The mobile app development services industry offers businesses immense potential to generate millions of dollars in profit, though not all business mobile apps generate equal revenue on both Android and iOS platforms.
Although mobile application development for moneymaking apps may appear similar, not all businesses realize millions in revenues from them. Startups new to the industry frequently ask how apps make money or what successful app monetization strategies may exist for business use (among others). We will address such queries here, like how iPhone users earn money with mobile games, in this article. Before diving in, though, here are a few statistics you may wish to keep in mind before answering such queries:
Current Market Statistics On App Monetization You Need To Know
- As of July 2024, there were over 2.65 million apps on the Google Play Store; it is also estimated that by 2024, gaming Android apps will account for approximately 70% of total app revenue on this platform.
- Q2 2024 saw over 2.18 million iOS-based applications listed on the Apple Store; total revenue increased 5% year over year compared to Q1. By Q1, app downloads totalled 368 billion, reflecting an estimated increase of 2% over the previous quarter.
- In the US, paid apps comprise 8-8% of app revenue, while ads (video, pop-ups, and display) make up 25%. 2023-2024 forecast estimates call for in-app advertising revenue growth of 4 percent, while 8.4 percent increases are predicted between these dates for in-app purchase growth.
- Looking at the above figures demonstrates that there is tough competition in the marketplace for earning from apps. Under such circumstances, you should prevent your business app from failing in the market. This is probably why you should prioritize making the right decisions before developing your business application.
Things To Consider Before Developing Money-Making Apps
Before designing and developing an app, conduct research to identify key elements. Though you could conduct your investigation, for maximum benefit, it would be prudent to consult a reliable mobile app development company or industry expert with extensive expertise in the best moneymaking app creation. Before beginning the faster app development of an app, make sure you include these four major points as considerations.
App Purpose
Before choosing your monetization model, it's crucial that you first understand what type of app it is. What issues does your application solve for, and what revenue stream does it create? Answer these questions so as to gain a thorough insight into its purpose.
- What problem does your app address?
- What services are required for successful mobile app development?
- What impact might your app's monetization have on the market?
- And how will the app help customers meet their needs?
Assigning the purpose of your app enables you to select an effective monetization strategy - for instance, subscription models in service/content applications.
Target Audience
Target audience is also key when considering how apps generate revenue. When developing mobile applications aimed at business professionals, use an effective monetization strategy without wasting their time; when designing applications specifically targeted towards children, it would be prudent to include some free advanced features and solutions as these will likely draw them in and create revenue-generating apps more rapidly.
Before embarking on app monetization strategies, it is crucial to identify your target audience. What are their requirements, what amounts will they pay, etc? For your user engagement understand the true value before purchasing anything.
Competitor Analysis
Conducting a competitive analysis for your mobile app idea can provide insights into market strategies and profits associated with similar apps - which helps facilitate decision-making processes. Competitor analysis in today's highly competitive marketplace requires more than simply reviewing an app's highlights, functionalities, and design.
With proper research and knowledge of your competitors' offerings, you can quickly establish monetization business goals for your app - simply ask yourself, "How much are competitors earning?" "how secure are their business models?" etc. Is there any loophole that could lead to an opportunity for you? Developing a mobile marketing strategy for your mobile app can boost sales and marketing efforts.
Technologies
Introducing new technologies into your app not only enhances the user experience and distinguishes it from competitors but can also lead to greater revenue from mobile applications. As an illustration, traditional business mobile app monetization platforms typically only pay app developers 70% of total app payments; on the contrary, blockchain-based application models generate up to 85-87% profit share for apps. Now, let's examine some different models for making money through apps.
Read more: Maximize Your Mobile Game's Success: What's the Cost of Hiring a Top-Notch Development Company?
According To The Report, iPhone Users Use More Gaming Apps Than Android Users Every Month
Arbitron Mobile research revealed that approximately 86% of iPhone owners and 76% of Android owners play mobile gaming of this total population. Their "Arbitron Mobile Trends Panel" report also looked into mobile gaming activity across platforms as well as activities performed with these mobile phones by consumers, such as playing music.
Game on
- Arbitron Mobile conducted an in-depth research project with 12,000 US consumers who own iPhone, Android, or BlackBerry smartphones and are aged 18 or above. Participants voluntarily installed a software meter onto their devices so the company could track their activity and keep an accurate tally.
- Mobile gamers make up 788.8% of our survey group and spend more time using gaming applications than other types. On average, mobile gamers logged almost 10 hours daily within mobile gaming apps in December alone.
- By operating system, the iPhone app user base spent an estimated 12 hours and 23 minutes each month playing game apps; Android active users spent 8 hours and 22 minutes gaming apps during December.
- iPhone owners tend to spend longer using their devices and experience more app sessions each month; Android owners averaged 94.6, while those owning iPhones averaged 151.5 sessions on average every month.
- Apart from gaming, this research examined how consumers utilize mobile devices beyond gaming for various functions - for instance, 78.8 percent accessed social media via their phones.
- Mobile messaging (including SMS and MMS ) was utilized by 96.4 percent of mobile users, underscoring its reach as an advertising medium for marketers. Furthermore, 99.3 percent of mobile device owners used them for browsing purposes.
Different games
- One of the greatest difficulties in mobile gaming lies in creating apps that remain popular over time with customers; Words With Friends remains the top consumer favorite mobile game.
- Twenty-six percent of iPhone owners and sixteen percent of Android users played Words with Friends each month; iPhone owners averaged an impressive average monthly session count of 79, while Android users had just over sixty sessions each month.
- Scramble with Friends was the second-most-popular mobile game, drawing in 10% of iPhone and Android users and garnering an average of 25.7 game sessions monthly across both operating systems. The least popular app was Songpop, which only represents 6.1 percent of Android and iPhone owners. The average user completed 20.5 gaming sessions.
- Monetization: whether through in-app upgrades or paid apps, marketers in 2024 must prioritize maintaining user attention on mobile.
Six Mobile App Monetization Models To Consider
Selecting an effective pricing strategy for your app can have a direct effect on its profitability, so to maximize revenue generation, all viable strategies must be explored; some keys of mobile app development for moneymaking app considerations are listed here.
In-App Advertising
Though our application is free for users to download and use, you can make money by engaging with ads displayed within it and making transactions that generate profits using an in-app advertising revenue model that has proven itself profitable. This model provides various formats of ads - interstitial ads, banner ads, video ads, native ads, and text ads, to name just a few. How much money do app ads bring in? Depending on their nature and advertising purpose, app ads generally generate from $0.10 up to $10 in average revenue per ad impressions.
In-App Purchases And Freemium Model
Freemium is the preferred approach for non-ad apps to monetize themselves without advertising revenue streams. At Free The Apps, users may access and utilize the application free of cost; however, to purchase certain virtual elements within it, such as additional lives, ad-blocking capabilities, premium app content, game currency, or additional features that require payment from users.
Subscription (Software-as-a-Service) model
Subscription models provide one method of app monetization: mobile app development companies may charge users weekly, monthly, or annual subscription fees to access services like Spotify, Google Music, or Netflix. This model works well when considering cloud-based solutions as well as audio/video apps like these.
Sponsorship
Sponsorship can be another effective means of monetizing mobile apps, especially apps with existing regular users and that target brands in similar market niches. When considering app monetization strategies, two options should be kept in mind:
- Equally, divide revenue from the mobile app.
- Set a monthly sponsorship fee.
Weather Channel apps and similar businesses rely on this monetization model for success in their market.
Crowdfunding
Crowdfunding can be an excellent way of monetizing mobile apps in 2024. To raise funds and market your app, make use of crowdfunding platforms like Kickstarter, CrowdFunder, Indiegogo, or Fundable to showcase your idea or publish an MVP version.
Affiliate Links
Sub-sponsorship is another method for increasing app income; rather than awarding advertising rights directly to one organization, you negotiate with several interested parties and include their reference links within your application. If your budget doesn't stretch to cover costs from just one sponsor alone, sub-sponsoring offers another solution for increasing app profits.
After understanding how apps earn money and key factors to keep in mind when choosing app monetization strategies for their businesses and future trends in mobile app market trends, we will then go on to discuss which one may work best.
Conclusion
Submitting apps to stores opens up many doors of opportunity when it comes to earning potential. All it requires is careful examination and optimization of each opportunity that presents itself. The potential for earning significant revenue from mobile games, particularly on the iPhone platform, is undeniable. Leveraging the popularity and accessibility of mobile gaming can lead to substantial daily earnings, reaching up to $2 million.
However, success in this competitive market requires strategic planning, engaging gameplay, and effective monetization strategies. Understanding user preferences and trends, coupled with continuous innovation, is crucial for sustained profitability. With the right approach and dedication, tapping into the moneymaking apps mobile gaming market can indeed yield remarkable financial rewards.
