Are You Using the Best Monetization Strategy For Your App?

In our previous blog, we talked about the ever-increasing demand for free applications on app distribution platforms, and how publishers of these applications generate the highest revenues. We also broke down some of the most popular app monetization strategies and their specific execution through digital marketing companies, along with their role in the money-making process.

Just to recap, we’ve talked about advertisement through affiliate marketing and commercial displays, along with the different types of display ads. From there, we went on to discuss the utility as well as the challenges of implementing a subscription model. We also extensively talked about in-app purchases and how their lucrative nature calls for a certain number of developmental and designing hiccups when it comes to implementation. Finally, we ended on the app merchandise model that is often combined with e-mail marketing, and its relevance in the booming world of e-commerce.

Now, let us continue to highlight a few more of these commonly and popularly used app monetization models, according to leading app development companies in Kuwait.

Sponsorships and Influencer Marketing

When it comes to sponsorship, there needs to be an implicit alignment and a decent overlap between the sponsors’ target audience and the target audience of the app publisher. Only then can the potential brands and organizations benefit from the partnership. It’s also imperative to adapt the app design as well as the information provided within the app, with the specific brand. The sponsorship deal can be such that the app revenue is evenly divided or that the sponsor gets a fixed monthly fee. This strategy can prove incredibly helpful for promoting your app and expanding your user base since you, the app owner, can take advantage of the brand’s pre-existing customer loyalty and web traffic. However, it’s important to remember that this method isn’t the same as simply running ads on your application. It instead involves deep integration of sponsored content (logo, icon, etc.) within the app. The sponsorship model can increase revenue manifold but requires a unique app and a compatible market niche.

Influencer marketing is a slightly different concept wherein instead of dealing with a business, you will directly deal with a social media influencer who is popular among your target audience. Influencers can promote your app and attract their fans as well as a new potential user base, and in some cases, become your app ambassador.

Date Collection and Selling

Apps generally tend to generate a ton of user behavior and user details such as e-mail addresses, social media accounts, personal preferences, etc., which is highly coveted by researchers spread across a range of different fields. Companies and app owners can sell users’ personal data on their databases to interested researchers and other third parties. Companies may also choose to keep this raw data for their own purposes. This method can produce quite a bit of revenue. However, this can be a tricky model since it becomes hard for app publishers to maintain a certain level of accountability with users and can even lead to consumer privacy violations.


This is a relatively new monetization method where the developer uses platforms like Kickstarter, Patreon, CrowdFunder, etc., to raise funds. This money is used to satisfy needs of the developmental or marketing process, or in other cases, for a novel business idea, charity, or some other cause. A crowdfunding campaign can be launched through the app itself by providing potential investors with a detailed overview of your project, short-term and long-term goals set for your app, and the actual problem-solving nature of the app. On the downside, it may be difficult to get crowdfunded since these platforms receive thousands of applications on a daily basis and the product/service offered must be worth the risk and investment.

These are a gist of some of the most widely used models by mobile application development companies that app owners rely on to generate profits. But you might be wondering, how does one know which monetization strategy is best suited for their business or app, and how should they go about determining that? There is actually a process to be followed that corresponds to the app development process and encompasses a similar series of steps, which are:

  • Establish the type of app – What problem does your app solve and how does it do it? What is the purpose of your app? Is your app more content-oriented or service-based? In that case, a subscription model would prove to be a good fit. A deep and thorough market research is an imperative initial step.
  • Analyze competitors – Look beyond the design and function of the competitor’s app. Ask yourself what are they doing different from you? How do they make their money? What types of monetization models are they using and how effective are they?
  • Know your target audience – Try to create a portrait of your app users and forecast how much time and money would they be willing to give up in order to access the functionalities of your app. Study your target audience and assess their needs to figure out the real value of your app. This will help you choose a relevant monetization model(s).
  • Create an innovative app – Your app concept and design have to be high-performing, user-friendly, and in accordance with the needs of your target audience. From your research, you already know about the kinds of apps that are already available and whether or not they are successful. Use this information to create an app that users will find catchy, clear, and inspiring.
  • Identify a monetization strategy – Finally, your app developers and digital marketers can come together to define an effective app monetization strategy customized for your business. Analyze your app structure, target audience, expected revenue stream, and the pros and cons of each monetization model. Truth is, there is no definite monetization model that will single-handedly deliver your desired income and engagement rate. Top app development companies in Kuwait combine multiple monetization models in line with the purpose of the app. For instance, in-app purchases and advertising can often be fused with subscriptions. Different methods suit different requirements and finding out the best fit for your app might involve some trial and error before a conclusive strategy is implemented. The key is not to overdo it, else you might end up annoying your users and losing your main source of revenue.

All in all, choosing the right combination of monetization strategies is a complex yet crucial task for ensuring that your app’s value is being realized and that you are generating income accordingly. We, at Design Master, one of the best app development companies in Kuwait, employ an experienced team of app developers and digital marketers who will help the design the best monetization strategy for your business.

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