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4 methods of App monetization ！

Author : Hannah

Update time : 2022-03-18 17:05:00

4 methods of App monetization ！

Apps are useless without a good Monetization. A good app monetization method must be an efficient and sustainable benign mechanism to drive the rapid growth and long-term development of app with commercial value. It can be said that for developers in the early stage of entrepreneurship, finding the right monetization method is half the success.

monetization method of app
At present, there are four mainstream ways of APP monetization:
a. Provide value-added services in the application
This is the most traditional and ideal way in the industry, such as charging for Game App props, charging for video app on demand, and charging for downloading app to give users more advanced privileges. However, this requires that the app has strong user stickiness and value-added services are quite irreplaceable. Otherwise, in the face of payment options, many users will choose to switch to similar products, which will directly cause the loss of users.
b. In app product purchase
This method can also be called "e-commerce monetization", and its application scope is not limited to e-commerce app. After all, in the face of the domestic prosperous tide of e-commerce, especially driven by the trend of short video + live broadcast, all kinds of apps have tested the water one after another. However, the threshold of this "looks beautiful" monetization
method is high, which requires that the app as the traffic entrance has a large enough user group, and the developer itself has sufficient data mining and user portrait analysis ability to complete the personalized product recommendation to users.
c. Application distribution
At present, this monetization method is the patent of head application market app. As the preferred tool for users to quickly obtain the required app, its monetization potential is undoubtedly huge. However, it is not very friendly to other types of apps, especially growing apps.
d. Advertising monetization
If the first three monetization methods are more suitable for specific types of apps, advertising monetization is a way with lower threshold and wider scope of application. After all, where there are users, there is traffic, where there is traffic, there is advertising, and where there is advertising, there will be revenue. Moreover, advertising monetization does not require users to pay for some functions of the app. Almost all free applications with traffic can access advertising.

Pain points of advertising monetization
However, for the seemingly most universal and feasible method of advertising monetization, many developers "talk about advertising color change". Because for them, the biggest worry is that implanted advertising will affect their own user experience, and where to find high-quality advertisers? How to technically achieve the correct posture of advertising implantation, so as to achieve a dynamic balance among users, traffic and revenue?
a. Advertising vs user experience
First of all, it needs to be clear that for those users who have click interest in advertising and finally promote the purchase, advertising will not cause a negative experience, but is a valuable information that allows users to meet their consumer needs while using the app. It can be said to kill two birds with one stone.
After breaking this psychological barrier, the remaining problems will focus on: how to balance users and benefits, and achieve the maximum benefit under the condition of ensuring the user experience?
1) Advertising style:
In recent years, the advertising styles in the industry continue to push through the old and bring forth the new. The root cause is also the worry and exploration of user experience. Developers can reasonably configure the advertising style according to their own app type, try to keep the advertising style consistent with the overall application style and content style, and strive to highly integrate the implantation of advertising information with the app use environment. So as to improve the click through rate and conversion rate of advertising while taking into account the user experience.
Here, take incentive video as an example. This is an advertising style with the highest value of CPM and most popular among developers in recent two years. It is to encourage users to watch advertisements to obtain rewards, such as props for watching advertisements in game apps and temporary privileges for watching advertisements in tool apps. This form can turn passivity into initiative and increase users' viscosity and activity. In addition, developers can also use the user incentive system to develop more incentive video scenes to achieve a win-win situation between user experience and advertising revenue.
2) Advertising management:
In terms of advertising management, we need to pay special attention to:
First, the control of advertising quality.
In order to protect the user experience, developers can formulate "soft" restrictions to block out some compliant but poorly produced advertising content that is completely inconsistent with their own user attributes.
Second, set up reasonable advertising display space and display frequency.
In the selection of advertising display space, we can "run in small steps" in the initial stage and increase the size in a step-by-step manner. Developers can select 1-2 advertising spaces for early observation, and expand other advertising spaces according to the effect and user feedback. In terms of location, at the initial stage, you can select the location with high traffic and high clicks to set buried points to collect more information and data for further judgment.
In addition, reasonable display frequency is also an important part of maintaining user experience. Too high frequency will not only hurt the user experience, but also lower the CPM. Different users and different advertising types have different best display times on different products. It is suggested that app developers find the best display times suitable for this product through experiments.
b. Advertising access mode
The more traditional way is for the media to expand advertisers by virtue of their own direct customers, but because the crowd is not accurately divided, there is no guarantee for the delivery effect of advertisers. Of course, after reaching a certain volume and the technical team is strong, we can consider building our own programmed advertising platform. However, due to the huge advertising product system and complex architecture, the investment from zero construction is high and the risk is relatively large. Developers at different stages of development can carefully consider according to their own situation.
Access to a third-party platform is a common means of advertising monetization. For developers, the time and technical cost are relatively low. Currently, the relatively mature pangolin Kwai, the best volume and quick hands alliance basically satisfy the needs of APP advertisements in small and medium-sized developers. There is also a professional mobile application commercialization monetization platform in the market, which opens up a number of advertising alliances, which can not only connect efficiently and conveniently, but also optimize advertising and greatly improve the income of developers.

On the way of app monetization here has never been a lack of so-called "shortcuts" that can be achieved in a pinch. However, how to achieve revenue while ensuring that users get a better use experience and are not disturbed by commercial operations is inseparable from the committed pursuit and efforts of developers.

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