Have you ever thought about how much revenue you generate from your mobile application? The answer here actually depends on different factors like platform you choose, to monetization, to category.
As mentioned in Statista, there are more than 3 million apps on both Apple App Store and Google Play Market. Most of these applications could generate millions of dollars, whereas, only a small fraction of them can actually do.
If you are coming up with an idea to build and monetize an app, here are some of the different variables you should consider:
- Difference between iOS and Android
- Most popular monetization models
- Most profitable categories
1. Difference Between iOS and Android
Remember, the platform you choose has a very huge impact on your earning potential. This is mainly due to differences in market shares, users payment capacity, and the platform popularity.
29% of the world market is taken by iOS, whereas 71% is taken by Android. Even though there is a huge gap between these platforms, iPhone users spend 2.5 times more money on the online market than Android users. In the first quarter of 2019, the overall income generated by top 100 app publishers on both the platforms is about $135 million. And, 62% of that revenue is accounted for iOS apps, and 38% for Android apps.
If you are concerned about the number of downloads, that is the area where the App Store loses to Google Play. The percentage of downloads in the App Store is almost twice as low as in the Google Store.
Therefore, we can say Apple can offer you more paying users due to its strong presence in the market. While, Google can give you wider market coverage and downloads.
2. Most Popular Monetization Models
Now after you have chosen your platform, it is important to consider the revenue generation models. So, following are some of the points you should consider.
Yes, Free Apps can generate money too. Simply, you can generate money with advertisements displayed in the app. You can choose different ad formats, and thus you can choose the one that suits your needs.
And, if you are looking to spend little money on ads, you can consider going with a classic banner ad. On the other side, if you are looking to increase your ad spend, reward video or native ad can be a good choice.
But remember, ads need to be tested and analyzed constantly.
Partially Free Apps (Freemium)
Freemium model is a good alternative if you do not want to use ads in your app. Freemium implies using in-app purchases. In this model, it can be used to sell different contents like extra lives in games, virtual currency, ads removal options, and so on.
The majority of users do not make purchases as also mentioned by AppsFlyer research. But, if you can provide a good value to your users, the chances are always high.
A one-time download fee model, where it allows users/customers to get an app. Generally, users prefer free and freemium types of apps than Paid Apps as included in Statistics . This model is good to go if a constantly growing user base is not a problem for you.
Therefore, choosing the best revenue generation model depends on the way you want to drive your idea and app.
Profitable App Categories
Another consideration is to decide on what category of app you would like to build. Your idea / selection of a category can help you choose the best revenue model, and platform you would like to use.
$50 billion revenue is generated in the first half of 2020 by both Google Play and App Store in Gaming category. With current trends, it is expected to reach at-least $196 billion by 2022. The revenue strategy still depends on the game genre. For instance, in-app purchases (freemium) model can be a good idea for simulation or casual games.
Yes, the dating apps. Very lucrative, and users of this genre are interested in purchasing subscriptions. For example, Tinder, generated $433 million from both the platforms. A free to download, and a subscription model- Freemium. The worldwide user base of dating apps is $139 million.
TikTok and YouTube are good examples of this category. In 2020, YoutTube generated $431 million globally, and $421 million in revenue by TikTok. Meaning, more people are choosing streaming services for entertainment, and paying for cable connections are lowering.
Babbel is a good example, a lucrative language learning app. Educational apps can generate significant learning apps. You can offer in-app ads, or purchases for learners, or subscription-based model- Freemium category.
The differences in revenue can vary depending on the category you choose.
So how much can a mobile app earn you in 2021?
Already answered. The mobile app market is growing with plenty of opportunities to create high-earning products. You need an idea, choose a platform, and choose a category.