How Much Can You Earn With a Mobile App?
| How Much Can You Expect To Earn?
Well…it is definitely a very hard question and hundreds of factors can influence your final income. But in this chapter, we will try to show you some average numbers, as well as ways and monetization models that you can use in your app.
Choosing the right platform is one of the most crucial questions during the development process. The importance of this factor is going down, as there are many cross-platform technologies (like Flutter for example) but it’s still very important and many factors can influence it – like the overall number of users, possible revenue, popularity etc.
In general – Android keeps more than 71% of the global app market usage, while iOS only gets 29%, but in the income, it is opposite – due to the higher user’s payment capacity, iPhone users are willing to pay 2.5 times more money on apps than Android users. This trend is changing, and it is expected to be on the same level by the end of 2023. If your business model depends on downloads then you should consider developing your app for Android – as people, they use almost two times more apps than on iOS.
You need to also think about where to launch your mobile app from a geographical perspective. Right now, the most profitable market is North America but in upcoming years it is expected that Asia will take its place as markets in India and China are growing constantly.
| What Are The Most Popular Models of Monetization?
Choosing the right platform is the first step and choosing the best monetization model is the second one. Currently the most popular models are:
- Free apps – although the apps are free for the users, you can still make money on it from generating advertising revenue. In this model, it is important for you to generate the maximum possible amount of downloads. There are a lot of possible in-app ad formats and types – classic banners, videos, native advertising and more.
- Freemium apps – if you are not considering ads in your app, partially free apps can be a good choice for you. In the freemium model users can use some features of the app for free and later decide if they want to pay or subscribe. This is one of the most popular models right now. Thanks to in-app purchases users can buy some additional content like lives, clothes, remove the ads etc. One of the popular strategies is to build popularity with the free content and if they get used to it, convince them to pay for what they like.
- Paid apps – this is a very simple model. Users pay a one-time fee to download the app and they can use it forever. In the past it was a very popular model, it’s still used by some types of apps (for example icon packs), but now it’s a rare model because revenue in this model is a bit lower and you need a constant wave of new users.
You chose the platform and monetization model – but in what app category are the apps bringing in the highest revenue? Latest data shows:
- Gaming apps – more than 70% of the revenue generated on both mobile platforms come from mobile games. This market is still growing fast as mobile phones offer high quality graphics and gaming everywhere you go. It is also rich in different monetization models..
- Dating apps – almost 140 million people in the world are using dating apps, that is a huge base of potential customers. Another plus is the fact that most of them are monetized by subscriptions and gives their owners a steady, predictable source of income.
- Fitness Apps – another huge market with growing popularity, which is dominated by global players. The habits of people are changing, a healthy lifestyle is becoming more and more popular. Also this industry is backed up with technology, people love to use smart bands, fitness trackers etc. As a mobile app development agency we helped to develop one of them – read here the story of Compete Impossible.
- Streaming / video / entertainment apps – since the epidemic of COVID-19 people have more time to spend on entertainment – this is one of the biggest reasons why entertainment apps like TikTok or streaming apps like Netflix grew so much last year.
- E-education apps / remote work apps – same situation here, since kids can’t go to schools and parents work from home, the popularity of remote work and education apps is growing constantly. Everyone knows Zoom now! Similar to dating apps, many of them are based on subscription models.
It is very hard to predict how much money you can earn with an app as it is influenced by many different factors. The light at the end of the tunnel is the fact that the whole mobile and web app market is constantly growing and analysis predicts that it won’t stop growing – last year the global app revenue reached $582 billion.
Data shows that the average revenue of one of the top 200 global apps is around $82,500 per day. But the average of the top 800 falls down to…$3500. Of course, it also depends on the type of the app. Below we will give you a couple of examples of apps and their income:
- Wattpad – an app with online stories made last year $800k in revenue
- PUBG – a battle royale type game mad $146 milion
This gives you an indication of the amount of revenue your app could generate if you pick the right platform and monetization strategy that works for your app idea.
Our top 5 tips for how to turn your idea into an app
The technology world is currently beaming, with over 3 million apps available in the Apple App Store and Google Play Store today. Many businesses and individuals ...READ MORE >