Mobile commerce is the future. In fact, mobile commerce is expected to represent 45% of all commerce sales by 2021, and this number is projected to increase in the coming years. With millions of smartphone users conducting business on their mobile phone, merchants without a mobile app or a mobile-friendly website are missing out on an excellent source of revenue. Thus, they should immediately start to prioritize mobile marketing.
Mobile apps can be vital to the success of a business because they offer benefits that directly affect a company’s bottom line. Mobile apps increase brand awareness and allow potential customers to see and build positive associations with your brand any time they open their phone. Mobile apps also increase your customer’s engagement, allowing customers a convenient way to shop and interact with your brand. With so many incredible benefits, it is a big surprise that some businesses have not developed a mobile app.
Businesses without mobile apps are not the only ones that need to revisit their mobile marketing strategy. Countless other merchants, even those that already use mobile apps, are missing out on growth and money because they have not monetized their mobile commerce. In addition to gaining more customers and improving conversion rates and sales by offering mobile options for smartphone users, businesses can benefit by monetizing their mobile apps, too.
There are many more ways to monetize your mobile commerce than by selling your products and services. A few of the best ways to make additional revenue with your mobile app are through advertisements, subscriptions, in-app purchases, and premium versions of the app. Here are some tips for monetizing your mobile app using these four methods:
Advertisements
Although at first it might seem counter-intuitive, offering your mobile-app for free can actually increase your revenue. One of the best and most common strategies used by businesses to monetize their mobile apps is to incorporate in-app advertising on their free mobile apps. These ads could be banner ads, full-screen ads, notification ads, or whichever style best suits the needs of your mobile app users and your company.
Advertisers know how frequently consumers looking at their phones and how much time they spend using mobile apps. This year, mobile advertising is expected to account for over 69% of all digital advertising. Advertisers are willing to shell out top dollars for the opportunity to share their message with smartphone users.
If you work with the right advertising agency and network, you could see a significant increase in profitability by allowing advertisements on your mobile app. You can also charge users a fee to be able to use your mobile app without ads, providing you with another way to earn money off of your mobile app.
Subscriptions
Offering subscriptions is another great way to bring in a steady stream of revenue and boost your mobile commerce. Customers who frequently use your mobile app in order to access the services you provide, can sign up for a subscription and provide their billing information. This way they are automatically charged each month in order to keep their membership or subscription active, and neither you nor your customers have to worry about whether they remember to update their subscription or pay for another month.
In-App Purchases
Providing opportunities for your customers to make in-app purchases is a great way to make money with a free mobile app. You can use in-app purchases to allow users to buy your products or services without ever needing to leave your app, and you can also use them to unlock certain features for your mobile app or business. While users can download your mobile app for free, they will need to make purchases within the app in order to access more features and an overall enhanced experience.
Premium Versions
Try offering consumers a free and a premium version of your app. The free version, which you can still monetize through advertisements and in-app purchases, will have limited features and capabilities but will still be functional. The premium version, however, will allow your mobile app users more features, options, and functionalities for a small cost.
Smartphone users who download the free version of the app will get a glimpse of what your company’s app can offer. If they enjoy the free version, they will be interested in unlocking the full potential of your mobile app by paying for the premium version.
For help developing a well-designed eCommerce website that is optimized for mobile use, contact Wagento.
