Top Monetization Strategies for iOS Apps

Businesses run on profits. In retail, you make profits by selling goods, in logistics, you make profits by delivering goods, and in finance, you make profits by making good returns on investments( ROIs) for the clients. 

By talking about profits and revenues, we mean to highlight that when you run a business, one of the most important goals is to generate revenue and make profits. 

Similarly, it goes with the iOS apps. If you own iOS apps, you must generate revenue from them. But how? By monetizing them! But monetization is not as simple as it seems. It requires building and implementing the right monetization strategy to ensure your iOS app generates maximum profits/revenue.

Considering the statistics that the App Store generated approximately $24.6 billion through monetized apps, it is evident that iOS has immense potential to benefit businesses in terms of profits.

However, the only thing you need to do is to plan the right monetization strategy

There are several monetizing strategies for iOS mobile applications. In this blog, we will talk about these top monetization strategies and determine which one is ideal for you. So, let’s get started! 

Top iOS App Monetization Strategies for Maximizing Revenue 

To generate revenue from iOS mobile applications, you need to use the best monetization strategies and implement them right. Below, we have mentioned the proven strategies for monetizing apps built for the Apple ecosystem. 

1. In-App Purchases (IAPs)

In-app purchases (IAPs) are one of the most common monetization strategies used by businesses to generate revenue from iOS applications. 

In this, businesses sell additional items in the app which may be required by the users to use the app to its full potential. 

It may include consumable items, such as coins, credits, extra lives in games, etc, and non-consumable purchases like premium features, ad-free versions, or additional tools in the app. 

Benefits of Using In-App Purchases  

The IAPs (in-app purchases) bring the following benefits to the table. 

1. Higher User Engagement: iOS users get additional items to buy. This keeps them engaged with the app for a longer time and increases user engagement. 

2. Flexibility: With in-app purchases, you can offer users the flexibility to use the core app for free, and commit to any kind of payments later. 

3. Scalability: As you add more purchasable content to your app, the more its potential to scale increases, as users prefer to use those apps that provide valuable content. 

Best Practices to Get Results from In-App Purchases in iOS Apps 

Here are the best practices for successfully implementing in-app purchases (IAPs) in iOS mobile apps. 

1. Provide Value: Users will spend their money only if you provide them with something valuable they feel worthy to purchase. 

2. Use Clear Pricing: Always be transparent about costs so that users can clearly know what they are paying for, and avoid unexpected charges. 

3. Respect User Experience: Never make users feel pressured or required to make purchases to use your app. 

2. Freemium Model

Another popular monetization strategy for iOS app development is the freemium model. In this strategy, users can install and use your app for free with the basic features. 

Furthermore, to unlock its premium version, users need to pay, either the one-time charges or the subscription fees. 

Benefits of Using the Freemium Model  

The benefits of using freemium models for monetizing iOS apps are as follows: 

1. More Users On-Boarding: With freemium, users can still download the app and access its basic features. This contributes to onboarding more users and increases visibility. 

2. Higher Conversion Potential: If your users appreciate the value your app provides, there are higher chances that users will pay for the premium version. 

3. Flexibility: the freemium model can integrated into a variety of iOS mobile applications, ranging from gaming to productivity. 

Best Practices to Get Results from the Freemium Strategy 

Here are the best practices to follow to get the desired results from the freemium monetizing strategy. 

1. Balance Free and Premium Features: You need to offer enough features in the basic version to engage users and carefully reserve valuable features for the users who are paying for the app. 

2. Optimize the Upgrade Experience: Upgrade the premium features seamlessly, and educate users on how these can enhance their experience. 

3. Respect User Satisfaction: You can provide free trials of premium features to free users so they can experience what they get if they pay. Also, if you restrict paid features to premium users, it can frustrate the basic users, and reduce retention. 

3. Subscription Model

The subscription model for the iOS applications is one of the proven monetizing strategies that allow businesses to offer their app content and services and in return get recurring payments. 

In the subscription model, users can access both basic and premium features of the app, after they buy the subscription, which can be monthly, weekly, yearly, or any other custom period. 

The subscription monetizing models work well, particularly for apps that offer continuous value. 

Benefits of Using Subscription Strategy for iOS Apps 

The following are the advantages of implementing the subscription model for iOS applications. 

1. Steady Revenue Stream: The subscription model helps businesses create recurring revenue which is more reliable than one-time purchases. 

2. Increased Customer Lifetime Value (CLTV): If a user subscribes to the app, it stays intact for over a while. This helps businesses maximize the revenue generated from each user. 

3. Deeper User Engagement: Regular subscription payments often lead to stronger commitment and loyalty, as users aim to make the most of the money they spend on the iOS app. 

Best Practices to Get Results from Subscription Model for the iOS Apps

Follow these best practices to get results from the subscription model: 

1. Offer a Free Trial: Offer free trials for your application to motivate users to buy the subscription.   

2. Provide Clear Value: You need to ensure that your iOS app is valuable enough to justify the subscription. 

3. Retain Subscribers with Consistent Updates: Lastly, you must regularly update the app with fresh content and improved functionalities to keep the subscribed user engaged for a longer period. 

4. Advertisements 

Advertisements, also known as ad-based monetization, help businesses make revenue by displaying advertisements within their apps. This strategy is widely used, especially for free apps, as it provides a steady income without requiring users to make direct payments. 

Businesses, with the help of iOS mobile app developers, integrate advertisements within the app and earn revenue based on different models, such as Pay-Per-Click (PPC), Pay-Per-Impression (PPI), or Pay-Per-Action(PPA). 

Moreover, app owners partners with ad networks, like Google AdMob or Facebook Audience Network, that handle ad placements, targeting, and payments, simplifying the advertisement processes. 

Benefits of Using Advertisements Strategy for iPhones 

Here are the advantages of implementing an advertisement monetization strategy for Apple devices. 

1. Accessible Revenue Stream: Advertisements are one of the user-friendly strategies that allow businesses to earn revenue without charging users. 

2. Scalability: The revenue potential can be increased, because advertisers can charge more if more users engage with ads. 

3. Flexibility: App owners have the freedom to experiment with different types of ads and their placements, so they can find the most effective ad displays. 

Best Practices to Get Results from Ad-Based Monetization Strategy 

Follow these practices to get the best results from the advertisements for your iOS apps. 

1. Maintain a Balance: You need to display ads in moderation. Excessive advertisements can disturb users and result in increased app churn rates.

2. Use Relevant Ads: You must show relevant ads to users otherwise only a few people will engage. You can use ad networks with targeted ads to improve engagement. 

3. Offer an Ad-Free Option: You can also offer an option to pay for an ad-free experience. This will give users control of their experiences, and help you make additional revenue. 

5. Sponsorship and Partnerships

Sponsorships and partnerships are other ways that businesses can use to generate from iOS mobile applications. In this strategy, app owners promote other businesses’ products and services within the app. 

Brands provide sponsored content, such as articles, videos, or tips, within the app, aligning with the audience’s interests. Moreover, some integrate branded features or exclusive offers for a sponsor. 

Benefits of Using Sponsorships and Partnerships Strategy for iOS App Development 

The following are the benefits of implementing sponsorships and partnerships monetizing model. 

1. Additional Revenue Stream: By implementing sponsorship in the iOS apps, businesses can create an alternative income source, and reduce their dependency on direct payments from users or ads.

2. Enhanced User Experience: When well-integrated, sponsorship and partnerships can add value, like exclusive discounts, special offers, or helpful resources, that can enhance user experiences.  

3. Brand Association: When you partner with reputable brands, your iOS app’s credibility will increase significantly among the audiences. 

Best Practices to Fetch Desired Results from Partnerships and Sponsors 

The following are the best practices to follow while using sponsors and partnerships monetizing model. 

1. Choose Relevant Brands: You must always select relevant sponsors whose products or services align with the app’s audience to ensure the partnership feels authentic.

2. Prioritize Value for Users: You must ensure that the sponsored content or features provide genuine benefits to your users and enhance their experiences. 

3. Maintain Transparency: Lastly, always communicate to users that the content or features are sponsored. This transparency strengthens the relationship and builds trust. 

6. Data Monetization 

Data monetization does not directly aim to monetize iOS mobile applications, but it is related to generating revenue from the apps. 

In this strategy, app owners collect users’ data, share it with other businesses for purposes like researching, analyzing market trends, gaining insights into user behavior, and more, and in return, businesses pay the app owners. 

Of course, app owners take users’ consent and permissions before collecting and sharing the data. 

Benefits of Data Monetizing Strategy for iOS App Development 

The following are the advantages of implementing data monetization for iOS apps. 

1. Additional Revenue Stream: Data monetization allows app owners to earn revenue by sharing the users’ data. In this, users do not directly pay but give permission to collect and share their data.  

2. Enhanced App Improvement: Insights gained from collected data can provide insights into how users use the app, and help app owners make data-driven improvements that enhance user experiences. 

3. Appeal to a Wide Range of Industries: Many sectors, such as healthcare, finance, retail, and others, find anonymized data valuable, giving app owners a proven chance to earn income. 

Best Practices to Gain Desired Results from Data Monetization 

Here are some of the best practices that app owners must follow to get the desired results from data monetization. 

1. Respect Privacy and Compliance: If using the data monetization strategy, businesses must follow all relevant data privacy laws, like GDPR and CCPA, to protect user information and avoid legal issues.

2. Gain Explicit User Consent: App owners must Inform users about data collection practices upfront, and ask for permission before sharing data, fostering transparency and trust. 

3. Aggregate and Anonymize Data: You must protect your users’ privacy by fully anonymizing and aggregating data, so it becomes difficult to trace back to individual users. 

Read More: How to Monetize Health and Fitness Data

Comparison of Top Monetizing Strategies for the iOS Mobile Applications 

Below, we have compared the top monetization models for iOS mobile apps. Explore and choose the rights that align with your requirements. 

Benefits of Monetizing iOS Mobile Applications and Software 

The following are the advantages of monetizing iOS apps and software. 

1. Revenue Generation

The obvious benefit of monetizing iOS apps and software is revenue generation. 

By implementing top iOS app monetizing models, businesses can get a steady income stream, allowing them to sustain and expand, without relying on funding from external sources. 

2. Enhanced User Engagement

Another benefit of iOS app monetization is that it can increase user engagement. Monetization methods, such as freemium and in-app purchases, offer additional features, content, or rewards, that motivate users to use the app for a longer period. This leads to higher retention rates, reflecting the signs of a successful iOS app. 

3. Higher Customer Lifetime Value (CLTV)

By monetizing iOS apps, businesses can boost customer lifetime value. By implementing recurring payment methods like subscriptions and repeat purchases (like consumables in games), app owners can make users spend money again and again while using the app. Ultimately, this will result in maximizing revenue generated per user. 

4. Attracting Investors  

An iOS mobile app with a clear and profitable monetization model is more appealing to investors as it shows its potential for sustained revenue and growth. 

This will attract investors who are looking to get higher returns on investments (ROIs) and more likely make them offer funding for further development, marketing the app, and other purposes. 

5. Funding App Improvements

Monetizing iOS apps will bring money to the table. You can reinvest it for improving the app, such as adding cutting-edge technologies like artificial intelligence, integrating features, fixing bugs, and releasing the latest updates. 

When you keep upgrading your iOS application, it will engage users, improve their experience, and keep your app competitive in the market, contributing to its long-term success. 

Future Trends in iOS App Monetization

Now, let’s explore what trends coming next for the iOS app monetization 

1. AI-Driven Personalization

App owners have started realizing the importance of personalization for business success. 

Therefore, they have started leveraging machine learning to analyze user data and tailoring advertisements, in-app purchases, and premium content, that highly resonate with the users. 

When users like the app’s content, they spend more time and money on the iOS app. 

2. Subscription Bundles 

The rise of subscription bundles will enable users to more iOS apps under a single subscription pack. 

App owners having multiple iOS apps can create a single subscription pack that provides access to all of them. Moreover, app owners can partner with other businesses to provide several apps under one pack. 

This will enhance collaboration between app owners, and help them gain more users. 

Conclusion

Monetizing iOS apps can do wonders for your business. It not only brings revenue for you, but also helps you enhance user engagement, attract investors, and increase customer lifetime value. 

For monetizing iOS apps, you can implement models, ranging from in-app purchases to data monetization. Also, you can combine several strategies to increase the streams for revenue. 

However, implementing these monetization models requires deep research, knowledge, and experimentation. 

Thus, we advise you to reach out to Quytech, the top mobile app development company, that has helped numerous clients with monetizing their iOS apps and software successfully. For more information, please visit our website www.quytech.com