Living in the digital world where we rely on our smartphones for almost everything, there are more than 3 million mobile apps in the app stores today. However, not all of them generate millions of dollars\u00a0even after having the\u00a0potential to do so. If you are planning to start a business with a mobile app, you must be wondering- how much revenue\u00a0your mobile app can generate. Well! The answer depends on several factors such as the platform you choose, the app monetization\u00a0strategy, the app category & many more.<\/p>\n
Research states that the annual mobile app downloads are projected to reach 258 billion by 2022! This means more and more people are using apps. But that\u2019s not a good reason to start building an app for your business.\u00a0Many things\u00a0must be taken into consideration before you build & monetize an app of your own. Before you hire the experts of\u00a0the\u00a0leading\u00a0iOS\u00a0and\u00a0Android app development Company,<\/strong><\/a> you will discover everything you need to know about the money you can make from an app and what are\u00a0the factors to be kept in mind.<\/p>\n As we know there are\u00a0millions of apps available in the app stores today but not all of them are successful. Even if you have a killer idea\u00a0for your app, it\u2019s not enough to\u00a0gather\u00a0positive responses from the users.\u00a0Here are some of the top things that must be considered before developing an app for your business-<\/p>\n Before you finalize the app idea, it is crucial to concept proof\u00a0of your idea and how your app will help customers solve an existing challenge. Unless\u00a0your app acts as a solution for users, there is a high chance that it will end up as another app sitting in the app store.<\/p>\n Every app is targeted towards a group of users, which is why you must go through thorough research before beginning the app development process. Knowing the audience that will be attracted to your app idea must be a part of the research, which will help in keeping\u00a0the\u00a0focus on marketing your app amongst them.<\/p>\n Never compromise with the security of app data as it may contain your customers\u2019\u00a0sensitive information like locations, passwords, bank details, etc. Ensure that you keep security in mind while developing\u00a0an\u00a0app for your customers.<\/p>\n Understand the difference between\u00a0iOS\u00a0and Android as the platform you choose for your app will have a huge impact on earning potential depending on the differences in market shares, users\u2019 payment capacity & platform popularity at the particular location.\u00a0Though\u00a0iOS\u00a0takes only\u00a0a\u00a029% share of\u00a0the\u00a0world market while Android takes around 71%, iPhone users spend 2.5 times more money on apps than Android users.<\/p>\n After finalizing the platform for your app,\u00a0it\u2019s time to analyze the number of ways on how to make money with apps. Listed below are some of the popular models for monetization of\u00a0the\u00a0mobile app-<\/p>\n We will talk about the app type that is available for download from the play store without paying a single penny. The free apps can help you generate money based on the users\u2019 interactions with the advertisements displayed in the app. One of the best benefits of choosing this monetization model\u00a0of\u00a0the\u00a0app is there is a wide range of ad formats\u00a0that one can pick as per their needs to generate revenue & engage users.<\/p>\n These app types are the ones for which users will pay a one-time download fee\u00a0and avail all the app features forever. Paid apps dominated the apps world\u00a0a\u00a0long time before but\u00a0the\u00a0situation has changed today. Users prefer free or\u00a0freemium\u00a0app types, which is why developers opt for other monetization models\u00a0instead of paid apps.\u00a0The revenue in paid apps\u00a0is\u00a0generated through the download rate of the apps. If your business doesn\u2019t find any hurdle to grow a new customer base, go for this app monetization model & set a price to download your app from\u00a0the\u00a0play store.<\/p>\n Also known as\u00a0freemium\u00a0apps, these apps can be\u00a0a\u00a0great choice if you don\u2019t feel like using ads in your app. In easy words, partially free apps are the ones with in-app purchases. This option is preferred by users more than paid apps as they can explore the app content for free and decide after using whether they must spend on app features or not. These apps sell a variety of content such as extra live\/ energy in\u00a0the\u00a0game, ad removal charges, access to premium content, etc. Though it can be hard to make users choose for in-app purchases, providing them value can help in earning their trust making them paying customers.<\/p>\n Undoubtedly, we can agree that apps can be one of the most profitable entities today as everyone relies on apps for their daily chores. Not to forget that the global mobile app revenue is increased by a whopping margin of 200% crossing $188.9 billion in 2020 from 2016. This amazing figure is mainly contributed by some of the top gaming apps. The famous gaming app, PUBG Mobile managed to earn a monthly revenue of $146 million in July 2019. The app has gained a huge customer base exceedingly over 100 million users across the globe.<\/p>\n Not just PUBG Mobile, there are other gaming apps with impressive figures. One is Fortnite by Epic Games that has earned around $1.9 million\/day in 2018. Another gaming app that gained huge popularity is Pokemon Go, which made earnings of $800 million in 2018.<\/p>\n If we talk about the app monetization model, most of these highest earning apps rely on in-app purchases for the whopping figure of earnings. These apps are free to download and use but they come with extra gaming features that require users to pay for\u00a0them.\u00a0Research says $71.3 billion is the projected figure of earnings from gaming apps with in-app purchases in 2020. We know that more than 90% of the app revenue comes from\u00a0the\u00a0in-app purchases option. If you are planning to build a mobile app for earnings, make sure that you consider the option of in-app purchases to make the most of your app earnings.<\/p>\n Before you think of earning from your app, you have to invest in the right development team for the services. If you are worried about the development cost of your app<\/strong><\/a>, make use of our smart\u00a0app cost calculator\u00a0to get a quick estimate in a few minutes.\u00a0Choosing the right app category is equally important for the mobile app you want to build for your business. Apart from gaming apps, what are the ones that can help you generate more revenue? Let\u2019s find out in this section-<\/p>\n More than half of the Google Play and App Store revenue i.e. $35 billion out of\u00a0a\u00a0total $50 billion generated in\u00a0the\u00a0first half of 2020 comes directly from gaming apps only. The monetization strategy used by such games is in-app purchases that enable users to have a higher level of engagement & game skill for better spending\u00a0on apps.<\/p>\n As\u00a0many\u00a0people\u00a0are\u00a0becoming health conscious, fitness apps are the ones that\u00a0are\u00a0growing tremendously with the evolution of advanced technologies into the healthcare sector.\u00a0Sweat is one such fitness apps that gained a huge customer base in late 2015 & even earned $100 million yearly revenue.<\/p>\nThings to Keep in Mind While Building an App for Your Business<\/h2>\n
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Top Models to Monetize Your Mobile App<\/h2>\n
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How Much Revenue Can You Generate from a Mobile App?<\/h3>\n
Best App Categories that can\u00a0Generate More Revenue<\/h3>\n
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