How do mobile apps make money? This is the most frequently asked questions that make everyone more curious to know the truth. Get here a complete explanation.
The above is an important question that everyone asks – those who have already apps or others who are going to develop mobile applications. Well, the answer is an app has huge potential to earn hefty amount.
So, it depends on your app monetization strategy and also the type of apps your going to develop.
But, developing a game requires a sound budget. So, you need to be able to make a heavier investment. On the other hand, it’s also a fact that every mobile game app claims highest earning figures.
There’s a cut-throat competition in mobile game app world. So, you mobile game needs to be highly popular to come into the eyes of users to earn revenues. This reflects that it’s not a viable option for everyone.
Gaming apps are not only the option to earn revenues. There are in fact several other types of mobile apps too, which can earn huge revenues.
Here in this blog post, we will let you know what affects mobile app revenue generation ability. And also how much you can earn in following cases.
In-App Purchase is Important for App Revenue
No matter what, in-app purchases (IAP) play a vital role in your app monetization and helps you earn maximum revenues. It’s proved to be the most useful feature for gaming apps. And, we have already discussed above.
Today, apps company uses this strategy more frequently to increase mobile app revenue generation and thus makes your investment highly profitable.
IAP generally falls in the category of Freemium model of app and lets users buy extra features to make their experience more fantastic. Of course, users have to pay for extra features that they buy to enjoy.
However, to maximize mobile app revenue generation from in-app purchase, you can consider following important factors.
You need to know about your users and their needs.
You can customize your outreach to deliver a personalized user experience.
Try to establish a good relationship.
You should pay attention to follow your customers.
Change your pricing plan time-to-time to entice users to make purchase.
Mobile App Revenue Depends on the Platform You Choose
The total revenue generation from an app depends on the platform that you choose. There’s no denying that both iOS and Android enjoy an equal popularity among users and thus they frequently opt for these two for mobile app development.
Though in-app purchase on iOS is highly expensive than Android. It doesn’t deter iOS users to make in-app purchase frequently. According to the source, iOS users spend 2.5X more on in-app purchase than those of Android users.
So, What About Android App?
The above facts can make anxious to those who are planning to choose Android platform or already have Android apps. They may be thinking of – how much money they can earn from Android apps?
Need not to say Android has the largest numbers of users compared to iOS. So, it of course brings great earning opportunities for app owners. All you need to do is to make a right strategy to monetize your Android app to earn maximum app revenues.
Majority of apps follow a subscription model witnessed tremendous growth in their earnings. Netflix is one of those. With approaching approximately 150 million subscribers, Netflix has lured a large number of users.
According to Statista, it has earned over $4.9 billion revenue as of the second quarter of 2019.
Another popular app named Tinder that also uses the subscription model of generating revenue and witnessed a huge success. The monthly subscription for Tinder Plus and Tinder Gold are $9.99/month and $14.99 respectively.
According to Match group announcement on August 6, 2018, Tinder has overall 3.7 million paid subscribers, which is up to 81% more compared to same quarter in 2017. Match Group stated that it has earned total revenue of $444 million in Q3 2018.
In-App Advertising to Earn Revenues from App
In-app advertising lets you grab opportunities to earn money from your application by displaying ads of other brands.
It’s of course a trusted and the most preferred way of app ad revenue and to earn money. In this, you have to do click per view agreement with the brands interested to advertise through your app.
Your in-app advertising revenue depends on every click that users make on the displayed ads and payment is made accordingly – the average income you can earn $0.01 per click. (for banner ads).
So, if your app gets 20,000 hits on a daily basis, you can earn approx $200 (0.01 x 20,000) on regularly. Majority of app owners are reaping out the benefits of in-app advertising and witnessed a major boost in their mobile app revenues.
A mobile app gives you tremendous opportunities to earn money and thus helps you get the best returns of your investment. There’s no limit to how much you can earn from your app. All you need to do is to make a right strategy in terms of platform selection, in-app purchase, subscription model, etc., to monetize your app.
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