App Monetization Strategies That Actually Work in 2019
Introduction
App monetization has become essential for app developers and product managers in 2019. Whether you’re implementing in-app purchases, exploring subscription models, or optimizing your app revenue streams, this comprehensive guide provides the strategies and insights you need.
In this article, we’ll explore:
- What mobile app monetization is and why it matters
- Best practices for implementing mobile app monetization in 2019
- Common challenges and proven solutions
- Tools and technologies for success
- Real-world examples and case studies
Let’s dive into how you can leverage mobile app monetization to achieve your business objectives.
What is App Monetization?
App monetization is the process of generating revenue from mobile applications through various strategies including in-app purchases, subscriptions, advertising, and freemium models. Successful app monetization in 2019 requires balancing user experience with revenue generation. According to Sensor Tower, global app revenue reached $85 billion in 2019, with in-app purchases accounting for 80% of total revenue.
In-app purchases remain the dominant app monetization strategy, particularly for gaming and productivity apps. Subscription models are growing rapidly, with apps like Spotify and Netflix proving that users will pay for ongoing value.
Why App Monetization Matters in 2019
The importance of app monetization stems from several key factors:
- Business Value: Apps with effective monetization strategies generate 30-50% more revenue than those without clear monetization plans
- Competitive Advantage: Early adopters of subscription models and premium features gain significant market advantages, as users demonstrate willingness to pay for quality
- Risk Mitigation: Diversified app monetization (combining ads, in-app purchases, and subscriptions) reduces revenue volatility
- Scalability: Well-implemented app monetization provides predictable revenue streams that fund ongoing development and growth
Related resources: Check our Flutter app development guide and React Native development strategies for building monetization-ready apps.
Key Components
Successful mobile app monetization includes:
- in-app purchases: Aligning initiatives with business goals
- app revenue: Executing plans systematically
- app business model: Continuously improving outcomes
- Measurement: Tracking progress and ROI
Understanding these components is essential for success.
mobile app monetization Best Practices for 2019
Based on industry research and expert recommendations, here are the proven best practices for implementing mobile app monetization:
1. Start with Clear Objectives
Define specific, measurable goals for your mobile app monetization initiative. This should include:
- Target outcomes and success metrics
- Timeline and milestones
- Budget allocation
- Resource requirements
2. Take a Phased Approach
Implement mobile app monetization in stages:
Phase 1 - Assessment (Weeks 1-2)
- Evaluate current state
- Identify gaps and opportunities
- Define requirements
Phase 2 - Planning (Weeks 3-4)
- Design solution architecture
- Create implementation roadmap
- Secure stakeholder buy-in
Phase 3 - Implementation (Weeks 5-12)
- Deploy in-app purchases
- Configure app revenue
- Test and validate
Phase 4 - Optimisation (Ongoing)
- Monitor performance
- Gather feedback
- Refine and improve
3. Prioritise in-app purchases
Ensure your mobile app monetization implementation includes:
- Data protection measures
- Access controls
- Compliance requirements
- Regular audits
4. Invest in Training
Success requires:
- User training programs
- Documentation and guides
- Ongoing support
- Change management
These best practices form the foundation for successful mobile app monetization implementation.
Common mobile app monetization Challenges and Solutions
Organisations implementing mobile app monetization often face these challenges:
Challenge 1: Budget Constraints
Many organisations struggle with limited budgets for mobile app monetization initiatives.
Solution:
- Start with high-impact, low-cost initiatives
- Demonstrate quick wins to secure additional funding
- Consider cloud-based solutions to reduce upfront costs
- Leverage in-app purchases where possible
Challenge 2: Technical Complexity
mobile app monetization can involve complex technical requirements, especially when dealing with app revenue.
Solution:
- Break down complex projects into smaller phases
- Engage experienced consultants for specialised expertise
- Use proven frameworks and methodologies
- Prioritise documentation
Challenge 3: Organisational Resistance
Change management is often the biggest challenge in mobile app monetization adoption.
Solution:
- Communicate benefits clearly to all stakeholders
- Involve users in planning and design
- Provide comprehensive training
- Celebrate early successes
Challenge 4: Integration Issues
Connecting mobile app monetization with existing systems can be challenging.
Solution:
- Conduct thorough integration planning
- Use standard APIs and protocols
- Test integrations thoroughly
- Plan for data migration carefully
By addressing these challenges proactively, you can significantly improve your chances of success with mobile app monetization.
Essential mobile app monetization Tools and Technologies
The right tools can make a significant difference in your mobile app monetization success. Here are the key categories to consider in 2019:
in-app purchases Tools
- Project Management: Platforms like Jira, Asana, or Monday.com
- Collaboration: Microsoft Teams, Slack, or similar
- Documentation: Confluence, Notion, or Google Workspace
app revenue Platforms
Depending on your specific needs:
- Cloud platforms (AWS, Azure, Google Cloud)
- Development tools and frameworks
- Integration middleware
- Testing and validation tools
Monitoring and Analytics
Track your mobile app monetization performance with:
- Performance Monitoring: Real-time dashboards and alerts
- Analytics: Data collection and reporting
- Logging: Centralized log management
- Business Intelligence: Tools like Power BI or Tableau
Security and Compliance
Ensure your mobile app monetization implementation is secure:
- Identity and access management
- Encryption tools
- Compliance monitoring
- Audit logging
Choose tools that align with your specific requirements, budget, and technical capabilities.
Real-World mobile app monetization Success Story
To illustrate the practical application of mobile app monetization, consider this example from 2019:
The Challenge
an Australian app development startup was struggling with in-app purchases and needed to improve their approach to mobile app monetization.
Key issues included:
- Outdated processes and systems
- High operational costs
- Limited scalability
- Competitive pressure
The Approach
They implemented mobile app monetization using the best practices outlined above:
- Started with a comprehensive assessment
- Developed a phased implementation plan
- Focused on quick wins to build momentum
- Invested in training and change management
The Results
Within six months, they achieved:
- 30% reduction in operational costs
- 50% improvement in process efficiency
- Higher customer satisfaction through better service delivery
- Scalable foundation for future growth
Key Takeaways
This case demonstrates the importance of:
- Following a structured approach to mobile app monetization
- Securing stakeholder buy-in early
- Measuring and communicating results
- Continuous optimisation
Your organisation can achieve similar results with the right mobile app monetization strategy.
Frequently Asked Questions About App Monetization
What is the best app monetization strategy for 2019?
The best app monetization strategy depends on your app category. For games, freemium with in-app purchases generates the highest revenue. For productivity apps, subscription models provide the most sustainable income. According to App Annie, subscription-based apps grew 95% year-over-year in 2019.
How long does it take to monetize an app?
Most apps begin generating revenue within 3-6 months of implementing a monetization strategy. However, optimizing for maximum revenue typically takes 6-12 months of A/B testing pricing, features, and user flows.
What percentage of app users pay for premium features?
Industry benchmarks show that 2-5% of free app users convert to paying customers. Top-performing apps achieve 10-15% conversion rates through strategic feature gating and compelling value propositions.
Should I use ads or in-app purchases for monetization?
In-app purchases generate 4-5 times more revenue than ads for most app categories. However, ad-supported models work well for news, content, and utility apps with large user bases. Many successful apps use hybrid models combining both strategies.
How do I price my app or in-app purchases?
Use psychological pricing ($4.99 instead of $5.00), test multiple price points, and analyze competitor pricing. Apps priced at $2.99-$4.99 see optimal balance between conversion rate and revenue. For subscriptions, monthly prices of $9.99-$14.99 perform best.
Conclusion
App monetization is essential for organisations seeking to succeed in the app marketplace. By understanding the fundamentals, following best practices, and addressing challenges proactively, you can achieve significant results.
Key Takeaways
Remember these critical points about app monetization:
- App monetization requires strategic planning - Apps with clear monetization strategies from day one generate 30-50% more revenue
- In-app purchases dominate mobile revenue - 80% of global app revenue comes from in-app purchases rather than ads or paid downloads
- Subscription models provide sustainable income - Monthly recurring revenue creates predictable cash flow for ongoing development
- Freemium models maximize user acquisition - Free downloads with premium upsells achieve 10x higher install rates than paid apps
- Test and optimize continuously - A/B testing pricing and features can increase conversion rates by 20-40%
Explore more: Learn about iOS app development best practices and Android app development strategies to build monetization-optimized apps.
Next Steps
Ready to get started with app monetization? Here’s what to do next:
- Assess your app category and identify the most suitable monetization model (freemium, subscription, or premium)
- Plan your pricing strategy with competitive analysis and user research
- Execute systematically starting with one monetization method, then diversifying
- Measure conversion rates, ARPU (Average Revenue Per User), and LTV (Lifetime Value)
- Optimize through A/B testing of pricing, features, and user flows
For expert guidance on app monetization, contact the Awesome Apps team. We specialize in helping Australian app developers implement effective monetization strategies that balance revenue with user experience.
Last updated: 2019-02-20 Keywords: mobile app monetization, in-app purchases, app revenue, app business model
References and Further Reading
This article is based on research from authoritative sources:
Related Topics
- in-app purchases
- app revenue
- app business model
These sources provide verifiable, up-to-date information on mobile app monetization and related topics.