Are you wondering how much revenue your app can generate? Different factors influence the answer, such as the platform the app is developed on, the monetization model adopted, and the category that the app belongs to.
Android users had more than 3.5 million apps to choose from during the second quarter of 2022, making Google Play the app store with the largest selection. There are roughly 2.2 million available apps for iOS in the Apple App Store, making it the second-largest app store. Although all of them have the potential to generate millions of dollars, only a small fraction does.
Creating an app to generate revenue requires taking into account many factors. Consider rethinking your app creation idea if revenue is your only motive. Even though you might be tempted to build another Facebook app or TikTok app after seeing successful apps, you won't be able to replicate them. Consider the features that make popular apps profitable before developing one.
1.What to Consider While Building Your App?
2.Whether to build on Android or iOS?
3.Which monetization model to choose?
4.Which is the most profitable app category?
Combined, Android and iOS account for over 99 percent of the global market share. With a share of nearly 71% in the smartphone OS market as of September 2021, Android is the world's most popular mobile operating system. With 27% of the market, iOS is the second most popular mobile operating system. It is true that Apple's App Store generates more income. iOS apps generate more revenue despite the fact that it has fewer applications and their audience is significantly smaller. App Stores get their revenue from app purchases, while Google Play Stores earn a meager amount from in-app purchases.
The main source of revenue for Android is advertising. iPhone applications don't have many advertisements. Mobile app developers benefit greatly from iOS users' responsiveness to acquiring new apps or removing advertisements through purchases. Even though Apple only receives half as many downloads as Google Play Store, Apple generates twice as much revenue.
Your chosen monetization method must fit well with your app's overall user experience.
A number of digital products work well with a paid app model, including media editing apps, productivity apps, utility apps, etc. Buying several applications at once is also possible - this is known as an app bundle. The app developer gets paid whenever an app is purchased separately or as part of a bundle.
The simplest way for an application to generate revenue is to charge users for features they can purchase once they begin using it. According to Gartner research (quoted by Business Insider), consumers prefer in-app purchases over buying apps upfront. When building an app for iOS users, you can expect them to be more likely to buy in-app purchases than Android users.
Advertisements inside your digital product are another way to monetize your product. Several applications today use mobile app advertising as a powerful marketing strategy. Ad placement, size, and type must all be carefully considered when designing banner ads. Make sure your product remains user-friendly while the ads aren't irritating. Ads in your app should be relevant to the audience you are trying to reach.
Using an affiliate marketing link within your mobile app, you are rewarded with a commission fee any time a user downloads the app or takes a specific action. You must consider the type of apps you will promote inside your digital product. Choosing these apps carefully is crucial - they should enhance and complement your own product. This can be achieved by capturing the contact information of people who are explicitly interested in purchasing particular products or services. Providing this information to companies looking for leads is the basis of this affiliate marketing program.
In many types of digital products, including mobile apps, games, and SaaS, the subscription model is prevalent. If you want it to work to your advantage, you need some kind of paywall or trial period. There is also the option of a metering paywall, which appears after a certain level of content consumption. The majority of magazines do not share their most valuable content for free. To access the entire article, you need to subscribe. A subscription plan can differ based on the number of features your product offers. Doing this can generate more revenue instead of preventing people from accessing premium content.
People working on digital products might not be aware of this type of advertising. Why not offer another company's services to your users if your application has high user engagement and a large user base? An advertising relationship is formed through sponsorship by engaging a single advertiser. Whether the sponsor is just an icon or covers a large portion of your app's interface, it will be recognizable. Also, the app splash screen can be used for this purpose - it's visible after the app launches.
Digital products are commonly monetized through crowdfunding platforms such as AppsBakr, SellanApp, and Appstori. Note, however, that their revenue generation is unpredictable. There is also no guarantee that your revenue stream will remain stable. In the long run, it isn't a good idea to depend on it as a major source of income.
The following are the mobile app categories with the highest earning potential, so you can better understand the potential of each.
New titles and console-like graphics have transformed the gaming app market in recent years. Consumption of mobile game apps to make money has increased steadily since 2018. An annual spending peak of $116 billion was reached in 2021.
Game developers can build gaming experiences on Roblox, one of the best earning app games, which allows players to play games from around the world. As a result, users are able to choose from a wide range of game modes, game types, and game genres. As a freemium app, it contains in-game currency, ads, licensing agreements, and royalties.
Coin Master is a casual mobile game that lets users upgrade items and build villages by winning coins. Its business model relies on in-app purchases, which are ubiquitous throughout the app.
As physical connections and meet-ups were taken away from users in 2020, the virtual dating market greatly expanded. Despite dating apps having been around for a while, the number of users increased to 323.9 million in 2021.
With a staggering $1.35 billion in consumer spending in 2021, Tinder led the way in consumer spending. With free-to-use features including Boosts and Super Likes, in-app subscriptions, and purchases, Tinder's free-to-use model resonates with its diverse audience. The pricing of Tinder also varies based on the user's age.
Bumble also helps users connect with like-minded individuals. Bumble has a similar monetization model to Tinder, with premium features called Spotlight and Boost.
Over half of the world's population is on social media, making over 3 billion people using it in 2021. Social networks play a crucial role in building a new marketing channel and creating an environment for entertainment. Aside from avatar-based social networking apps, live video streaming and chat are the most profitable types of social media apps. Itsme, ZEPETO, and IMVU, among others, have seen downloads rise by 160% year over year. This trend illustrates the growing demand for avatar-based social networking.
Originally designed as a short-form video-sharing platform, TikTok has evolved into a full-fledged video service with content for all types of users. A large part of TikTok's revenue comes from ad revenue and in-app purchases.
As a trending communication platform in 2021, Discord experienced large word-of-mouth growth. It relies on Nitro subscriptions, server boosting, and game fees to make money despite being ad-free.
Another king last year was video-streaming services and content-based platforms. The pandemic prompted users to flock to entertainment apps such as Netflix and YouTube as well as podcasts and memes to lift their spirits. Millennials, who have migrated much of their entertainment to mobile devices, are especially fond of entertainment apps, according to the State of Mobile 2022 report.
The popularity of YouTube is on par with the Internet itself, and it continues to dominate consumer spending all over the world. Ads and subscriptions to YouTube Premium generate revenue for YouTube.
As one of the largest Chinese streaming platforms, it also boasts the highest profits. The company generates revenue from its online games, advertising, and other services. The online advertising revenue of Tencent made up 18.1% of the group's total revenue in 2019.
Gyms and healthcare facilities remained untrustworthy amid the COVID-19 outbreak. The mobile market accounted for 600 million downloads in 2021 as consumers shifted to mobile for their health and fitness needs. Rather than working out, fitness enthusiasts are increasingly turning to mindfulness and meditation, giving rise to apps such as Calm, Headspace, and Meditopia that promote meditation.
In the world of diet and food tracking, this app has always been a top seller. By tracking calorie consumption and building healthy habits, MyFitnessPal helps users get in shape. A combination of premium memberships and advertising generates revenue for MyFitnessPal.
Among the most popular mental wellness apps, Calm is considered the best for sleep and meditation. A number of mental health conditions can be treated with the help of this application, including anxiety, depression, sleep problems, and sleep apnea. A monthly fee is charged by Calm to access guided meditations, music tracks, and other content in the premium version.
You can make mobile apps to make a stable profit generating method in a variety of ways. Finding out what platforms are available, what revenue models are available, and which app categories are most popular will help you develop the perfect monetization model for your app.
With Neetable's mobile app development expertise, we help businesses grow. Get a free consultation if you need help developing a cost-efficient mobile app.
A. A free app can earn money in three basic ways: in-app advertisements, sponsorships, and referral marketing.
A. On a daily basis, the top 200 apps on the app store generate around $82,500, but when we compare that with the top 800 apps, the daily revenue only amounts to about $3,500.
A. In terms of profitability, entertainment apps, gaming apps, and dating apps dominate the app market due to their high level of customer engagement.
A. Currently, Apple keeps 30% of the revenue generated by Apple apps and gives developers the remaining 70%.
A. A 30% share of the Android app's revenue goes to Google, and 70% goes to the developers.
A. Revenue models for mobile apps are determined by the core functionality of the application, such as the platform, the target audience, and the monetization models.
A. It is possible to earn money from an app if you have a reliable business idea and a strong online presence.