The rapid growth of app downloads partially compensated for this downturn. The number of new apps downloaded in 2022 was 255 billion, which is an 11% increase year over year. The number shows that consumers are open to trying new services and experiences.
The financial potential of each category is a new benchmark. According to the State of Mobile Report 2023, six app categories have dominated consumer spending. The top six categories were video streaming, video dating, video shorts and sharing, audio, music, and book apps.
Only four apps reached the $1 billion mark. From 2021, the number of apps that earned $10 million decreased from 1428 to 1419. The global app market will rebound as the consumer is about to spend $33.9 billion in the app store at the start of 2023, more than any previous quarter.
In-app purchases and subscriptions are the primary sources of revenue for mobile apps. Ad spending in 2023 is expected to reach $362 billion.
We will then drill down to the top app categories that offer the best earning potential so you can be better informed about the mobile app earning possibilities by sort.
The Most Successful Mobile App Types That Generate Revenue For Businesses
The following types of mobile apps have learned to take advantage of this growth:
Game Apps
App users have been drawn to games because they offer a fun escape from reality. In the past few years, the app gaming market has seen a resurgence with new games, graphics that look like consoles, and gameplay.
Since 2018, consumer spending on mobile games has steadily increased. In 2022 however, mobile game spending will drop by 5% to $10 billion.
What game genres will be the most popular in 2022?
- The top four role-playings (RPG) games are Pokemon Go, Lineage W, and Monster Strike.
- In 2022, this genre will generate $12.1 billion in in-app sales. The top performers are Clash of Clans and Three Kingdoms Tactics.
- In 2022, Match will generate $8.7 billion in consumer expenditures. Candy Crush Saga, Homescapes, and Match were the top-selling games.
Highlight the top apps of the category.
Honor of Kings
The Honor of Kings, billed as the most-played game in the world, delivers a competitive gaming experience for over 100,000,000 mobile users. The honor of Kings was created after Chinese gaming giant Tencent's publishers failed to produce a mobile game of League of Legends. This game allows players to set up online competitions between colleagues quickly.
The app is freemium with in-app purchases. The game generated over $2.2 billion worldwide in in-app revenue in 2022. This makes it the most profitable mobile game. The honor of Kings has also been downloaded over 280,000,000 times worldwide since its launch in 2015.
Genshin Impact
Genshin Impact is a popular open-world RPG. The mobile game uses a gacha system that is free to play with add-ons. This game ended the year with global revenues of $4 billion and 126.4 million transferable installs.
Candy Crush Saga
Candy Crush Saga, a match-three game popular with many people, is an addictive puzzle. This game's goal is to get as many points as possible by matching candy rows. The game is available for free. However, users may purchase a gold bar to get more moves, extra lives, and other features. Some estimates claim that the game generates over $600,000,000 in revenue annually.
Social Apps
Social media usage worldwide reached 4.26 billion users in 2022. This is equivalent to more than half the world's population. By 2027, this number will grow to nearly six billion.
U.S. social apps account for more than a quarter of consumer spending worldwide, which is over $7 billion. The U.S. accounts for $2 billion of that. This category is also growing in popularity as new apps are being installed at a 15% increase yearly, with a 25 percent growth rate in China.
In 2022, new markets will also grow outside of the three major ones (USA, China, and Japan). The spending in these markets increased to nearly 40%, up from 30% in 2019. Globally, spending on social applications increased significantly between 2019 and 2022.
Regarding microtrends, the live video streaming app and the short video apps make the most revenue. New media-sharing networks like BeReal, LiveIn, and others have also made significant strides to win the category. However, their future is still uncertain.
Here are some of the most popular social media apps on mobile.
TikTok
TikTok, originally a platform for sharing short videos, has evolved into a video service that caters to all types of users. TikTok relies on advertising revenue and gift purchases made in the app (using in-app currencies) to generate revenue.
TikTok will be the second app (other than gaming) to reach $6 billion in consumer spending. The cumulative number of downloads for the app is impressive, with over 3.5 Billion.
Bigo Live
Bigo Live allows you to connect and watch streams live and launch them. Bigo Live is a casual communication tool that uses the latest technology, such as augmented reality, artificial intelligence, and streaming.
Most revenue generated by this leading platform for live streaming is from in-app purchases. Bigo Live has the potential to overtake its rivals, as it boasts 36.8 million monthly active users and an annual revenue of $1.997 billion.
Twitch
Twitch is a popular video streaming platform that offers a variety of genres. However, Twitch's content offerings focus on game streaming and esports. Twitch is expected to make $2.8 billion through worldwide in-app purchases in 2022.
The revenue-sharing model it offers to broadcasters is also a boon to its piggy bank, as many of the most talented players flock to this platform. The average concurrent viewership in 2022 was 2.58 million.
Apps for Entertainment
In 2022, content platforms and over-the-top services (OTT) will also be dominant. Entertainment apps are responsible for consumer spending, which is expected to reach $1 billion per quarter.
This spending increase is due primarily to the U.S., Chinese and Korean markets, which have one of the most saturated OTT environments. Spending on entertainment apps hit an all-time high of 4 billion dollars in the U.S. in 2022. This is more than twice the amount spent in 2019.
Disney+ regional launch in Europe has led to a concentration of European markets between 2020-2022. This experience shows that these markets remain open to new OTT services.
OTT apps are also attracting impressive amounts of advertising dollars. The State of OTT Advertising Report in the U.S., 2023, states that almost 15% of digital ad spend occurs on OTT platforms such as Hulu Pluto TV, Tubi Peacock, and Paramount.
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YouTube
YouTube is a significant source of revenue for consumers worldwide. YouTube makes money through advertisements and subscriptions, such as YouTube Premium. YouTube Shorts' short videos, which have 50 billion views per day, will reach $5 billion in consumer spending over the next ten years. YouTube's ads revenues have declined 7.8% in the last quarter. However, its advertising branch still has a substantial revenue stream, bringing in more than $29.24 Billion in revenue by 2022.
Disney+
Disney+, which offers popular entertainment from Pixar and other providers, is available in more than 59 countries. This geographical spread translates to 12.1 million subscribers. The total revenue generated by paid subscriptions will be 164.2 million dollars in 2022. Exclusive releases and a global audience make it one of the most lucrative mobile apps for entertainment.
HBO Max
Warner Bros. is a bright spot. HBO Max, part of the Discovery Portfolio, also has the spotlight thanks to its relaunch on Amazon Channels. HBO Max and Discovery+ all ended 2018 on a positive note, with 96.1 million subscribers worldwide. The total revenue for the entire year was slightly lower than in 2021 at $33.8 billion.
Dating and Social Discovery Apps
The year 2022 will be a big one for dating apps. Consumer spending in dating applications reached an all-time high of $6 billion, with a 12% increase year over year and a 91% rise compared to spending before the pandemic. Canada, Mexico, and India saw the highest growth rates. Canada, Mexico, India, and the U.K. are the markets that will see the highest growth rates in 2022.
In 2022 the global downloads for these apps reached a new record, with over 1.9 billion installations. Tinder, Bumble, and Hinge are the top 3 dating apps. They have stayed the same since 2021. Wizz is the number one social discovery app.
Let's look at the app revenue for this category, using some of the most popular dating apps.
Tinder
Tinder will dominate consumer spending in 2022 with $1.79 billion in direct revenues. The 10% increase year-over-year in users to 10.9 million is also driving this ascent.
Tinder is a free dating app that offers a variety of features, including Boosts, Super Likes, subscription subscriptions, and purchase options. Tinder adjusts its pricing according to the age of users, which is a first for dating apps.
Bumble
Like its competitors, Bumble helps you connect with people who share your interests. Bumble uses a similar monetization strategy to Tinder with its premium features, Spotlight and Boost. Bumble had a revenue of $694.3 million in 2022. Its number of paying users grew by 10% to 3.2 million.
Hinge
Hinge is gaining ground on competitors by focusing on meaningful connections instead of casual meetings. Like other leading companies, Hinge relies heavily on subscriptions to generate revenue. Its direct revenues increased by 44% to $284 million in 2022.
Book and References
The category of books and references is perhaps the most unexpected. Audio entertainment apps will drive this category's global dominance in 2022, with consumer spending of $1.9 billion.
The growth of this category began in 2021 when revenue from the global market for book apps and references increased to almost $7 billion. The payment for this category will surpass $13 billion by 2026.
Microtrends include webtoons and web novels. Audiobooks are also popular. The global webtoons market, for example, was worth 3.7 billion dollars in 2021, and it is expected to reach 56 billion dollars by 2030. This represents a 36.8% CAGR from 2022- 2030.
Audible
Audible, an Amazon subsidiary, offers a wide range of audiobooks and podcasts. Audible is one of the most extensive audiobook subscription services. It provides users with exclusive content such as podcasts, meditation, and sleep tracks.
Users must sign up for a paid membership plan to access titles. In 2023, Audible plans to offer non-members ad-supported access to selected titles.
Piccola
Piccoma, a popular app that revolves around the manga genre, is one of its most successful apps. The webtoon application topped the charts in 2022 with a quarterly revenue exceeding $87,000,000.
The monetization method on Piccoma is to offer readers two or three episodes ahead of time. They can view them for $0.18 to 0.26 cents per episode or wait for one week to get the free chapter.
Read More: How to Create an Excellent Mobile App Development Team?
Good Novel
Good Novel is both a reading community and a digital platform with an extensive collection of web novels. The forum welcomes new writers who can apply for a job after completing 5,000 words. The platform allows readers to access freshly baked content. They can also become VIPs by buying a coin set to unlock paid sections.
Apps for streaming music and videos
Streaming apps have the highest profit margins in the non-gaming industry. A SensorTower 2019 report shows that mobile users in the U.S. spent over $1.27 billion on subscriptions to the top streaming apps. We're talking about a $2.2b global spend.
The subscription revolution has been a boon for developers. Finding a user-friendly service that users will pay for regularly is rare. It may not matter how much money is made per customer as long as the revenue streams are consistent and there's a large enough audience. The preference is for recurring payments over one-off, unpredictable purchases. This applies especially to app categories that offer streaming content.
Apps for Education
Education apps accounted for 8,29% of the total apps in the Google Play store during Q1 2018. Education apps have a high retention rate. This is probably due to the guilt that prevents weak-willed users from uninstalling them. The apps are unique and have an added value that keeps users returning to them.
The free version should be an invaluable resource for the users. Apps in this category can feature premium content "additional." Users should not be forced into upgrading but instead, be made aware of the benefits of a subscription.
Apps for self-help, fitness, and health
Fitness apps will gain popularity along with apps for meditation like Calm as more people become aware of their physical health. They also want to monitor progress. Apps for health and fitness include:
- Self-help apps, e.g., Mobile fitness videos and coaches
- Track your calories and diet with this Calorie Tracker
- Audio guides and meditation coaches
- Trackers and plans for running workouts
Fitness and health apps are also social networks for athletes, where they can compete with each other to complete different activity goals. Apps are compatible with various activity trackers, wearable devices, and other accessories that increase upselling and cross-selling opportunities.
What are the ways that apps generate revenue?
There are several monetization methods that most apps use. In a previous post, we discussed the various ways to monetize mobile apps. The two most common options are in-app advertising and freemium.
Enjoy Freemium
Freemium, also known as "in-app purchase," works just like a restricted version of the entire program. This allows users to use and test your app for free. It is well-known that this method increases user loyalty and ensures steady revenues. Users need to try apps before first trying them.
Freemium apps offer some of the world's most popular and profitable applications. Users who want more features can subscribe to the app.
In-App Ads
You can choose to let users use your app without charging them. Ads are displayed in many mobile apps, but this can cause some problems.
- Compromise in user experience: It is impossible to satisfy the user completely with an advertisement.
- Inappropriate ads can leave an unfavorable impression: The majority of ads are created programmatically, and it is impossible to verify or control the content that your app advertises. It is usually safe to trust big sponsors, but this does not guarantee 100%.
Why in-app purchases are essential for money-making apps
It is possible to reach a higher level without purchasing an item, but buying one can help.
Some people are impatient when playing games on their mobile devices. The goal is to improve the game and have a good experience.
It can be frustrating to get stuck on a level.
Select the in-app purchase model
This is when a simple purchase in the app comes into play. The user can pay money to speed up the process of leveling up.
Like other gaming apps, Pokemon Go makes it easy to make in-app purchases with its coin system. Instead, They would say that an item cost $0.99, but they'd use "100 coins" or some such thing.
Read More: 7 Tips For Effective Mobile App Development
How In-App Purchases Allow You to Make More Money with Mobile Apps
The Pokemon Go strategy we mentioned is a great way to get people interested in buying more coins. The users are more willing to pay because they believe they will get more for each dollar they spend.
A penny is often the equivalent of 100 coins. If you buy 14,500 coins, you will get 30% more for every dollar you spend.
It's The Winning Formula
Let's go back to the discussion we had about revenue versus profit. You can have both a fixed cost and an increase in revenue.
Consider the information we've provided if you want to create an application for a game on mobile. A good strategy for coin conversion can lead to success.
Paid App Services
Some application concepts need to be more complex to be offered for free. Apps that offer payment, shopping, banking, and similar services are paid.
People can subscribe to the plan for a reduced transaction fee if they use a product frequently.
The Best Apps to Earn Free Cash on Mobile
This section can provide insight on how to make money from your app for businesses.
1. Swagbucks
Swagbucks, a free version of the micro-jobs website that lets users earn money online by performing small tasks. These tasks are usually things that people do every day.
Users earn points every time they complete a given task. The points earned by users can be exchanged for Amazon gift cards and other cool prizes.
The app allows users to collect points through a variety of methods, including:
- Watching videos
- How to fill out polls
- Enjoying Games
- Coupons are available for purchase.
- Taking paid surveys
- There's More
Watching videos is a popular way to earn money on Swagbucks.
Videos play automatically. Users don't need to do anything else to get free money.
Swagbucks offers a $5 registration bonus.
Users can make $30 per month just by watching comedy clips, trailers for games, or hot films. They can also earn more money by doing other things.
2. VIPKID
VIPKID, an online tutoring service that allows users to remotely teach English children from different countries. This is the highest paying app on this list.
Earnings range from $14 to $22 an hour. Direct deposit is the payment method for those who are teaching English.
VIPKID is a platform that allows users to earn more money, but it also requires the most effort.
3. Acorns
Acorns is an app that helps you invest your spare change. Users can start investing with $5 in their portfolio after registering for the app.
App will track each users' bank accounts. The app will then automatically invest the change from each user's online daily purchases.
The app, for example, will round up $1.75 to $2 if someone buys a cup of coffee. The $0.25 will be invested into the "smart-portfolios".
Acorns users don't need to be experts. The app takes care of all the investment parts.
Sign up for the app and fill out your financial profile. The app then suggests the best investment for that particular profile.
4. Rakuten (formerly Ebates)
Rakuten offers users the opportunity to get money back on items they purchase through their app.
Cash back programs can help you save on online purchases. Users can receive rewards like extra cash, gift certificates, and much more.
Rakuten receives a commission when a customer buys a product from a partner retailer on the internet. A portion of this is given back to the customer in cash.
Some retailers will give more cash back even though the rate is lower than those of their competitors.
Rakuten is a shopping app that allows users to earn money by purchasing online.
Rakuten is different from its competitors in that you can use the money back that you earn to shop at their stores. The in-store rate for shopping is between $1 and $2.
Users can earn gift cards by inviting friends to join the app.
5. InboxDollars
InboxDollars has a similar micro-jobs website to Swagbucks. It also offers a free mobile app that can be downloaded from the Google Play Store.
InboxDollars allows anyone to earn money through small tasks, such as:
- Online Shopping
- Reading emails
- watching videos
- Online games
- Referring friends
- More.
After receiving the $5 bonus, users can begin earning money. Cash outs require a minimum of $25.
Users can earn up to $10 per hour by completing surveys.
The videos in this app are not played automatically. It's also not a great way to earn passive income.
InboxDollar has an affiliate program as well. The app lets users earn money by referring their friends.
6. Survey Junkie
Survey Junkie, an app for online surveys from a market research firm with over 10 million users worldwide is available. This is among the top survey apps of today, and also one of the best-paying ones in the category.
You can make extra cash by giving your opinions about the products and services of featured businesses and brands.
Users can earn Amazon Gift Cards or PayPal Money after completing surveys. This popular app allows users to earn $10-$20 an hour.
Many people love Survey Junkie because they are able to move from one survey straight into another if they do not qualify. This allows them to earn more money.
7. Opinion Outpost
Opinion Outpost, owned by a market research firm, is a well-known legitimate survey site. They can earn rewards for completing surveys, testing products, watching ads and completing missions near them.
Sign up and create a profile to begin completing the surveys. Redeeming points starting at $5 is possible through PayPal, Amazon Gift Cards, or Virtual Visa Prepaid cards.
8. Instacart
Instacart, a side-hustle app that allows people to earn money while grocery shopping on behalf of others. Users can either prepare orders for grocery shopping or act as full-service shoppers, who deliver orders.
Instacart's full-service customers are independent contractors. They can therefore work whenever their schedule permits. Each order they fulfill is rewarded.
They can also keep all the tips that they get from their customers.
Instacart is a job that involves grocery delivery. Those who are allowed to register must meet the following requirements:
- A reliable car is essential
- You must be at least 18-years-old
- Lift 40lbs
9. TopCashBack
The TopCashBack app is perfect for those who shop online a lot. The app has affiliate links for thousands of retailers.
TopCashBack receives a commission when people click these links. It then gives the cashback to users, usually around 7% of the purchase price.
TopCashBack is a popular website that allows people to earn money. However, there's also a mobile application.
Anyone can join TopCashBack.com for free. As a welcome bonus, new members receive $10.
In a coincidental way, PayPal requires a $10 minimum withdrawal before it will allow users to withdraw. You can redeem your cashback rewards in the form of Amazon gift cards or Amex gift certificates.
10. Seated
It's for those who enjoy eating out and earning rewards. The app rewards users who book reservations via the app.
Gift cards are the rewards. The average user earns between $10 and $50 every time they book a reservation through the app.
Seated can help people who dine out frequently earn over $200 per month.
Many restaurants want to find new ways of attracting loyal customers. Owners of restaurants are prepared to offer rewards in order to maintain their business.
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Summary
Mobile games and streaming applications are the two most profitable app categories, but they also require the most extended development times.
The mobile app market is dominated by games that are more popular than all other categories. Most of the most successful non-game applications are available on a monthly subscription.
Tinder is the second-highest revenue dating app in the world, right behind Netflix.
Apps for health and fitness (dieting, running, activity tracking) also offer many in-app purchase options and monetization possibilities to the publisher.
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