Mobile marketing is growing at a staggering rate, with mobile making up 14.1% of all online advertising in the UK in 2013; it’s a figure that is continuing to grow as consumers use their mobiles more for shopping.
£5.8billion is expected to come from UK mobile retail by 2016
Many SME’s know that they can benefit from mobile, but often they don’t know how.. Or they can’t see how mobile will work for them, at least in terms of paying for itself. If you’re not charging for your app, at least, then how are you expecting to drive a profit? If any?
At very minimum, any business with a web presence should be responsive now, however a responsive website only goes so far.
Apps provide a much better, more engaging user experience, and potentially create something they want to come back to, time and time again. In marketing, there’s little much more you could ask for than that.
In recent years, the floodgates have been opened for new ways to monetize these apps, taking them from a “nice to have” accessory, to a “serious profit driver”.
Each UK mobile shopper spends on average just over £1,600 a year online and around £100 a year via smartphone
For now at least, a mobile app is a highly valuable brand asset that can be a means of generating customer loyalty & brand recognition. If you’re looking for more than that, here are 10 ways to help you monetise your app in 2014:
Offering a Paid App
This is perhaps the earliest means of app monetisation, although it has received its fair share of stick. The advantages being that it is very straightforward, and has quickly become replaced by “freemium apps”, or apps that are free to download, but limit certain content to in-store purchases.
In app advertising
This is one of the most popular monetisation methods chosen by app developers, it is straightforward and easy to implement, although has its drawbacks. Namely affecting on user experience, the tricky part is making sure you have enough fresh-engaging content to keep those users coming back, and clicking on those ads time and time again. Typically media based apps work best in this instance.
Local advertising/Geo targeted ads
Local advertising is becoming very big business on mobile. Research from Google suggests that 50% of consumers visit a store within a day of their local search. What business wouldn’t be attracted by this figure?
They aren’t suitable to the majority of businesses, but for those where they are, implementing an effective subscription-based strategy can be a highly valuable source of mobile revenue. A popular success story for mobile subscriptions is the Financial Times App, which receives 15% of its subscribers through mobile.
Push notifications are another very popular method of monetisation, letting customers know about special offers and new products, and because they display on the consumers home screen like a new text, it’s hard to miss..
In app purchases are becoming ever more popular, leading to a 56% year on year growth and making it one of the fastest growing monetisation strategies
. It’s expected that mobile retail alone will generate £5.8bn for the UK economy by 2016. With the right analytics in place you can study your users behaviour and make informed decisions as to what to sell more of, and how. Whether your app is specifically geared towards mcommerce or not, in app purchases can provide a highly targeted means of selling to pre-engaged users. For example they are browsing an app about sports, in which case sporting equipment could be sold alongside.
One of the most reliable & commonplace online monetisation methods. Affiliate earnings provide the flexibility for pretty much anyone, in any industry to earn from related products & services. In August 2013 Amazon opened up their associates programme to app developers, allowing say a fitness app to offer fitness gear and supplements, inside their app, and direct from Amazon. This works seamlessly with someone’s Amazon account through the Amazon API and opens up a whole new world of monetisation to app owners.
Thanks to super-fast 4G and HD screens video on mobile has been a huge success, some 40% of YouTube’s traffic now comes from mobile. Compared with just 25% last year. Which makes it little surprise so many internet marketers have predicted 2015 to be “the year of video”. Pretty much any business can utilise video in their content strategy and monetise with YouTube ads, for instance.
One thing is for certain, with mobile’s dominance over desktop and continued growth, the means in which consumers & businesses engage with these devices will continue to grow, presenting more opportunities for monetisation.