If there's one thing that the last year has shown us, we are currently experiencing significant global financial headwinds. As a result, prices are up, and the cost of debt is more expensive than at any point in recent memory. The state of the economy has many business owners worried about maintaining their companies without significant changes to app monetization strategy.
Inflation is rampant, and layoffs are happening everywhere, so how can companies protect themselves and continue to grow in this climate?
While many businesses are trying to figure out how to face this crisis, one group that may have fewer issues is app developers. About 71% of Boards of Directors for various companies are looking to push into a digital economic architecture for the upcoming year. Increased digital architecture could mean a considerable economic boost for those in the mobile app realm.
As these companies will likely use mobile apps to continue generating revenue, it's best for them to learn how to grow their companies more efficiently. So let's look at how app publishers can ensure their free apps stay functional, generate revenue, and remain thriving.
So, what can those on the marketing side of the app industry expect in the coming year? During the COVID pandemic, app owners saw an increased need for escapism, entertainment, and engaging mobile experiences. With everything that's transpired with the economy since then, there will need to be changes in how app developers handle their marketing strategy.
Media investment firm Magna revealed that their US advertising growth prediction would only be around 4.8% for 2023, so marketers should plan accordingly. Running a business in the time post-COVID hasn't been easy for anyone. Across every industry, there has been a marked decrease in all areas of spending, including marketing.
Marketers will need to make changes to match current events. They need to shift their focus to retaining their loyal users' long-term while increasing engagement.
One barrier that many marketers will face is having lower budgets to work with for the year. The goal will be learning, implementing, and iterating app monetization models efficiently to adapt to changes in 2023. They will need to know how to produce the same great results with a smaller budget.
Marketing teams need to push for greater employee creativity in the execution and delivery of the services the users expect. Here are other ways that the 2023 economic situation will impact marketing teams:
Another part of the budget cutbacks will come from smaller marketing teams. Marketers are already struggling to find top talent, but in a HubSpot report, 43% of these companies say that hiring will be paused for up to six months this year. Instead, companies will try to place the better quality employees they still have on projects, eliminating unnecessary spending on the employee front.
Marketing departments can count on companies and the public still expecting top results, even with limited resources and staffing. While the acquisition may not be the main goal for their free app, retaining current app users will be paramount to weathering the economic storm. The pressure that comes with this will require finesse and patience.
In 2021, Apple's latest upgrade to the operating system allowed users to maintain their privacy by removing the data harvester's ability to track them in the iOS apps they use. So apps from the Apple app store make it difficult for businesses to monetize effectively.
These privacy laws mirror the EU's GDPR policy. These policies are designed to protect a wide variety of personal data from users to ensure their identities and information are kept safe. Such updates take a massive chunk of a digital company's app revenue away, approximately $10 billion in Facebook's case, due to the loss of cross-app tracking.
We don't know what the future will bring, but the outlook of potential recession has many businesses worried about spending money on their monetization strategy. While not a certainty, a recession is 61% likely, according to a Wall Street Journal survey. Economists expect GDP to stagnate this year, while the WSJ only predicts a 0.4% GDP growth in 2023.
What do all of these changes mean for any popular app monetization strategy? While all the signs may point to hunkering down and turning off the marketing "tap," so to speak, cutting ad spend is typically not a good idea.
It just means that as a marketer, you must focus on staying at the forefront of people's minds, even as their spending slows down. Remember, recessions are temporary and your app monetization model must support long-term growth while still maintaining profitability.
Amidst the economic uncertainty, it's vital to be tactical when monetizing your mobile applications. Investing in digital opportunities will ensure that you maintain and increase app profits while promoting growth.
By staying flexible and open to change, you can ensure your business continues to evolve and grow. Investing in new technologies is one of the best strategies to ensure that happens. That way, you'll have a stable platform from which innovation can occur-leading directly to increased profit margins.
By incorporating new data-collecting methods into your app monetization method for your app, you will be able to enhance its performance. Whether it's a paid app or not, enabling it to function better and appeal to a larger audience.
Don't be overwhelmed by the uncertainty of today's times; take proactive steps to ensure mobile app monetization success with these strategies.
Considering the current circumstances, it's prudent to take a step back and guarantee that your application and the in-app advertising are relevant and attractive to your desired demographic. Many people have modified their daily practices - including how they utilize social media, allocate their funds, or spend leisure time. As an app developer, you should closely monitor these trends to discover how to profit from them.
With in-app purchases, your users can access more exclusive content and features. For this reason, the purchasing process must be as straightforward as possible for a successful outcome. The easier you make it for them to commit to an in-app purchase, the greater their chance of making the purchase and increasing retention rates if they are satisfied with what they bought.
Maximize your advertising profits by using in-app advertisements tailored to your target audience. You must carefully choose the type of products and services offered to not overwhelm or deter users from engaging with them. Focus Ads on coupons, discounts, and limited offers to increase user interaction with them.
Additionally, try not to rely too heavily on one Ad source; diversifying your sources and networks can help you attract various users. You strategy shouldn't just stick with mobile app banner ads. Mobile app advertising works better when you use a combination of different in-app ads like:
By finding this balance, you'll generate Ad income while providing a user experience that will encourage them to return.
Streamlining your app with user-friendly features and efficient setup and operational tools is an important way to optimize cost savings. Utilize comprehensive management systems for a smooth installation process and more--it'll be worth the effort.
Economic uncertainty doesn't have to be a roadblock to progress. To maintain your app's and company's growth, you must take calculated risks and continuously push forward with a proactive mindset. Find creative solutions to help prepare your team for larger leaps in the industry.
You may even need to try a different app business model and switch to offering paid apps. While there aren't as many paid apps in the app stores, many gaming apps are either use the freemium app monetization model or are available for low cost.
Embrace this period of economic transformation by collecting diverse data from your app users. Examine how their engagement habits have evolved and use these lessons to inform your decisions. As you collect more data from your user base it may make sense to utilize different app monetization methods.
To effectively gain understanding, you must employ first-party data. This encourages an atmosphere of trust between the user and yourself by allowing them to offer their information freely with rewarded surveys.
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With the help of advanced AI technology, our platform offers valuable insight and monetization opportunities to create the perfect surveys for your app's users. Such superior-quality data can also improve your business's growth and profitability during recessionary times. Our software uses the free version of your app and turns your subscribers into paying users.
In addition, securing your app's monetization strategy is vital to stay one step ahead of the competition.
You can ensure that your mobile application generates income by effectively leveraging tactics like rewarded surveys, in-app purchases, and utilizing firm data. At the same time, these tactics will keep your business at the forefront of its industry and in your consumer's minds.
Harness the power of inBrain.ai's insights to illuminate your business through engaging online surveys. Use those surveys to acquire invaluable data that will show you how to keep customers returning for more.