Best Practices for Mobile Monetization
To provide information on the best practices followed by a company for mobile monetization, including a brief introduction of the company and information on how the company is leveraging the best practices.
Mobile monetization refers to the tactics and methods that apps apply to produce revenue in the form of advertising, sponsorships, and in-app purchases. It is also called app monetization.
Mobile Monetization Best Practices
1. Spotify's Freemium Model
- Spotify is a digital service that provides access to songs all over the world. Spotify's app is available on Google Play and the App Store.
- Freemium model is one of the best practices for mobile monetization as it is an emerging trend and many notable companies have started to use this model. Some companies using this model include Spotify, Adobe, Dropbox, VSCO, and Nike Training Club.
- Freemium apps are those apps that offer some basic features for free. However, the premium features can only be unlocked after subscribing to the premium model at a certain price. According to an article on Clever Tap, 94% of apps follow this practice.
- Most of the apps usually tend to drive 2%-5% conversion rates using this model. However, Spotify converts 42% of its freemium members into premium subscribers.
- Constant A/B testing, experimentation, and user data-focused analysis have helped Spotify in developing a top freemium monetizing model for its app.
2. VSCO's In-App Purchases Model
- VSCO is a photo and video editing app that offers different tools, spaces, and connection. The app is available on Google Play and the App Store.
- In 2018, in-app purchase was considered to be the best practice for mobile monetization as it was the best source of revenue for mobile apps. This model allows users to purchase special features, services, or content within an app.
- VSCO is available for free. It has more than 30 million active users.
- The app offers in-app purchases of photo presets that "cost between $0.99 and a few dollars" to its users. In-app purchases have helped the company to become successful.
- The app also uses the freemium model to drive revenue.
- Other best practices include in-app advertising, paid apps, subscription models, and affiliate marketing.
- The apps usually use a mix of the aforementioned best practices to drive better revenue. For example, VSCO uses both freemium and in-app purchase models.
- In addition to this public search, we scanned our proprietary research database of over 1 million sources and were unable to find any specific research reports that address your goals.
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