Last Updated on March 8, 2022
Creating CTV apps has become popular among content creators nowadays, especially as CTV is in its prime and people are trending towards accessing their favorite content on-demand. How can a creator earn money with an app? Let’s review the most popular methods that work.
Connected TV monetization: what developers should know
There are several main app monetization methods creators may use to receive a proper return for their efforts. The most popular ones are subscriptions, advertising, and in-app purchases. The particular method you choose for your application will depend on, of course, on your preferences, needs, and goals.
The easiest and most common way of making your CTV app generate money is to integrate advertisements. For instance, you might show interstitial ads, videos, and even interactive ads, or even sponsorships. Advertising can work well because setting it up requires minimum effort on your part and can start generating revenue immediately and can bring money from the start. Among the peculiarities to be mentioned: you need a really wide audience to monetize your app.
Subscriptions function like streaming platforms – users pay a monthly recurring fee to have constant access to your content. If you have a devoted fanbase and viewership, subscriptions may offer a way to generate a stable, regular income – assuming you can consistently turn out premium-quality content worth paying for. And that’s the rub core – the content available via subscription really needs to be high quality to convince users to keep renewing.
You can also sell something within your app, e.g. if it’s a game, you can offer virtual currency for sale, or monetize in-game cosmetics. What’s good about this method is that you give users a choice – they can continue using your app with no limits, but if they want to get some unique benefits, they can do it for money. It’s a low-risk monetization method that has proven its efficiency via dozens of other games. If you offer video content, in-app purchases can allow viewers to buy merchandise, remove advertising, or unlock access to premium or behind-the-scenes videos.
You also have the option of mixing these methods for better results. For example, you can combine advertising and subscriptions: users who want to access premium content will pay for subscriptions, and those who continue using the app for free will see ads from time to time. So, if you are not sure lots of users will make a purchase, you may generate better income using advertisements.
How to monetize your app efficiently
In order to benefit from this or that monetization method, you should choose the proper strategy for you. It all depends on what you’re offering: if it is a game, then in-app purchases would be appropriate, and if it’s a video app, the subscription-based monetization model and advertising options will suit you best.
Another important point you shouldn’t forget about is using analytics to track your results. It is crucial to monitor how users make their purchases, which features generate good income, which ones do not convert, how the ads work within your app, etc. The right analytics will help you change the monetization strategy in time and adapt to changing market conditions and consumer trends. Define a method that will fit the type of your app, monitor and analyze the results, and you will earn the reward you strive for.