Mobile-App-Monetization-Models-for-Startups-_preview

Extended Abstract, Intetics

10001 Tamiami Tr N, Ste 114, Naples, FL 34108, United States

intetics@intetics.com

Keywords: Affiliate, Crowdfunding, eCommerce, mCommerce, SaaS, Sponsorship

Mobile app monetization – or the process of driving revenue via app users – is highly strategic. There are numerous monetization models to follow, and this White Paper examines the top 11. Readers will learn about the best revenue generation models for mobile apps, get market insight and key statistics, view the pros and cons of each model, and receive links to helpful resources. Below, you can find an overview of all topics presented in the White Paper.

I. Introduction

The White Paper opens with an introduction to the topic; Intetics explains that a lack of monetization is one of the primary reasons that a mobile app will fail. Learn the average global mobile app sales revenue within Google Play and the App Store from 2012 and 2018.

II. 11 Revenue Generation Models

Intetics provides a description of each revenue generation model for the reader’s convenience, then moves on to a thorough explanation of each one, as shown below:

1. Advertising

This model is suitable in almost every situation, as long as the right ad format is chosen. Learn about the six varieties of ads: interstitial, banner, video, native, rewarded, and text ads. Get statistics from Absolute Market Insights, AdColony, InMobi, and more.

2. Paid Apps

This model is suitable for photo and video apps, productivity apps, navigation tools, and utilities. Learn why the paid app model isn’t very popular, and determine whether it’s right for your app.

3. In-App Purchases

This model is best when you have a large user base and offer a free, high-quality experience. Get insight on in-app purchases based on data from Sensor Tower. Examine the three major types of in-app purchases: consumable, non-consumable, and feature subscription.

4. User Subscription & SaaS

It’s a good revenue model if you can give users value on a regular basis. Learn relevant figures, such as worldwide spending on subscriptions to nongame apps in 2018. Intetics gathers information from App Annie and Sensor Tower to provide users with market insight. Lastly, review the major types of subscriptions: auto-renewable, non-renewable, and SaaS.  

5. Sponsorship

Choose this if major brands are interested in using your platform to promote their brand. Work through a list of descriptors to determine if the sponsorship model is a good fit for your app.

6. Affiliate Deals

This is a good model if your business offers high-demand services of products. Learn the major types of affiliate deals and see which user actions can earn you revenue.

7. Transaction Fees

If your app is designed to operate as a mobile marketplace, transaction fees are the best-fit model. Examine which end-users can be charged and get a real-life example of a company that charges two kinds of service fees.

8. mCommerce

This revenue model applies if your app is a unique ecosystem for you to sell your own products/services. Intetics provides data on mobile sales, then gives examples of mCommerce.

9. Crowdfunding

Choose this revenue model if you can run a successful campaign and/or are already affiliated with a popular brand. Learn some of the best crowdfunding platforms and examine Fluent Forever’s Kickstarter campaign.

10. Donations

Is your app’s purpose highly important for your target audience? In this case, the donations revenue model may be feasible. Intetics gives an example of a company that was successful at this model: CANADALAND. 

11. Mob App Merchandise & eCommerce

Lastly, if your app is based on a brand with a loyal fan base, you can leverage the “mob mentality.” Learn when the monetization model is relevant and get some ideas for branded merchandise to sell.

III. Tracking and Analytics Systems

Intetics highlights that there is no app monetization without analytics, then provides the 3 types of tracking and analytics systems: global mobile app analysis, product analytics, and attribution.

IV. Some Closing Thoughts

The White Paper concludes by presenting data regarding the market landscape, including:

  • Estimated CAGR of software revenue through the subscription model (up to 2023)
  • Estimated CAGR of software revenue through purchased licenses (up to 2023)
  • Percentage of organizations that will use IoT to drive new business models (by 2023)
  • Percentage of companies that will use Machine Learning to analyze data & recommend B2B customer expansion options (by 2023)
V. Useful Links

If you’re interested in learning more about mobile app revenue generation models, check out this section. Intetics gathers useful links to startup portals, accelerators, and venture capital firms.

References

Insights, A. markets. (n.d.). App advertising market by solution, application type, ad type and regions: Absolute markets insights. In. https://www.absolutemarketsinsights.com/reports/In-App-Advertising-Market-2019-2027-266.

 Jessier, M., & Author, A. T. (2017, May 9). Intrusive interstitials: Guidelines to avoiding google’s penalty. Smashing Magazine. https://www.smashingmagazine.com/2017/05/intrusive-interstitials-guidelines-avoid-google-penalty/.

Perez, S. (2020, January 15). App stores saw RECORD 204 billion app downloads in 2019, consumer spend of $120 billion. TechCrunch. https://techcrunch.com/2020/01/15/app-stores-saw-record-204-billion-app-downloads-in-2019-consumer-spend-of-120-billion/.

 Published by Statista Research Department, & 6, J. (2021, July 6). Apple app store and Google Play revenue Distribution 2018. Statista. https://www.statista.com/statistics/259510/revenue-distribution-between-the-apple-app-store-and-google-play/.

Takahashi, D. (2020, February 12). AdColony: 89% of mobile app and game publishers use video ads. VentureBeat. https://venturebeat.com/2020/02/12/adcolony-89-of-mobile-app-and-game-publishers-use-video-ads/.

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