The mobile app development services industry offers potential for business revenues. But now, all the business apps are able to capture equal shares of the iOS and Android markets. There are startups still questioning how they can use apps to make money or how the apps can make money. They are still on the downside of successful app monetization strategies.
To enter the app market full of competition, it’s required to have the right strategies. The approach must remain focused on monetization. To understand the models like in-app purchases, advertisements, etc., is crucial. It’s needed to maximize the earning potential of the app. Having the right strategy can influence the success of the app, too. Before you explore such strategies, consider the key stats about app development & more.
Must Know App Monetization Statistics
To understand the app monetization is essential in the mobile market of today. There are around 2.65 million+ apps on Google Play (2022). Also, around 2.18 million+ apps on App Store (2022) are there. The gaming apps remain projected for dominating the Google Play revenue by the year 2025. It accounts for around 70%.
Furthermore, the revenue of the App Store saw around 5% increase in 2022’s second quarter. Combined, Google Play Store and Apple downloads reached 36.8 billion in 2022’s Q1. It’s 2% rise from what it was in the previous quarter.
In the United States, around 8% of apps get monetized via paid downloads. 25% of the app revenue, it comes through the ads. The in-app advertising revenue, it’s expected to grow around 4%. While the in-app purchases growth was by 8.4% between the year 2021-2022. For thriving in the competitive market, the businesses must consider app development. They must also consider their monetization strategies.
Considerable Aspects for Apps to Make Money
It’s important to consider some critical factors for the success of money making applications. Also, ensure to conduct a thorough research. Take technical guidance from a reputable mobile app development company or industry expert. The key considerations are app purpose, competitor analysis, etc.
Purpose of App
Understand the purpose and type of the app. Focus on the problem it would address and the impact it will create on the market. The understanding will help to select an appropriate monetization strategy. It can be subscription models for the content apps and service. The questions considerable here are target problem of app, market impact, etc.
Competitor Analysis
When you hire mobile app developers, they ask to analyze competitors. It’s because it helps to understand the monetization strategies and also profitability. The analysis, it will help in making decisions and identification of potential opportunities. So, do consider how the competitors earn. Consider their model’s strengths and also weaknesses that could be exploited.
Target Audience
First, identify, then understand the target audience for choosing the right strategy of monetization. For the business apps, do not keep looking at strategies that are a waste of time. As for kids apps, offer the free features. Either way, ensure the on-demand app development is built after assessment. Access the users, needs, willingness of users to pay, and more. Then, recognize the value of the app.
Technologies
The tech used in the app could enhance the user experience. It can also enhance profitability. To say, blockchain-based models could offer higher profit share compared to traditional models. Understanding the tech landscape would help to make strategic decisions right.
Mobile App Monetization Models
Mobile app monetization is important for developers that aim to generate the revenue. There are some amazing strategies for consideration.
In-App Advertisement
The strategy helps apps to remain free for download. It still continues to be money making application as the app displayed ads help earn. Varied formats of it include videos, banners, text ads, etc., and revenue varies from $0.10-$10 USD.
Some pros of the strategy include,
- Faster results
- Generation of target audience
Some cons of the strategy are,
- Brings competitors ads in app
- Can result in lower engagement of users
In-app Purchases & Freemium Model
This model allows the app to be free to use. The users can buy the virtual items like game currency, extra lives & premium content. Like Clash of Clans, it made around $1 million every day via purchases.
The model attracts a wider base of users. It’s because the app has the option of try and purchases. The developers, though, are to pay a 30% fee to the App Store.
Subscription Model (Software-as-a-Service)
The users here pay the recurring fee for app-provided services. The model is quite popular with the cloud-based services and also content apps. It can be Netflix, Spotify, or any other app.
The model gets used by only 5% of the successful app developers. It attracts the free users and even retains them with the limited features. It remains even after the cancellation of subscription of the best money making apps. Herein, the challenge is in determining the correct amount of the free content.
Crowdfunding
The developers could present app ideas/platform’s MVP versions. It could be like Indiegogo and KickStarter for raising funds. The Hello Earth Game, as said, raised good value via crowdfunding. The method helps with easy financing without any upfront costs. It even allows for the testing of audience reactions or turning investors into customers. But to find investors for your app startup needs efforts. It would need both pitching and project building. The failed projects become a reason for reputation damage.
Affiliate Links
Like sponsorship, the model has negotiation with varied parties. It’s done for placing the links in the app and not granting advertisement rights to any entity. The method helps to increase the income. It does so without having reliance on one wealthy player.
Sponsorship
The app to make money with the regular users could connect with the brands from similar niches. It is for securing the sponsorship. The revenue could be divided equally, or there could be a monthly fee. Some weather channel apps are examples of using the model. The sponsorship helps in building awareness. It helps to consolidate businesses like the expert. But it needs stronger networking & marketing skills. It can even create controversies if it isn’t handled properly.
Now, to choose the right strategy for monetization is dependent on unique needs of app. It’s also reliant on the target audience of the best apps for making money. So, to understand such models could help in making informed decisions. It could help to keep up with the future trends within the mobile app market.
Choosing the Best App Monetization Method for Money Apps to Earn Money
Finding the perfect mix of monetization strategies for the app is important for success. The guide below will help with the decision-making process.
Create Monetization Funnel
- Identify the target audience and also the user persona.
- Develop the sales funnel for translating traffic into revenue.
Like, for the language learning app, use mini-challenges, gaming features, and more. It will help to engage users in monetary means and make money through apps.
Selecting a Suitable Platform
Consult experienced mobile app development IT consulting service. Get the best mobile app design services through them.
Do consider the Android and the iOS app development costs.
In general, apps get developed for both platforms for covering the entire targeted audience.
Leveraging Native Extensions
Extend the app with some extra features.
Use the freemium model. Ensure basic features remain free while advanced ones are available through subscription/in-app purchases.
Consider Some Local Factors
Ensure the final price structure. Do it with consideration to local factors like competitor pricing and cost of living.
The factors could create an impact on the revenue of the app in a significant manner.
Analyze User Stats
Try and track the app metrics. Then, analyze the user stats.
Ensure to understand the purchase pattern. Also, understand customer retention and average revenue per user.
Ensure that informed decisions are made. It will bring a sustainable and stronger monetization model.
Remember, the app monetization strategy creates an impact on apps to make money users. So, give priority to maintaining the top-level of user experience. Do it while the chosen strategy gets implemented.
Final Words- Business Mobile App Development & App Monetization Future
As you are aware of how apps to make money get used, you are definitely familiar with what the future will be like. Over the years, the business of mobile apps, iPhone app development services, etc., saw growth. It saw good money, which will be ensured in the coming years, too.
Currently, while gaming apps make billions per year, generic ones earn millions. The industry is doing well. Trends like Augmented Reality, Machine Learning, etc., are becoming important implementations. It helps businesses to remain ahead within the competitive market. It shows that there are endless possibilities that are related to how much the app can earn. All you need to do is submit it to stores. Your options will be high, and you will do good.
Frequently Asked Questions
How Can I Make Money on the Phone?
Money can be made by participation in the paid surveys, selling items online, freelancing, etc. It can also be done by playing games, watching videos or even completing some offers.
How Can I Create the App and Then Make Money Through It?
Creating an app requires one to learn programming languages, including Swift/Java. It might need app development platforms to be used, too. Later, the app can be monetized via advertisements, subscriptions, etc.
How to Make Android-Supported Money-Making Apps?
Android app development money-making apps, to make it one can use Android Studio. One can learn programming languages, including Kotlin and Java. One can even integrate monetization strategies like in-app purchases, premium features, etc.
