Paywall Placement Optimization: Strategies for Maximizing Revenue and Engagement

In this article, we’ll explore the key aspects of mobile app paywall optimization. We’ll cover best practices for timing, design, and personalization of paywall placement to increase conversions. We’ll also discuss methods for A/B testing, tracking user behavior, and integrating paywalls seamlessly into the app experience. Here are top strategies for paywall placement inside your app.

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This blog post is part of our Best Practices series. Read our tips on Design and Products.

1. Show a Paywall right after App Launch

The first few moments a new user uses your mobile app are very important. Many users churn in these few moments if they don’t understand the app or don’t see the benefits. First optimizing the first launch flow to teach the user about the product is important. Then showing them an initial “indirect intent” paywall can help reinforce the features and show them pricing.

Indirect intent paywalls are shown without the user expecting or intending to launch them. Don’t be surprised if this type of paywall has low conversion. Users often need to see the paywall multiple times before committing to a purchase.

Paywall placement optimization experts recommend not requiring a purchase to continue using the app. Very few business models really require this. And often users will have high churn rates if they download a free app but need to purchase a subscription in order to actually  enter the app. Make sure to clearly show a ‘Later’ or close ❌ button on this paywall so the user can enter the app and start exploring.

2. Launch a Paywall Right After Onboarding

Many apps include an onboarding sequence that gathers key information about the user and sets up their account. This sequence if done correctly can help make users more engaged and make the product easy to use after setup. The time users spend in the flow also helps your product become more sticky, as you take advantage of the sunk cost fallacy. Users who spend time during onboarding are more likely to continue using the app because they’ve already spent time getting setup.

The Sunk Cost Fallacy describes our tendency to follow through on an endeavor if we have already invested time, effort, or money into it, whether or not the current costs outweigh the benefits.

Take advantage of this momentum by showing a paywall right at the end of the sequence. This paywall should reiterate the features and benefits you showed during onboarding. This type of paywall often includes only 1 annual product, but you should test to find out what converts the best.

3. Optimizing Paywall Placement: Gate App Content behind Direct Intent Paywalls

“Direct Intent” paywalls are paywalls that users come across intentionally, while trying to gain access to the content behind them.

These paywalls should focus on the feature the user was trying to access. Don’t reuse your same “indirect intent” paywall over again. Instead tailor it to the benefits of the desired feature in order to get the best conversion.

4. Make your Paywall Easy to Find in the App Settings

Make sure that if a user really wants to purchase, they can find their Upgrade options easily in the App Settings. This paywall should be a multi-purpose “direct intent” paywall that includes a summary of all benefits and all products.

5. Show Offers inside your App with special Paywalls

Special offers, whether they are for a holiday, an introductory offer, or just a regular sale, can be a good way to convert users who are on the fence about purchasing.

A special offer paywall can be simple, but should focus on the price difference and how long the user has to redeem it.

You can pop up special offer paywalls at random times (such as after a new user has used the app for a number of minutes), launch them on a schedule for an event such as a holiday, or launch these paywalls when the user clicks a banner.

Tracking Metrics for Paywall Success

To ensure that your paywall strategy is effective, you need to track key performance indicators (KPIs) that measure user engagement, conversion rates, and revenue. Metrics to focus on include:
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• Conversion Rate: The percentage of users who see the paywall and go on to subscribe or make a purchase.
• User Retention: Measure how paywalls impact retention, ensuring that they are not causing users to abandon the app.
• Lifetime Value (LTV): Track the long-term value of users who convert through paywalls to evaluate the sustainability of your monetization strategy.

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Conclusion

Optimizing paywall placement in your mobile app is both an art and a science, requiring a careful balance of timing, context, design, and testing. By leveraging user behavior insights and continuous A/B testing, you can ensure that paywalls enhance the app experience rather than disrupt it. For developers and app owners looking to enhance their mobile app monetization strategies, NamiML offers low-code solutions that seamlessly integrate paywalls into your app while providing the tools needed to track performance and optimize revenue.

Nami can help you setup no-code paywalls and do easy 1-Click A/B Testing. Get started today.

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