Software Monetization in 2024: A Summary Outlook

Software monetization in 2024 has evolved considerably from years previous. In this summary of the year’s developments, we’ll highlight some of the major trends as well as key developments that indicate the direction monetization will take next year and beyond.

Major Monetization Changes in 2024

Every time a new technology is introduced into the internet ecosystem, new monetization opportunities arise. And with those new opportunities come floods of new marketers, developers, and publishers who want to capitalize on the new market.

This has been the case with desktop operating systems, smartphone platforms, browser extensions, and other extendable platforms. Of course, with these new marketplaces comes new challenges…what’s here one day could be gone the next.

Browser Extension Monetization

Software monetization has always been a thorny problem for many developers, but browser extensions are even worse. It is quite difficult to monetize browser extensions while maintaining the user experience. Some of the best examples are cases where the developer has found a way to align the extension’s monetization solution with the user experience.

StumbleUpon’s browser extension, for instance, is a perfect “extension” of the company’s business model. Yet the monetization method is so well disguised that many users don’t know how the company earns money.

Search monetization is another example of a monetization solution that integrates functionality with revenue generation. Browser extensions or software programs that integrate this functionality into their browsers, for instance, earn money when users perform searches.

At the other end of the spectrum, however, we have developers who don’t integrate monetization and functionality. In some cases, developers have actually covertly hidden their monetization method in the code. In one case, for example, a developer used an extension to turn regular links into affiliate links without telling users.

This is one instance of a browser extension gone wrong. This extension may have been one of the factors that caused Google to update its terms of service in an attempt to force Chrome extension developers to keep extensions “simple and single-purpose in nature.” The result is a strict terms of service that makes monetization that much harder.

Pay-Per-Install and Bundling

Though extension monetization has hit a couple roadblocks in 2024, pay-per-install and software bundling are still two reliable monetization methods. A few years ago, Apple was throwing some wrenches into the works by rejecting some pay-per-install apps. However, this response on Apple’s part was a reaction to incentivized installs that were designed to manipulate user reviews or chart rankings.

For apps that don’t attempt to manipulate App Store rankings – or for software programs that don’t use app stores at all – pay-per-install and bundling are still one of the best ways to monetize the download.

Bundling can refer to rolling up several programs into a pay-per-install program. Or it can refer to bundling as a pricing strategy.

This strategy received some attention in 2024 when Thom Yorke, the lead singer for Radiohead, offered his music for sale as a BitTorrent Bundle. Though bundling itself is nothing new, it has taken some time for traditional industries – and even the software industry – to catch on and catch up.

As we move into 2024, it is likely that more software developers will realize the potential for bundling as a monetization solution.

Display and Video Advertising

New monetization solutions are emerging with new technology. Display advertising and video advertising, for instance, have begun to show promise even as other forms of advertising begin to decline. In the past, video ads were once too unwieldy to transmit over wireless networks or across multiple platforms.

But technology has helped advertisers overcome this hurdle. Major social networks, from Facebook to Twitter and Instagram, began introducing video ads into their content.

As wireless bandwidth increases, as technology itself becomes more robust, and as the cost of video production decreases, video ads themselves will become more widely available to more modest budgets…not just major brands on major social networks. Several video advertising companies already offer video ads to developers as a way to monetize apps. In fact, a 2014 study found that 3 out of 4 mobile video ads happen in-app.

Mobile Monetization

As the crowds of consumer eyeballs move from desktop to mobile, so too do the marketers, software developers, and advertisers. Though freemium has been the most popular monetization strategy for most developers, in-app advertising produces nearly the same amount of revenue, despite being less popular.

Given the competitive nature of the app markets, it is only natural that consumers would avoid spending money as much as possible – after all, everything digital is free. Why should customers have to pay for anything?

For software developers, the above-mentioned monetization methods, such as pay-per-install, in-app display ads, and so forth, will be the way to go in 2024.

This year, we have seen several monetization milestones come and go. While the occasional misuse of browser extensions has thrown up some roadblocks for the rest of the development community, mainstream app and software monetization continues to plow forward successfully with installation advertising, bundling, and in-app advertising. If this year’s developments are any indication, the mobile-first future will also be display-first and maybe even video-first. 

Software Marketing in 2024: 5 Tips for Getting the Word Out

Software marketing in 2024 isn’t the same as it was five or ten years ago. Gone are the days when you can create a quick-and-dirty app for quick-and-easy profits. In most cases, a single app needs to form part of an ongoing, long-term business and marketing plan.

With that in mind, it’s best to build a product that adds lasting value to customers, so they stay engaged for the long term. Loyal users make more money, aid your reputation, and fuel your business growth.

Here are five tips for developing a long-term, successful software marketing plan in 2024.

1. Target Your Advertising

Advertising is becoming a complex science. To be successful, you need to know who your audience is, where they spend their time, and how to target them.

Who – Most analytics, advertising networks, and marketing platforms offer sophisticated targeting. Depending on the advertising platform, you’ll be able to target gender, geographic locale, age groups, education level, interests, relationship status, and so forth. This information is extremely powerful and has a big impact on conversion rates. Use user testing and analytics to gather as much of this information as possible.

Where – Though you want to know where they are in the real world, you’ll also want to know where your users spend their time online. Knowing the “who” will help you find out if they spend more time on certain social networks, on certain websites, on certain apps, and on which devices and operating systems.

How – So now that you know all about your audience, how do you target them? Choose the right advertising platforms. If your audience spends time on Facebook, then Facebook is clearly a good option for advertising. If a niche audience spends a lot of time on a set of niche websites, make sure that your advertising networks or marketing platforms can advertise on those websites.

Targeting the right users is half the battle.

2. Automate the Right Parts of Your Marketing

Marketing automation is an essential asset for online marketers. When used correctly, automation can give you a competitive edge; when it is misused, it can sound artificial. Here a few things you should automate:

Data Gathering – Keep track of what’s going on in your industry through tools such as Google Alerts, RSS Feeds, Digg, and similar aggregators.

Auto-Responding and Auto-Posting – Automatic responses to inquiries, social media follows, blog comments, and emails are fine. Some automatic social media posting is fine, but too much can seem artificial. Some marketing firms have found that automatic social media posts lowers the number of followers, likes, and so on.

Custom Triggers – Easy-to-use tools like IFTTT (if this then that) allow you to set up triggers between online channels that automatically perform another action. For example, each time someone follows you on a social media channel, you can automatically send them a thank you message. Programmers will probably be able to create custom scripts that perform certain actions under certain circumstances.

In general, when automating your marketing, auto-responses are fine. But avoid automating your online socializing, such as commenting, Facebook posts, Tweets, and so forth. People can tell.

3. Use Marketing Platforms

Marketing platforms, such as Grow Mobile and CodeFuel’s monetization products give developers an array of marketing tools.

Grow Mobile, for example, gives you access to multiple ad networks in one handy interface. Instead of tracking and engaging multiple campaigns on multiple networks, you can follow all your campaigns under one roof. Tracking analytics, ROI, and customer value becomes much easier.

In a way, this could be considered a form of automation. Elsewhere on this blog, we discuss monetization platforms and marketing platforms in depth, and their future role in online marketing.

As with other marketing automation tools, these platforms are particularly useful – and practically necessary – for any developer who wishes to remain competitive.

4. Use a Pay-Per-Install Program and In-App Ads

Pay-per-install software works by presenting advertisements during the download process. You can tweak and customize the installation process the same as you can with any other conversion funnel. Split-testing and analytics allow you to boost conversion rates and your revenue.

Once your download is completed, you want to keep making money. That’s what in-app ads are for. Using the information you gather about your audience, choose an appropriate ad network that targets the right users.

Keep your ads streamlined, unobtrusive, and as relevant and integrated as possible. Some highly relevant ad formats, such as recommendation engines, actually work with a program to add value, which increases conversions that much more.

5. Get Listed

Get your app listed wherever you can as lists are amongst the most powerful tools in your marketing arsenal. Here are some others to consider:

Software Directories – Find a software directory that allows you to use a pay-per-install program, and use the directory to get in front of thousands upon thousands of users.

App Stores – App stores aren’t just for smartphones any more – Windows 8 and Mac have their own app stores. Store listings is a must for any developer.

Top Ten Lists – Bloggers love top ten lists, so find your nearest niche blogger and let them know about your app. If the app is good enough, it may be included in their next top ten list.

Affiliate Networks – If you charge for your product, get listed on an affiliate network. With the right commission, your software will get picked up by affiliates, who will end up marketing your software for you.

Pay-Per-Download Networks – Another way to earn money and get the attention of marketers is on pay-per-download networks, which often have affiliate programs of their own.

These are just a few tips to help you improve your software marketing. For more, check out our blog.