Introduction
The Apple app store receives over 10,000 app submissions weekly, making iOS app publishing a competitive business. Monetizing the app and getting good returns is another tedious process.
However, if you already have an established app with the right monetization strategy, there is a high chance of substantially increasing your iOS app revenue.
In this article, we will examine different ways to monetize iOS apps and explore the current trends in iOS app monetization.
What is iOS app monetization?
iOS app monetization refers to the various methods that app developers and publishers use to generate revenue from their iOS apps. This can include displaying ads within the app, offering in-app purchases or subscriptions, using the freemium model, or using other methods to generate income. The goal of iOS app monetization is to create a sustainable revenue stream for the app and its developers.
To monetize an iOS app effectively, it is essential to consider that iOS users differ from Android users. This may require a different monetization strategy, as certain advertising formats or payment methods may only be available on some platforms. Considering these factors, you can determine the most appropriate monetization strategy for your iOS app.
All about iOS monetization and its trends
It’s a fact that iOS apps generate more revenue than Android apps. However, choosing the right mobile app monetization approach is crucial for your app’s success. For some iOS apps, a combination of different strategies works wonders. While for others, a single model could work the best. Remember to make your model simple for your users.
Let’s discuss the different iOS app monetization models and how they can be mixed and matched to maximize revenue. We have gathered the most widespread methods of iOS apps monetization so that you can decide on the one most appropriate for your iOS app.
5 ways to monetize iOS apps?
1. In-App Advertising
It is the most widespread method of iOS app monetization, including the major social media apps. Banner ads, Full-Screen Interstitial ads, Native ads, Video ads, and Interactive and gaming ads are some of the in-app ad formats.
Pros:
- Easy to implement when compared to other approaches.
- Can monetize from the very first day as users are more likely to download free apps immediately.
- Multiple choice of ad formats to improve user experience
Cons:
- Not suitable for all kinds of apps
- Require a large user base to earn substantial revenue
- Ad fatigue may cause a revenue drop
2. In-app purchases
It is another popular monetization model where users pay for virtual currency or goods within the app. Gaming apps use this model of app monetization.
Pros:
- It can be used as an additional revenue stream along with in-app ads.
- Increases user engagement for the users who made the purchase
- Implementing in-app purchases is relatively straightforward and can be done through the App Store or other payment gateways.
Cons:
- It may only appeal to a small percentage of users
- Users may become frustrated if they feel like they are constantly being asked to make purchases within the app
- Users may be more likely to choose a free app with in-app purchases over a paid app
3. Subscriptions
This model is becoming popular amongst iOS apps. In this model, app functions are available for a monthly fee, usually deducted on the same day. The subscriptions work well with the freemium model as users get a glimpse of the app before making a payment.
Pros:
- Recurring revenue from engaged users
- Subscriptions can encourage users to spend more time in the app, leading to increased user engagement
- It increases the retention of subscribed users leading to higher LTV
- Implementing subscriptions is relatively straightforward and can be done through the App Store or other payment gateways
Cons:
- It may only appeal to a small percentage of users
- Your app needs to have actual premium content that users are willing to pay for regularly
- Not suitable for apps where content is not updated regularly
4. Pay-To-Download
This is the most straightforward way to monetize an iOS app. Premium apps allow users to download the app only after paying. Thus, freeing users from paywall options and in-app ads. On the other hand, developers can earn money for their apps from the start.
Pros:
- Easy to implement
- Instant revenue generation from each user
- Reduces the server cost as only paid users access the app
Cons:
- Limited users opt to pay for an app upfront
- Marketing a paid app is difficult
- LTV is limited to this one purchase
- Paid apps are prone to piracy and get stolen easily
5. Mixed-Monetization Model
You can also use all the above-discussed methods in combination.
For example, you can create an app with an in-app purchase and offer limited access to the feature by watching a rewarded ad for users who are unwilling to make a purchase. Hence, using In-app purchases and In-app advertising together.
However, it is important to understand which combinations work well together. Hence, you should test different methods and continuously monitor the metrics.
Conclusion:
There are several ways to monetize an iOS app, although what suits your app is a function of your app category, user behaviour, and technical expertise.
It is essential to consider the specific characteristics and preferences of iOS users when choosing a monetization strategy to avoid causing a bad user experience.
If you wish to maximize your revenue through in-app advertisement, AppBroda can be your go-to monetization partner. Our adops experts help you increase your ad revenue so that you can focus on scaling your app business.
