If you plan to launch your app soon, this blog is a must-read for you! You may have defined multiple goals you want to achieve by developing your mobile app. However, let’s just focus on one thing: making more money!
But you should consider choosing monetization methods that work for you. Making a suitable choice won’t be easy, but it’s the most important step you cannot overlook.
Let’s explore the best monetization strategies suitable for on-demand apps.
It may sound shocking, but a recent report by Data.ai shows that the app economy is worth $500 billion. $167 billion out of the total value, that is, 33% of revenue, comes from advertising. Additionally, $336 billion, that is, 67%, is generated via in-app purchases.
A study by Statista.com says that as of July 2023, 8% of the mobile apps in the US were monetized by paid ads.
The statistics point out that launching Gojek Clone, Uber Clone, or any on-demand app will help you make good money.
The only thing you have to ensure is that you pick the right strategies!
App monetization is the process of earning money from a mobile app without charging users to download it.
Since many app developers now offer their apps for free, people have become less willing to pay for them. However, the business has to earn money without making customers unhappy.
Well, this is where app monetization strategies come in! To make money, app developers use various methods, including in-app ads, platform fees, in-app purchases, etc.
Choosing the right method depends on plenty of factors, such as:
- The type of app: The type of app you develop will impact how you earn money from it. For example, your on-demand app will be able to make money from in-app ads and subscription plans, while a game app will be able to make money from in-app purchases.
- Target audience: Your target audience will affect how much you earn from the application. For example, you can earn money from a freemium model with a children’s story app or game app, while your on-demand app will make money from a subscription model.
- Competition: To succeed, you’ll have to build a competitive mobile application. Therefore, you will have to see what your competing businesses are doing and accordingly use the monetization strategy.
- Marketing strategy: How you wish to market your app will also impact your app monetization strategies!
To ensure an app keeps making money and keeps users happy, you need to consider one of these app monetization models or combine them to generate handsome revenue.
Listed are some of the most interesting and high-performing strategies that you can integrate into your on-demand app.
With the rapid increase in smartphone use, digital advertising has become a staple for businesses to make money. When digital advertising was new, App developers heavily adopted banner ads in their apps. However, they were facing problems adjusting these banners to fit smaller mobile screens.
Over time, these banner ads evolved, and we now have video ads, native ads, and text ads specifically designed for mobile app screens. Using in-app ads generates excellent revenue. And thus, they have become one of the most popular app monetization strategies.
Well, the market for in-app advertising is expected to reach $314.50 billion by 2023.
In-app ads perform better than traditional banner ads, leading to more significant results and income for the app owner. Moreover, these ads can be easily tailored according to the audience. Therefore, it is known to be the most effective advertising method, as users find it interesting and interact with it as well.
With the subscription method, app admins can make recurring income! It means that the users too have to make payments regularly to you so that they can use your on-demand app like Gojek or Uber.
Simply put, in subscription models, users have to regularly pay a fee to access on-demand services like taxi booking, doorstep delivery, etc.
Using this app monetization method, you can make a steady income and keep your users coming back to your application.
There are different types of subscription models:
- Monthly subscriptions: Users pay a fee every month to book the services or simply use a premium app feature.
- Yearly subscriptions: Users have to pay a yearly fee, which is often offered at a discounted price. It means that users can access the on-demand services on your app anytime for the whole year!
- Freemium subscriptions: The app is free to download, but users can pay a monthly or yearly fee to access additional services.
Using a subscription model can be a smart way to make money from your app. Besides, you can also keep them engaged with your application. However, you have to do your research well, and only then can you devise a beneficial subscription plan for the users.
Making money with a hybrid app monetization model means using multiple strategies together. Most free mobile apps combine monetization methods instead of relying on just one. For example, a free app may show in-app ads and offer services based on a subscription model.
However, if you’re planning to choose the hybrid model for your Gojek-like app or any other on-demand application, consider following these tips:
- Choose the right mix of monetization strategies that suits your business goals.
- Test the monetization strategies that you want to add to your app. It will help you determine what works best for you.
- Make it easy for users to pay on your app, no matter which monetization strategy you pick.
- Provide excellent customer support and fix their issues as quickly as you can.
There are many different things to consider when considering your best app monetization strategies, such as target audience, marketing plan, type of app, etc. However, if you are determined to find the best strategies for your on-demand application, you should ask some questions before moving forward. Here are some questions:
- How is your app unique?
- Would you be willing to pay for the app you’ve developed? If so, what’s a reasonable price, according to you?
- Is making money your priority goal right now?
Think of approaching an expert if you cannot find the right monetization strategy for your Gojek Clone, Uber or Lyft Clone, or any other similar on-demand app. See that every monetization strategy is well-optimized as per your business needs!
So, what are you waiting for? Get professional help today!