So you’ve built an app and even launched it successfully. Now, the money is just rolling in, right? Unfortunately, as most developers know, monetizing an app is a lot more complicated than that.
Today’s app market is overcrowded with more than 4 million apps available to consumers both on Google Play and App Store. And finding the right format for monetization — one that won’t negatively affect user experience or retention, but will also deliver high revenue — is more difficult than ever.
Once your app gets discovered, you need to keep users and not scare them away (ultimately sending them to competitors) with the monetization model you ultimately chose. And, like any other business, coming up with a solid method of turning a product into sustainable revenue is essential for app creators.
There are many moneymaking strategies for apps out there; the challenge lies in deciding which one works best for yours. But there’s good news for developers. A new form of monetization that puts user experience (UX) front and center with a user-centric approach is establishing itself as a next-generation player: in-app surveys.
Why ‘Mobile Ads Suck’ (and Probably Always Will)
In-app advertising is one of the most common ways to make money from an app because it’s effective. Although these ads drive revenue, they aren’t very popular with users.
The problem is, as Steve Jobs famously said, “Mobile ads suck!” — and most people agree: A survey of 5,000 mobile users found that 37.8 percent of them never want to be shown an ad while using an app.
So, while app developers and publishers continue to deliberate over which type of ad will best suit their apps — banners, interstitials, video ads, or offer walls — people are generally annoyed by the in-ad formats currently available.
Other ways developers monetize apps include leveraging user data, forging partnerships, and developing multiple in-app purchase options. Many combine more than one method, and choosing among them can be confusing, but the ultimate goal is to strike a balance between the need to retain users and the need to earn revenue.
Money making strategies like these may beef up the bottom line, but they also often compromise UX — which is why the emerging method of using in-app surveys is proving monetization and a great user experience can not only co-exist, but also thrive together.
How to Build a Better Revenue Stream
Market research surveys present a sound solution to the mobile app monetization conundrum. This method takes an interactive, user-centered approach. Instead of being bombarded with several ads or being forced to watch a video ad, users can have their say on a variety of interesting topics.
Surveys benefit everyone involved: developers and users, as well as the market researchers who pay to have their questionnaires included. Here are four reasons why:
1. No user interface changes are needed. Surveys present an attractive monetization strategy because they don’t require any changes to the app’s user interface. Surveys are included as an overlay, so users always remain in the app. And, unlike ads, surveys are never repetitive. Moreover, once a survey has been completed, users can continue using the app without further interruptions or distractions.
2. Surveys collect valuable data. Using a DIY survey tool, market researchers create surveys and designated target audiences. Then, thousands of mobile apps that have integrated in-app survey software development kit solutions distribute these surveys to their users and deliver real-time results to clients.
3. Payouts are higher. Marketers and brands place a high value on the data gathered by surveys, which means in-app surveys often pay app owners significantly more than traditional advertising. And surveys can be combined with ads or other monetization methods to make them an even more lucrative revenue source. Finally, they can use surveys to receive user feedback about their own apps — for free.
4. People actually like surveys! A recent survey of almost 1,200 app users showed that almost 84 percent of them preferred surveys to ads, and 37 percent rated their survey experience a 10 out of 10. Individual respondents also said surveys were more fun and interactive than ads and that they enjoyed having the chance to voice their opinions on products, sports, travel, food, and more. Another boon is that users have full control over whether to opt in or out, and they can complete surveys at their own pace.
In-app surveys bring something exciting and fresh to developers’ current monetization options. As the app landscape evolves, becoming increasingly sophisticated — and highly oversaturated — successful developers will look to next-generation formats to boost their monetization strategies without compromising UX.
In the future, we can expect this trend toward blended monetization models to continue, with in-app surveys as a common element running through all of them.
Andreas Vourkos is one of the founders and COO at Pollfish. He is a mobile enthusiast who is actively involved in the mobile apps world and interested in innovative products that can reach massive scale and improve the lives of millions.
Andreas is one of the founders and COO at Pollfish. A mobile enthusiast, actively involved in the mobile apps world, interested in innovative products that can reach massive scale and improve the lives of millions.
