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Mobile devices are now the most popular way to use the internet. 71% of all digital minutes in the USA are spent on mobile phones, with comparable figures in Canada and the UK. All that time spent on devices means major moneymaking opportunities for mobile apps. Perhaps that’s why there are over 2.8 million apps available through Google Play.

However, having an app isn’t the only thing your company should consider. You also have to make sure that your customers will use it. That’s much more difficult to do. Consider the following: a quarter of users abandon apps after a single use. Unless your app has an extremely high price tag, that doesn’t leave you much time to make money before your app is ignored.

With challenges like that, it’s no wonder that so many people are looking for advice on how to successfully monetize their apps. Check out our list of tips on how to increase mobile app revenue, and see how many of them can work for you:

1. Up-Front Purchases

The first strategy on this list is the simplest and oldest way to make money from an app: set a price to download it. A lot of companies now offer apps for free, but that doesn’t mean you can’t still make money this way. In fact, the risks of creating a paid app are lower in some ways. Even if your user abandons the app after a single use, they’ve still made the purchase, which means you’ve made money from them. The catch is that you won’t be able to keep making money from them after that initial purchase.

2. Use Paywalls

Let’s say that you decide to offer your app for free—at first, anyway. That makes your app freemium. Freemium is software that initially costs nothing, but which comes with optional paid features. You charge your users to unlock this “premium content”, which also entices them to revisit the app.

3. Allow Numerous Purchases

Some app developers take the idea of a paywall even further. Instead of letting users access all premium features with a single payment, they set a price for each new feature. This strategy is especially popular in mobile games. If you charge users a price for each item they buy in-game, you can make a lot of money—especially if the items must be restocked after each use.

 

4. Use Ads to Drive Purchases

Of course, advertising is one of the most common ways for app developers to make money from long-term users. However, you have to be careful with it. Too many ads will likely drive away your users and contribute to abandonment of your app.

Partnering with ad networks provides you with revenue based on several possible criteria. Click-throughs and impressions are two of the most common for banner advertisements. You can also choose to use ads in conjunction with a paywall. Include banners in the free version of your app, but charge a price for customers to upgrade to an ad-free experience.

5. Use Video Ads

Banners are a common strategy, but they can also be risky. Remember, you don’t want to make your users abandon your app by annoying them with pop-up banners. However, data shows that users are far less likely to be inconvenienced by a video advertisement. Click-through rates for videos are 7x higher than those for banner ads, and 87% of publishers say that video ads provide the greatest user experience.

Video ads stay in the minds of your users much longer than banners do. Think of it like the difference between trying to recall a movie that you’ve seen in theatres and trying to recall the poster for it. Single images just don’t have the staying power that an entire presentation offers. Here’s the real kicker, though: video ads currently account for 55% of all app revenue. That makes them the most likely way to monetize your app.

There are many ways to make money from your mobile app, but not all of them are equally effective. If you want to bring in money consistently, you’ll need to go beyond setting the initial price of your app and consider more creative tactics. For game designers, the best solution might be to include a variety of in-app purchases. For most other app developers, partnering with an ad network that will let you run video ads should be considered an essential step on the road to success.

With that in mind, take time to make sure your app can display video ads by implementing an SDK that supports them. SDKs are packages that deliver various plugins, but coding them can take time. Using an SDK service like Enhance can streamline this process, and make your app video-compatible in next to no time.

By using the right tools and strategies, you can make it easy for your app to keep bringing in revenue. Refer to the tips listed above, and use the right tools to set up your app for success.