The mobile application development services industry serves a huge potential to businesses to earn millions of dollars. However, not every business mobile application earns an equal share of Android and iOS market revenue.
Despite the similar mobile application development process for money making apps, not every business gets to earn billions of dollars being transferred to their accounts. This is making startups who are yet to enter the mobile industry, encounter questions like, “How do apps make money?”, “how do you make money from an app?”, “What are some successful app monetization strategies for business” etc.. We are going to tackle these questions in this article.
Current Market Statistics on App Monetization You Must Know
As per the survey for July 2022, there are over 2.65 million apps placed in Google Play store. It is also studied that gaming android apps are most likely to dominate by 2024, accounting for over 70% of the total app revenue in Google Play Store.
As for the App Store for iOS based applications, the number of apps available on the platform are over 2.18 million recorded in the second quarter of 2022. There is a 5% increase in the total app revenue compared to the previous quarter.
In the first quarter of 2022, the combined Apple Store and Google Play Store app downloads amounted to an estimation of 36.8 billion. This shows an increase of 2% as compared to its previous quarter.
Coming to app monetization stats, 8% of apps from the US are monetized by paid apps while 25% of the US generated app revenue includes Ads (video ads, popup ads, display ads etc.).
Revenue generated via in-app advertising is expected to increase by approximately 4% between 2021-2022. Moreover, the in-app purchases are also expected to increase by 8.4% between 2021-2022
Looking at the above figures demonstrates that there is tough competition in the marketplace for earning from apps.Under such circumstances, you would definitely want to prevent your business app from failing in the market. This is probably why your priority should be focusing on the right considerations before building your business application.
Things to Consider Before Developing Money Making Apps
Before you invest into designing and developing your app, it is important to take time out to research and list down a few factors. While you can conduct your own research, it would be best to seek technical guidance from a reliable mobile app development company or industry expert that has the in and out insights on money making app development.
When looking out for these factors, make sure you include the top four considerations listed below before actually developing your app.
1. App purpose
Prior to choosing any of the monetization models, you need to understand the type of your application. What and how does your application tackle any issue?
When focusing on how do apps make money, the app purpose plays a pivotal role. Answer these questions to get a detailed understanding of your app purpose.
- What problem does your app target?
- What software development services do you need to build a successful app?
- What could be the probable impact of your app monetization on the market?
- And how will the app be useful in serving the customers and their needs?
When you have a reasonable answer regarding the purpose, you will be able to choose a correct monetization strategy for your application; for instance, subscription models for service and content applications.
2. Target audience
Another factor that helps in determining how can apps make money is the target audience. If you are making a mobile application for the business people, it is important to go with a monetization strategy that does not waste their time. Likewise, when it comes to building an app for kids, it is good to offer a few solutions and features for free.
To effectively earn an online income from app monetization strategies, you need to examine your target audience prior to starting any plan. Who is the target audience? What do they require? The amount they will pay? To put it simply, your users should know the genuine worth to make purchases.
3. Competitor analysis
Performing Competitive analysis for your mobile app idea also contributes to making the decision related to how to make money from an app. The insights aid in getting a hint about what strategies similar applications in the market prefer and what all profits they have earned. This eventually helps with decision making.
The cutthroat competition in the market and the competitor analysis isn’t only for highlights, functionalities, and design of an application. With a proper study and knowledge regarding the competitors, you can without much of a problem discover the monetization business plan for your application. All you need to do is ask yourself certain questions like how competitors are earning? How solid are their models? Is there any loophole that can turn into an opportunity for you? Also, a solid marketing plan for your mobile app development can help you accelerate your marketing and sales.
4. Technologies
The set of technologies you introduce in your application not solely enhances the user experience and makes it stand out from the competition, but also adds to the earning from mobile apps.
Example: A traditional business mobile app monetization platform model provides developers with only 70% of the amount paid for a mobile application. Whereas, a blockchain-based application model delivers 85% of the total app profit share.
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