There are many different ways to monetize your mobile application across various platforms. There are several popular models to choose from, including subscription services, in-app purchases, pay per downloads, the freemium model and advertising supported models. Each of these models generally falls into two broad categories: getting paid by your users or getting paid by advertisers for your mobile app content.
Focusing on app users, what types of content are they purchasing? According to a recent study, 24% of consumers purchase some form of app content, ranging in type from video, books, movies, TV shows, news, sports, magazines and newspapers. Consumers purchased this content via both native mobile apps and web mobile apps.
The pay per download model for mobile apps appears to be losing popularity, as only 14% of smartphone apps downloaded last year were paid apps. The rest of the apps were free apps. Android users have especially become overwhelmingly opposed to paying for mobile apps, with only 34% of Android users reporting having spent any money on smartphone apps over the course of the last 12 months. 70% of iPhone users reported paying for an app download over the past year.
These same content buyers were also more likely to view mobile advertising favorably compared to non content buyers. Not only do these users view the ads more favorably, but they are also more likely to take action based on these ads. In fact, content buyers indicated that they were twice as likely to take action based on mobile ads than general mobile users. More interestingly, iPhone users responded even better to mobile ads across the board. iPhone users viewed mobile ads more favorably and were more like to take actions based on mobile ads than Android users in the same categories.