In-App Purchases (IAP) and In-App Subscriptions are two types of monetization that are trending in the mobile app development industry. With users spending more time on their mobile devices than ever before, it is important for developers to find ways to make money from their apps. This guide will cover the ins and outs of IAP and subscription-based monetization including pros and cons, types of IAP, different strategies, testing and user retention.
In-app purchases (IAP)
In-app purchases allow developers to unlock new content or features in their apps. These purchases can be done using real currency but can also be done using an in-app currency called ‘Gold’. In-app purchases use a variety of methods for delivery – Credits, In-app currency, in-app purchase rates, subscriptions etc. Developers can set the price that each item in the app would cost.
However, it’s important to note that if they don’t set the price high enough, they won’t make any money. Keeping in mind these factors, developers can set the price of an item at a high enough level to make a profit. When setting the price of items, developers should also consider the average amount of time a user is likely to spend on each item. While not all items will be used in each session, the more time spent, the more profit developers make.
In-App Subscription (IAS)
App Subscription is a method of charging for access to content inside an app. This can be done using in-app currency or real currency or a combination of both. IAS is similar to a monthly subscription model. Users have access to the content for a certain period of time at a certain price. The amount of time and price is entirely dependent on the app developer.
Some apps may provide IAS for a limited period of time or for a certain number of days or weeks. Users don’t need to worry about how to cancel an IAS subscription. The app developer decides when the subscription ends and you can still use the app as long as you have access to the in-app currency to pay for it.
Understanding User Behavior Towards Mobile Apps
Now that you have a better idea of the various types of monetization, let’s understand the behaviour of users towards your app.
- Users expect to be able to unlock new features and unlock content in your app through IAPs. This means that users will expect your app to have a means of monetization.
- Your app has to be user-friendly. Users have to be able to navigate the app seamlessly and have a clear understanding of how to navigate your app.
- The app has to be easy to find on the app stores. This means that the app has to be listed in the right category, have the right screenshots and a listing that conveys the right content to the right audience.
- The app has to have the right reviews. Users rely on reviews when deciding whether to install an app.
- The app has to have the right rating. Users rely on ratings to decide whether they want to install an app.
- The app has to have the right update schedule to keep the users engaged and satisfied with the app.
- The app has to be compatible with the device it’s being installed on. The app has to be compatible with the operating system, hardware and other apps on the device.
- The app has to be available on the app stores for a certain period of time. If the app is not listed in the app stores for a certain period of time, new users won’t be able to find the app and the app will lose revenue.
- The app has to be maintained properly. The app has to be maintained by developers. Maintaining an app means updating the app regularly, adding new features, fixing bugs, etc.
Types of User behaviour towards apps
Search Engagement – This can be done through Google and Bing searches. Engaging users through search means that users have to be able to find your app and download it. To ensure this, you should have a listing in the app stores with appropriate screenshots and detailed content that is able to convey the right information to the right audience.
Referral Engagement – When a user downloads your app, they may be willing to share the link with their friends. This means that users may be willing to drive ‘revenue’ for your app through referral engagement.
Brand Awareness – If your app is able to create a memorable experience for the user, he may be willing to share his experience with his friends. This means that your app has to create a memorable experience for the user and he may be willing to share this experience with his friends.
Strategies for Successful IAS and IAS implementation
- Make sure that you include an ‘unlock’ or ‘buy’ option in your app for users to be able to unlock content and features in the app. This may sound like an obvious thing to include in your app, but it is important to remember that a lot of developers forget to do this.
- Make sure that the ‘buy’ option is present in an intuitive way that is able to convey the right information to the right audience.
- Ensure that the ‘buy’ option is attractive enough to lure the users towards it.
- Send personalized push notifications to drive the ‘buy’ option.
- Be persistent. Push notifications can be ignored by the users. In order to make them install your app, they have to be engaged enough to click on the push notification.
- Test frequently. Users don’t want to see the same push notification, in the same manner, every time. They want new and different push notifications that can keep them engaged enough to make them make the ‘buy’ option.
- Make in-app purchases easy to make and deliver. Make it easy for the users to make the ‘buy’ option.
- Ensure that the ‘buy’ option is easy to make, easy to confirm and easy to cancel.
- Ensure that the ‘buy’ option is kept up to date.
- Be transparent. Be open about the ‘buy’ option in your app.
- Ensure that users are able to understand the ‘buy’ option and the in-app purchase it represents.
- Ensure that users have the option of making small ‘purchases’ or ‘buys’ or are able to pay a single amount for a subscription.
- Create an option for the user to be able to convert his in-app currency into real currency.
Conclusion
With the growing adoption of mobile devices and the increase in time spent on mobile devices, it is important for developers to find ways to make money from their apps. There are a variety of monetization methods available, and developers can choose the one that best suits their business model and app. There are a number of different types of monetization for mobile apps, and it is important for developers to understand and implement the most successful ones. This guide will help you understand the different types of monetization for mobile apps, how they work, and how you can implement them in your app.
