Congratulations on deciding to create a mobile app for your business in South Korea! We are sure you’ve spent countless hours crafting the idea, the problems you will solve, and defining the target audience impacted by your digital vision.
In today’s digital age, a mobile app for your business permits you to go directly to your customers and foster a closer connection.
Especially in a country like South Korea where over 40 million smartphone users reside and spend more than five hours on mobile apps each day on a regular basis.
Renowned social and mobile games app company CookApps uses rewarded video ads to let users watch advertisements in exchange for extra lives and game items. This strategy has been fruitful for them in generating a consistent lucrative income.
Below are the highlights of their achievement:
- The company enhances its cost per thousand impressions rates by integrating Admob mediation.
- They have increased app revenue by 86x and achieved an 4% average revenue per daily active user.
Going with a mobile app for your business also lets you stay on the front seat of innovation in a dynamic world that demands user convenience over anything.
To create a mobile app, businesses either go with having an in-house department or hire mobile app developers on a contract basis depending upon the budget and project.
If you are new to mobile app development or you want to know why your business needs a mobile app, read this blog where we have explained this process in detail.
What is Mobile App Monetization?
Mobile app monetization is all about transforming your app into a revenue generator and making it a legitimate source of income needed for a stable business.
Just like any business, you need to ensure that you can earn sufficient revenue to continue to cover your development costs provided to mobile app development company, run your operations, and provide sustainable growth for your future endeavors.
Polaris Office is a mobile app known for editing and saving documents, presentation and spreadsheets.
It has a whopping 60 global enterprise clients and 130 million cloud subscribers, making it a leading enterprise tool.
As they were in open competition with big players – Google and Microsoft, they were struggling to grow significantly.
Through partnership with Moloco SDK, they experienced different monetization techniques.
Below are the figures achieved with the help of successful monetization practices- In App Advertising and Subscriptions.
Check out how Polaris Office grown revenue by using use in-app advertising and subscriptions through Moloco SDK:
- 15% in ARPDAU for Android
- +10% in ARPDAU for iOS
- Moloco SDK as the top three ad network in average eCPM.
It is practically impossible to survive financially in the long term without a systematic and result-oriented monetization plan.
Considering the tons of options users have, ensure that your app offers everything that can persuade users to pay for your app service.
One of the crucial aspects that has worked for many businesses in their app monetization journey is smooth user experience.
User Experience has a significant role in app monetization as it is directly linked with how effortlessly users interact with your services.
Why is User Experience Important in Mobile App Monetization?
A robust user experience is necessary for the success of mobile app monetization as it provides numerous benefits to businesses.
A cluttered and complex app for your users will directly impact user retention and lead to abandonment.
Below are some key benefits a business can gain by crafting a well-designed and seamless user experience:
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Higher Traffic with UX Optimization
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Stay Ahead of the Competition
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Business Lead Enhancement
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Improved Credibility
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Increased Customer Satisfaction
1. Higher Traffic with UX Optimization
As a digital business owner, remember that your potential customers have a lot of options to choose from.
A poor navigable mobile app is a waste of time and effort, something that no customer wants.
A seamless and engaging UX-optimized app developed by a mobile app development company creates an interactive experience for users.
As a result, it will let satisfied users recommend your business to others and enhance your customer base.
An UX optimized application lets more customers visit and revisit your app and increase monetization opportunities.
2. Stay Ahead of the Competition
Users have plenty of options as there are many apps offering similar products and services.
It's the well-designed app that stands out and wins the race in the end. Having a well-designed mobile application puts your business in front of your competition and results in higher customer retention rates.
It also builds a positive image of your business in the eyes of your customers that you truly prioritize delivering an enjoyable experience.
In terms of monetization, it lets more and more people spend time on your application to let you implement monetization strategies such as ads and in-app purchase options.
3. Business Lead Enhancement
A well-optimized mobile app functions like 24/7 sales personnel for your business. It lets more people make their purchase for your app that ultimately boosts your monetization strategies effectively. You can implement monetization models such as in-app offers to enhance your sales.
The rapid increase in customer interactions on your app also increases the window of converting more business leads and makes them your loyal customer base. Isn't it a compelling reason to get your mobile app UX optimized?
4. Improved Credibility
An optimized app does no cost public relations for your business. It creates an image of a trustworthy, professional entity and increases its reputation.
It also helps in retaining more customers and enhances your revenue streams from monetization.
It becomes essential for business owners to take mobile app development services from top rated app development firms like In Time Tec, to ensure the app is optimized from every aspect.
5. Increased Customer Satisfaction
Ultimately, the success story of every business is written by the ink of its happy customers.
A well-designed app or website encourages users to become loyal customers who trust and subscribe to your services.
You can implement monetization models such as ad interactions and premium subscriptions to uplift your revenue streams.
Hire mobile app developers in South Korea who can help you better in designing an optimized app.
Future of Mobile App Monetization
The present and future of Mobile App Monetization is positive and appears with lots of hope and growth.
However, it also comes with numerous challenges that businesses need to face to thrive in their industry.
Staying ahead in the competitive world is possible by adopting user-centric practices to achieve sustainable success driven by market trends and technical prowess.
Adopting appropriate mobile app monetization strategies as per your business lets you generate income and lets your business remain profitable.
You can hire mobile app developers in South Korea for the best outcome in crafting an application for your business.
Different Types of Monetization Models
Earning revenue through app monetization is crucial for businesses owners to thrive in their industry.
Below are different types of monetization models, having their own set of strengths and use cases.
Through analyzing your business model, target audience and features, you can opt or combine them to enhance your profitability. Read about them in detail.
- Freemium Subscriptions Model
- Premium Subscriptions Model
- In-App Purchases Model
- Sponsorship or Partnership Model
- In-App Advertising Model
- Data Monetization Model
- Location-Based Model
- Crowdfunding Model
- Affiliate Marketing
- SMS Marketing
- Email Marketing
1. Freemium Subscriptions Model
Just like the name reveals, in the freemium model you permit users to access the basic features of your application for free.
However, to access the complete or premium features, a subscription is required. This approach is popular as it lets the user build trust in your brand and your offerings without any monetary commitment.
According to Statista, as of February 2022, the majority of the leading apps on the Apple App Store are free or freemium apps.
It also lets them explore your business and analyze the willingness to pay for the premium version to justify the subscription value.
If you seek to consider the freemium subscription model, you may go with hiring South Korean mobile app developers as they bring expertise in appropriately executing the task.
When you need to implement it - We recommend freemium app model when your app session can expand to longer duration.
2. Premium Subscriptions Model
In the premium version, users can only access the offerings of the app content through a prior subscription.
This sort of monetization medium is highly effective for individuals willing to pay upfront for comprehensive and top-quality service.
According to Statista, 17,3% of global internet users pay for a mobile app each month (in Q3/2023).
Premium subscription value is generally opted for by journalism or educational platforms to deliver exclusive content on their platforms for premium customers.
When you need to implement it - This model is perfectly suitable for business that is meant for long term use. Example - Medium.
3. In-App Purchases Model
Extremely popular in the entertainment and gaming industries, the in-app purchases model is an effective way to monetize apps for business owners.
In-app purchases are counted among the most common monetization models. An estimated 50% of non-game and 79% of game apps use it.
It accounts for 48.2% of mobile app earnings as compared to 14% from ads-based revenue and 37.8% from paid app downloads.
While the app is free to download, it permits the users to buy goods and services directly from the app.
The success of this model lies in its flexible monetization, as it assures that users can make the investment in the application as per their preference.
When you need to implement it - You can go with this monetization model if you are aiming for building a gaming application.
4. Sponsorship or Partnership Model
In the sponsorship or partnership model, a mobile app collaborates with other businesses to advertise the application.
It is a collectively beneficial setup as not only does it enhance the business value of the app but also does advertisement of brands endorsing their offerings.
Users also get attractive discounts on the brand by using the application. If you are unsure about implementing the sponsorship model, you may take guidance from your mobile app developer in South Korea for their input in this direction.
5. In-App Advertising Model
The in-app advertising model is one of the fastest-growing monetization methods known for generating consistent income for business owners.
In this, ads are displayed while using the application, and revenue is generated by clicks, impressions, and conversions.
It is widely adopted in free mobile applications where ads are displayed in the form of banners and videos to involve the users while generating income.
6. Data Monetization Model
The data monetization model is another of the fastest-adopted monetization mediums through which the business generates revenue from its app.
In this, the user data is collected and sold to third parties that further examine data to extract the user behavior and preferences.
It is very much in trend as it makes it easy for third parties to know their potential customer shopping patterns and present their offerings accordingly.
However, developers must abide by the data protection laws as users are sensitive about their privacy and prioritize safe browsing.
7. Location-Based Model
Does it happen to you that while ordering food from a food delivery app, an ad suddenly pops up on your screen of a restaurant near your location?
In this, GPS has been utilized by apps to target the users on the basis of the location.
The location-based demography allows businesses to reach local customers and gain popularity within their specific circle.
8. Crowdfunding Model
Just like the name reveals, the crowdfunding model lets businesses raise money from the community via various platforms.
This sort of monetization medium is often used by apps that start with a low budget.
It also ensures a loyal user base that finds a positive vision towards the app and is willing to support sustainability.
9. Affiliate Marketing
Affiliate Marketing is a traditional form of app monetization model where businesses advertise their products or services in the app.
If a user makes the purchases using the affiliate links as the medium, the developers receive a pre-decided commission.
It is widely used by apps dealing in skincare, shopping, and lifestyle products and services.
10. SMS Marketing
SMS Marketing is one of the oldest forms of promotional activity in the digital era. The mobile app developers use SMS to market the notable features and offerings.
This method has been highly effective and result-oriented for businesses in boosting their offerings and updates.
Despite being old, SMS marketing is used by many businesses to form direct communication with their potential leads and make them customers needed for stable growth.
11. Email Marketing
Email marketing is a cost-effective yet fruitful approach that permits app builders to create email campaigns about their apps and send them to their contacts.
App developers use emails to promote products, festive offerings, new features, and a lot more.
Apart from being cost-effective, email marketing is also known for creating consistent and long-term relationships with users as it keeps them updated about all the latest happenings in the app.
In context of mobile app monetization, it can help in promoting the in-app purchases where the offers of the features can be updated directly through the application.
It can also help in retargeting the users and provide them with decent incentives to persuade them to make a purchase.
Conclusion
As a business owner seeking to strive in online business by creating a mobile application, it is essential to have a robust monetization strategy for matching user expectations and market standards.
The above-mentioned monetization models have been profitable in making digital businesses successful globally.
You can choose a model recommended by your mobile app development company that aligns with your business practice and the purpose you are trying to solve from your application.
As business involves trial and error, focus on finding the correct sort of practice to generate revenue and customer satisfaction.
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