pay attention that if you fail to deliver the content you promise on a regular basis, or if you continue to show them annoying ads, users who pay for extra value after a free trial won't be able to stick with it.

 

Deliver your advertisements improperly

Ads are commonly delivered to generate as many impressions as possible. However, impressions don't equal revenue. If you ignore user experience, insert ads every few minutes or between actions, your users may abandon you.

 

Different kinds of apps should choose different forms of advertising. Choose the most suitable one that matches the category of your mobile app:

 

  • Banner ads are unobtrusive, but they still stand out enough to grab users’ attention. It's often used in news apps;
  • Interstitial ads can be in the form of display or video, and simply ask users to watch the screen for a few seconds;
  • Native ads is integrated into the design of your app to fit into the app's flow which aren’t there to distract users, but to enhance the user experience;
  • Rewarded video ads that give users the option to watch videos in exchange for additional in-app incentives like in-game life or virtual currency.

 

Not experimenting your market

If you don't define the target audience you want to target, nor do you test the market before launching, you won't know what kind of audience will be interested in your product, or if there's enough demand. Don't forget to make use of the ASO tools to identify your target audience, attract constant traffic and help your app rank higher in the app store. ASO can run through the process of app monetization and has a lasting positive impact on it.

 

Therefore, analyzing potential audiences and testing user engagement during app launch will be the best path to action.

 

Overlook user behavior and cultural awareness

Promoting and selling your app in multiple markets requires you to have a good understanding of how users interact in different countries and adjust your monetization strategy properly.

 

For example, there is a game app and it could be that users in a certain country think your app is too easy to be replaced and won't spend time viewing ads or making in-app purchases. So it's clear that your monetization strategy also needs to be adjusted locally in a timely manner.

 

Research shows that certain monetization strategy is more suitable for certain regions. For example, in countries that lack basic financial infrastructure, in-app purchases or subscriptions may not work properly. Since these users aren't ready to pay for additional app features or in-game content, advertising will be a better monetization solution for that audience.

 

Delayed monetization strategies

Many app developers ignore the importance of app monetization when designing mobile apps, it results that apps are already running in the app market, developers can only use various monetization methods in a mess. Once missing the opportunity to make a comprehensive monetization plan, you will become very passive, and lose a part of your revenue.

 

Before the app work begins, you should preemptively develop a monetization strategy, which will make you more comfortable with the fierce competition on the app platform.

 

Effective solution for the risks of app monetization

Arguably, the first rule of applying monetization is to realize that there is no "everyone has it all" strategy. Different mobile apps require different approaches to get the best results.

 

It is important to note that each monetization strategy has its pros and cons. Finally, the one that works best for you depends on many internal and external factors. Keep an eye on your app first. Decide how you want to use it, which strategies best fit your team's strengths, and the behavior of your target audience.

 

An easy way to minimize this risk is to learn from your competitors. The chances of standing out in a strategy that is already effective against direct competitors are very high. Detailed competitor research can help you avoid recurring mistakes and improve your methods.

 

In order to make your monetization strategy a success, remember:

  • User experience is crucial: intrusive and excessive advertising will be counterproductive to app monetization.

  • The user's experience must be considered: choosing the most appropriate ad format for your app.

  • It's necessary to know your audience: testing the market and the user engagement will provide you with informative data.

  • User behavior and cultural awareness cannot be ignored: making your app and monetization strategy localization will be the main driver of revenue.

  • Having an early monetization plan will make it easier to adjust to the best strategy.


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