If you have a mobile app that is not generating enough revenue, you might feel frustrated and discouraged. However, there are some steps you can take to improve your app's monetization and increase your earnings. In this article, we will discuss some of the common reasons why your mobile app revenue is low and what you can do to fix them.
The first thing you need to do is to understand how your app is performing in terms of downloads, retention, engagement, and revenue. You can use analytics tools like Google Analytics, Firebase, or App Annie to track these metrics and identify any issues or opportunities. For example, you might find out that your app has a high churn rate, meaning that users are uninstalling it soon after downloading it. This could indicate that your app is not meeting their expectations, has technical problems, or has poor user experience. To solve this, you might need to improve your app's quality, design, functionality, or marketing.
Here’s a structured approach to analyzing your app's performance to understand why revenue might be low: ?? Active Users: Analyze the daily, weekly, and monthly active users. A drop in these numbers can directly impact revenue. ?? Session Length: Short sessions may indicate a lack of engaging content or poor user experience. ?? Retention Rates: Examine user retention over specific intervals (e.g., 7-day, 30-day). ?? In-App Purchases: Track what is being purchased and at what stage in the app users tend to make purchases. ?? Subscription Metrics: If applicable, check subscription renewal rates and reasons for churn. ?? Ad Revenue: For ad-supported apps, assess ad impressions, click-through rates, and overall ad effectiveness.
To address low mobile app revenue, you can leverage Google Analytics and Firebase for comprehensive monetization testing. Google Analytics provides insights into user behavior, helping you understand how users interact with your app and identify potential revenue bottlenecks. Firebase offers robust analytics capabilities, allowing you to track revenue metrics such as in-app purchases, ad revenue, and subscription growth. By analyzing these metrics, you can identify areas for improvement & optimize your app's monetization strategy. Additionally, conducting A/B testing using Firebase Remote Config enables you to experiment with different monetization methods and user experiences to determine the most effective approach for maximizing revenue
If mobile app revenue is low, there are several strategies that can consider to improve it. Analyze User Feedback Optimize Monetization Model Improve User Experience Expand Target Audience Promote Your App Discount Vouchers and Offers User retention strategies By implementing a combination of these strategies and continuously iterating based on user feedback and data, you can work towards improving your mobile app revenue over time.
Another factor that affects your mobile app revenue is how your app is presented on the app store. You need to optimize your app store presence to attract more users and convince them to download your app. This includes creating a catchy and relevant app name, icon, description, screenshots, and video. You also need to use keywords that match your app's features and benefits, as well as your target audience's needs and preferences. Additionally, you need to encourage your users to rate and review your app, as this can boost your app's visibility and credibility on the app store.
When I was developing a productivity app aimed at helping users manage their tasks more efficiently, I realized the importance of optimizing our app store presence early on. Despite having a well-designed and functional app, our initial downloads were underwhelming. App Store Optimization (ASO) Attractive Visual Assets Clear and Concise Description Regular Updates and Maintenance Engage with Users By implementing these strategies, we saw a significant improvement in our app store presence and user engagement. Our app started appearing higher in search results, and we received more downloads and positive reviews.
It's always a good idea to have a sense about the average impression/download rate for an app like yours. Talk to your most loyal users, understand what drives them to use the app repeatedly, incorporate the most common use cases into different custom product pages. The variables with highest conversion rate should give you the best ideas to craft your default page as well.
One of the most important decisions you need to make is how you will monetize your app. There are different monetization strategies that you can use, such as in-app purchases, subscriptions, ads, freemium, or paid apps. Each strategy has its own advantages and disadvantages, depending on your app's type, genre, target market, and value proposition. You need to choose the strategy that suits your app's goals, user behavior, and revenue potential. You also need to test and tweak your pricing, offers, and incentives to maximize your conversion and retention rates.
I often see the same mistakes when developers choose monetization strategies for their mobile apps. A critical oversight is not closely monitoring the conversion rate within the payment funnel. The user's payment experience can drastically affect conversions—differences can be as stark as 20-fold between a smooth and a poor payment process. Telco payments, in particular, are frequently neglected despite their potential. For instance, in emerging markets, apps leveraging telco-based payments have seen substantial boosts in user accessibility and revenue. Testing and challenging your chosen payment method are essential to optimize earnings and enhance user satisfaction.
To select the right monetization strategy for your mobile app, consider factors like your app's purpose, audience, and market trends. Options include in-app purchases for virtual goods or features, subscriptions for premium content, ads displayed within the app, a freemium model offering both free and premium versions, in-app advertising like sponsored content, affiliate marketing by promoting others' products, and data monetization through anonymized user data. Choose a strategy that fits your app's value and audience, and don't hesitate to experiment with different approaches to find what works best.
We needs to implement one-time purchase model to a freemium model with in-app purchases. So the core features of app free to download and use, allowing users to get a feel for its functionality without any upfront cost. Then introduce premium features, such as advanced task management tools and customization options, which could be unlocked through in-app purchases. To promote the premium features, implemented a targeted marketing campaign within the app, showcasing the benefits of upgrading to the premium version. Also offered limited-time discounts and special promotions to incentivise users to make in-app purchases. As a result of these changes, we observed a significant increase in both app downloads and revenue.
Even if you have a great app with a solid monetization strategy, you still need to promote it to reach more users and generate more revenue. You need to implement effective marketing campaigns that can increase your app's awareness, downloads, and engagement. You can use various channels and methods, such as social media, email, blogs, podcasts, influencers, press releases, or app store optimization. You also need to segment your audience and tailor your messages and offers to their needs and interests. Moreover, you need to measure and optimize your marketing performance and ROI using tools like Google Ads, Facebook Ads, or Appsflyer.
"If the product is good enough, it won't need any marketing" mantra doesn't work for mobile apps. You don't need to pay for clicks via ad networks, but you definitely need to pay a certain price anywhere to acquire users. A great web to app funnel might be expensive but highly effective marketing strategy, while same app may get unmanageable cost per installs on a traditional ad network.
The question sounds too general and no way of monetization is specified. Therefore it is worth structuring what to do in different cases. I would start with analyzing the audience of this app and user insights. Provided there is already an audience and there is a good retention rate. How often core users come back and use your service, for example. If they come back often and using the app is important to the users, then you can introduce subscription-based monetization. It's also always worth understanding how your competitors monetize. But not to do exactly the same, but to understand how you can win in convenience and usefulness compared to them. And only then decide on the monetization method and the cost for users.
Finally, you need to keep an eye on the new opportunities and trends that can help you grow your mobile app revenue. You need to research your competitors, your industry, and your users to find out what they are doing, what they want, and what they expect from your app. You also need to experiment with new features, content, or partnerships that can add value to your app and enhance your user experience. Furthermore, you need to leverage new technologies, platforms, or markets that can expand your app's reach and potential. For example, you might consider integrating your app with voice assistants, wearable devices, or emerging regions.
Diversify Revenue Streams: Consider alternative revenue streams such as subscriptions, sponsorships, or premium content to supplement existing monetization methods.