MANAGING MONETIZATION AND GROWTH: INSIGHTS FOR MOBILE APP OWNERS ON FREEMIUM TRANSITION AND PROMOTION

Abstract

This study explores mobile app management and promotion strategies, focusing on how monetization model changes and the use of motivated (incentivized) traffic influence mobile app store visibility, organic growth, and the performance of user acquisition campaigns. The research is grounded on a real-world case of an iOS app “WordFace” developed by the authors, initially distributed for a fixed price and later transitioned to a free-to-download model with in-app subscriptions. The primary objective was to analyze how this shift influences user acquisition cost, conversion rates, and overall return on investment. Methodologically, the study combines practical ads campaigns data with industry benchmarks and digital platforms analytics (SplitMetrics, RevenueCat, Adapty).
Findings show that the switch to a freemium model dramatically reduced the cost per install and increased the conversion rate from impressions to installs. However, the new monetization approach required optimized app onboarding system and subscription funnels to convert free users into paying customers. A structured onboarding process and a 3-day free trial were introduced, increasing trial starts and improving trial-to-paid conversion. Additional experiments compared Apple Search Ads to Facebook Ads, where Facebook proved more cost-effective but required complex attribution tracking. The study also examined motivated installs on the example of KeyApp platform as a tool to boost keyword rankings and organic visibility, yielding mixed results.
The research highlights the trade-offs between volume and user quality in subscription app promotion. While freemium models enhance reach and lower acquisition costs, long-term success hinges on retention and lifetime value (LTV) of acquired users. Future studies may expand the dataset and explore machine learning-based targeting or predictive LTV modeling to further optimize mobile app marketing strategies.