Rejuvenate Your Health & Fitness App Monetization Strategy

By Amy Vale

There are over 40,000 health and fitness apps out there, and that number is climbing fast. Not to mention, these healthy apps are expected to bring in $1.3 billion in 2012, according to a Research2Guidance report. If you have any doubts or skepticism as to just how lucrative the health and fitness app market really is, take a look at these numbers. About 33% of people with smartphones in the U.S. tracked their diet or their exercise routines with their mobile devices, a comScore representative told the New York Times in April. comScore said that for tablet users the numbers climb a bit: 35% used the devices to track diet and 39% used tablets like the iPad to track their exercise. Clearly, the time is ripe for publishers and app developers to grow their mobile revenue through health and fitness app advertising.

Gone are the days when publishers and app developers rely on pay-per-download apps as their sole source of revenue. While the Freemium model isn’t going anywhere, we’re seeing a shift in the monetization tactics used to generate revenue from mobile apps, specifically using in-app ads and in-app purchases. First, health and app developers need to dig into the who, what, where and why their apps are being used. Who are the targeted “power” users of these apps? How likely are users to view and interact with ads that appear in health and fitness apps? What types of information and content is of interest to these users and what ad format would drive deeper engagement? By answering these questions, app developers can serve up ads that are more relevant, targeted and engaging. As a result, mobile traffic and revenue will undoubtedly surge.

Of course, we can’t ignore a huge “power” market for health and fitness apps – mobile moms. Moms are often referred to in the medical community as “Chief Health Officer”, and today’s mom has an even greater reliance on her smartphone or tablet to keep her family healthy, wherever she may be. Recently, our mobile ad network Mojiva released its “Moms on Mobile” report, which revealed that one-third of moms own a connected device and they spend an average of 6.1 hours a day on their smartphones – that’s more than the time spent reading magazines, watching TV or listening to the radio. Plus, 62% of these mobile moms use shopping apps and 46% took action after seeing a mobile ad. To this group of “power” users, mobile is more than just another channel; it’s an essential component of their everyday routine. These connected moms are sleeping with their mobile devices next to their bed andthey’re scrolling through emails and social updates first thing in the morning. They’re tracking their family’s health and fitness goals on these small screens (i.e. calories burned, miles run, healthy recipes). And they’re even using the devices to research more serious health conditions such as Diabetes and Heart Disease. According to a Baby Center study, one in three moms used her smartphone for health purposes, compared to 22% of the general population. Further, a Baby Center “Dr. Mom Study” showed that nine out of 10 moms who own smartphones used the devices to research health conditions.

When it comes to health and fitness apps, it’s all about the user experience. Is it engaging? Does it provide useful and relevant health tips and information? How often do users use the app? Much in the same way the user experience impacts how users engage with an app, this same “usability” factor should be taken into consideration when serving up ads within an app. For instance, rich mobile ad units, such as expandable banner ads, click to social and video, can meet these “usability” needs and, in doing so, ensure that publishers and app developers achieve optimal ROI and deliver against their KPI metrics.

In addition, in-app purchases are also being hailed as a smart and effective monetization route. According to a recent study conducted by IDC and Appcelerator, 50% of developers say that in-app purchases will be the most important monetization strategy, tying with app store sales. In the case of health and fitness apps, a lot can be learned from gaming app developers who create ongoing revenue streams through in-app purchases, also referred to as “tokens” or “power ups.” Much like Words With Friends and Angry Birds, power users are fiercely loyal and will be more receptive to make in-app purchases once they’ve used the app more than 10 times. These in-app purchases, or “tokens,” can be redeemed for a number of “goods,” including gym discounts and exercise video packs. The more relevant and targeted these in-app purchases are, the greater likelihood they will make money long-term for publishers and app developers.

Health and fitness apps are here to stay, that’s for sure. What remains to be seen is how publishers and app developers will turn what some may call a “fad” into a long-term, lucrative business that deliver real revenue and ROI.