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Home»Technology»The Changing Landscape of App Monetization: 8 Trends to Watch
Technology

The Changing Landscape of App Monetization: 8 Trends to Watch

Michael JenningsBy Michael JenningsNov 29, 2023No Comments6 Mins Read

The Changing Landscape of App Monetization: 8 Trends to Watch

The business of mobile apps is undoubtedly huge right now. But since the industry is still relatively young, it tends to change quickly, with everyone still figuring out the right way to succeed. For anyone with a mobile app, it’s critical to either be a trendsetter or keep up with the latest trends as much as possible to avoid being left behind, especially when it comes to monetization.

After all, apps are always looking for ways to maximize their revenue. With that in mind, let’s take a closer look at some of the biggest trends to be aware of in the changing landscape of app monetization.

Contents hide
1 Monetization Tools
2 Mixed Monetization
3 Immersive Advertising
4 Connecting People
5 Gamification
6 Loyalty Programs
7 NFTs
8 App-Bidding Model of Advertising

Monetization Tools

Slowly but surely, monetization tools are being developed to help apps generate revenue in new ways. They may not necessarily eliminate more established forms of app monetization, but they surely help to create new avenues and options. With a top-notch monetization tool, app users won’t even notice that the app is utilizing a tool.

However, they may notice that they aren’t looking at as many ads being prompted for in-app purchases quite as often as good monetization tools can help make app developers less reliable on those traditional revenue streams.

Mixed Monetization

Along those same lines, mixed monetization will likely continue to grow in popularity moving forward. It doesn’t make sense for apps to put all of their eggs in one basket as far as revenue streams are concerned. While newer apps may not have that option, more established apps are more likely to have choices, which is why they are starting to move into mixed monetization.

This allows them to make money from ads, subscription services, in-app purchases, and several other revenue sources at the same time. Regardless of the app or the primary source of revenue it used in the past, hybrid monetization is on the rise.

Immersive Advertising

The more technology improves, the more creative mobile apps can get with advertisements. This has opened the door for more immersive advertising that can engage with viewers in a way that past types of ads haven’t been able to do.

The capabilities of today’s technology have created ads that are closer to entertainment than advertisements. The more apps are able to blur this line, the easier it is to share these types of advertisements with the user base of that app while generating revenue from this type of ad.

Connecting People

There should be no doubt that the most popular platforms in today’s world are those that connect people with one another. Think about apps like YouTube, Instagram, or TikTok. They all allow users to share content that helps connect them with like-minded people.

The fact that these are the most popular types of apps should tell other mobile apps a lot about the best way to attract more users and generate more revenue. In other words, integrating social media and content sharing are two things that more mobile apps should be doing.

Depending on the app, it’s not always going to be obvious or straightforward how that can be done. However, the most popular apps have obviously found a way to generate massive amounts of revenue with platforms based around connecting people. Therefore, this is a trend that more mobile apps should be exploring to help with their own monetization methods.

Gamification

Along with social media and content sharing, gaming has always been a great revenue driver. Mobile gaming downloads are approaching 100 billion per year, so this trend is going strong. Even TikTok moved into the gaming space. If they choose to do that, gamification is clearly a trend that other mobile apps should try to replicate.

Again, not every app is going to have a clear and obvious path to move into this space. But there should be ways that most apps can add elements of gamification and fun as a way to diversify the way the app is monetized and utilized. Obviously, this doesn’t mean that every app has to get on board with gamification. However, there is no denying that this is a trend in mobile apps that grows bigger each year.

Loyalty Programs

It goes without saying that mobile apps are trying to generate loyalty among users. Naturally, that has led to the rise of loyalty programs. Obviously, mobile apps need to have a certain number of users before starting a loyalty program. They also need to take the time to do it right and make the program worthwhile for users.

But there’s no question that a good loyalty program can improve engagement and reputation. After all, most people are looking for ways to find deals and save money. This means that most people are open to programs that provide rewards in exchange for loyalty, which is why loyalty programs are increasing in popularity. Mobile apps just have to make sure the programs are seamlessly built into the app and provide users with enough bang for their buck.

The Changing Landscape of App Monetization: 8 Trends to Watch

NFTs

The world seems to be obsessed with NFTs nowadays, which is why mobile apps are incorporating NFTs and the blockchain more and more into what they do. Mobile apps of all kinds, especially mobile games, have started to incorporate their own NFTs into the user experience. Users have started to identify the value of this because all NFTs have monetary value.

Of course, app developers are still able to control how NFTs are developed and distributed, which means the monetization aspect of NFTs remains in their control. Given that level of control, this has become a growing trend that more apps will likely experiment with moving forward.

App-Bidding Model of Advertising

Finally, one trend that seems to be moving in the opposite direction and disappearing is the act of waterfall bidding. The system of finding the first ad network that fits into the price point is inherently flawed. It’s bad for advertisers and leaves potential revenue on the table for mobile apps. As a result, this type of advertising is going away in favor of the in-app bidding model.

This type of system always goes to the highest bidder, which is always going to be what’s best for mobile apps and advantageous for advertisers as well. Fortunately, the practice of waterfall bidding has been eliminated for the most part. However, if there are any mobile apps still practicing this, it’s time to move away from it and get on board with the app-bidding model.

Michael Jennings

    Michael wrote his first article for Digitaledge.org in 2015 and now calls himself a “tech cupid.” Proud owner of a weird collection of cocktail ingredients and rings, along with a fascination for AI and algorithms. He loves to write about devices that make our life easier and occasionally about movies. “Would love to witness the Zombie Apocalypse before I die.”- Michael

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