How to Monetize Apps for Android – Vungle

January 31, 2022

everything you need to know about how to generate income from your android app portfolio.

When deciding how to monetize android apps, developers face a unique set of challenges and opportunities.

Reading: Monetizing android apps

On the one hand, the potential audience is huge. android claims the overwhelming majority of the operating system market share worldwide, a whopping 70%, so your app only needs to capture a small portion of the market to achieve a large volume of installs. There are currently 3.4 million apps on the Google Play Store, with another 100,000 being released every month. while that sounds daunting, it’s significantly less than the app store, so the competition isn’t as fierce.

If you can acquire a user base, it could all be for naught if you don’t monetize your app properly. Not all strategies work for all types of applications, so you can’t trust what has proven profitable for others. Read on to learn more about how to monetize android apps and determine which method makes the most sense for you.

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how to monetize apps for android in app purchases in app ad subscriptions best way to monetize apps on android

how to monetize android apps

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Most android apps are monetized using one or more of the following methods, each of which we’ll explore in more detail:

  • In-App Advertising: Users are shown ads for brands, products, services, or other apps through display, interstitial, or rewarded ad placements.
  • In-App Purchases: Users pay to purchase consumable or non-consumable digital goods, bind in-app currency, or upgrades that unlock additional features.
  • en – app subscriptions: users pay (usually) a recurring fee to access features within an app, such as a monthly membership to an online learning platform.
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Android has two distinct advantages when it comes to monetization. the first is its global reach. for example, 74% of the mobile market in south korea uses android, a figure that becomes more significant when combined with the fact that south korea experienced the world’s highest mobile gaming arpu in 2019 .

The second advantage is that android has fewer restrictions than apple. although it also has an apple-like feature that allows users to opt out of ad tracking.

the opportunity for financial success is there. here are your options:

in-app purchases

Over 97% of apps in the google play store are free. That doesn’t mean you can’t charge an upfront fee for your app, but it does mean it will be harder to convince your audience of your app’s value proposition. The advantage of so many free apps is that users are conditioned to expect the option to make in-app purchases. There are two main types of iaps:

  • Consumable: Consumables disappear after use, leading to repeat purchases. in-game currency is a typical example of a consumable iap.
  • non-consumable: non-consumables are one-time purchases that remain for the duration of the app but are not required for the functionality. a filter for a photo app or more storage are examples of non-consumable iaps.

in-app ads

In-app ads are perhaps the most recognizable and familiar form of app monetization, and there are a variety of options to choose from, including traditional mobile formats like banners, interstitials, and videos.

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With its origins in desktop web advertising, banner ads are a tried and true format. Thanks to their small size, banner ads work well in subtle, non-disruptive placements, where publishers can earn consistent revenue through a volume of impressions. Publishers who adopt this format also unlock a lot of programmatic demand, which can be the key to achieving consistent fill rates.

Beyond banners, android publishers can also access cutting-edge formats like rewarded videos. If your app has a virtual economy, rewarded ads are a natural choice. Users prefer rewarded video to traditional video, and when combined with a comprehensive IAP strategy, the format has demonstrably bolstered IAP revenue. Another novel ad format is the playable ad, which emulates game/app functionality to give users a sneak peek of what to expect. over the years, it has also proven to be profitable for publishers.

rewarded ads are not exempt from restrictions. Apple prohibits ad placements that encourage installs. This is where Android’s more open platform becomes advantageous. android has no such restrictions, making such formats viable and highly profitable options for app monetization.

An important consideration for publishers is that Android devices come in all shapes and sizes, so it’s critical that you consider how your ads will be displayed. One way to achieve consistency is through vungle’s adaptive creative. adaptive creative works analyze creative elements and automatically reconfigures them to fit the ux placement. vungle editors have seen a 7-12% increase in overall performance and higher cpms through this strategy.

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Subscriptions are a thriving app monetization model across all genres. 91% of non-game consumer spending on the Google Play Store in 2019 was driven by apps with subscriptions. Music apps like Spotify are released daily more than any other type of app. you have two options when it comes to subscriptions:

  • auto-renewing subscriptions: netflix’s monetization model is a great example of an auto-renewing subscription. the consumer pays a monthly fee for access to the application. this type of subscription may also have pricing tiers that offer different benefits, such as access to ad-free viewing.
  • non-renewal subscriptions: the user pays a one-time fee for an amount set of content that is released over time, such as a season of television programming or planned game expansions. a new set of content would require a new subscription. The Clash of Clans Gold Pass, for example, gives subscribers better rewards for Season Challenges during that season, but must be renewed for subsequent seasons.

the best way to monetize apps on android

Launching your android app with the wrong monetization strategy can cost you valuable time and of course revenue. vungle has over a decade of experience in the mobile space and understands the nuances of its economic infrastructure. we customize monetization and advertising solutions to complement your user experience and give you the highest possible return on investment. ready to learn more? contact us today.

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