he number of users using smartphones and handheld devices is growing by leaps and bounds. And so is the number of applications that are treating users with a personalized experience by offering tailored services based on the user’s interests, location, usage behaviour, and much more.
Mobile applications have become a staple for every business today. They have become a must-have tools companies are increasingly investing in so that their consumers stay in touch with what they have to offer.
According to the sources, ‘92 per cent of time spent on mobile is spent using apps, social networking and communication apps taking up 44 per cent.’
And let’s be honest. Companies aren’t developing apps just for fun or to solve a major crisis. The market involves a lot of money. Creating an app is a business that makes you tons of money; billions of dollars each year in revenue. Such figures impel startups and business owners to go mobile and release their app to make money.
However only a handful of well-thought, responsive applications bring you profit. A majority of others are duds and don’t make any money at all. So building an app is merely like peeling the first layer of the onion, generating money from it is the crux of the matter.
Providing the exact amount of money an app can make can be incredibly difficult. But this is for sure that you can earn a considerable amount of money on mobile apps.
How exactly can this be done? If you own an existing app or thinking of developing a new one because the existing one isn’t performing as expected, there’s still time to make the adjustments.
This post covers things you should consider before moving on to iOS or Android app development– your call!
Things To Take Into Consideration When Developing An App
The very first step towards building an app is to understand the type of your application. What is the objective behind your app idea and what purpose you wish to fulfil?
Be clear of the issues you are targeting, the services your app is offering and the impact it would have on the market. Also, be clear of the manner, your app will be useful for the audience and their needs.
2. Target Audience
You are making an app for the people, right? But which type? What do they require? How much money they can pay? To generate a good amount of review through app monetization strategies, you need to examine your target audience prior to rolling your app out.
3. Competitor Analysis
Performing competitive analysis will help you recognise how you can enhance your app as well as a business strategy. The insights you gather will give you a hint about what strategies do applications as yours prefer, the profits they’ve earned or whether there is any loophole you can turn into an opportunity for your app.
Ultimately, this helps with decision making.
The set of technologies introduced in your applications increases the user experience and makes it stand out among your competitors and adds to your income from mobile apps as well.
Let’s now move on to the different monetization model you need to look into to earn from your apps.
Mobile App Monetization Models To Consider
Deciding on the most suitable monetization model greatly affects the app revenue. Here’re the most common ones:
- In-app Purchases
In-App purchases are among the successful ways to generate revenue through applications. Here the application is free to use but requires users to pay some amount to unlock certain other premium features. Most of the applications are free to download, but it is the in-app purchase technique that makes the actual cash.
Gaming apps make a lot of money by rendering in-app purchase techniques such as extra lives, premium app content, blocking ads and more.
Example: Clash of Clans earned ~$1M/day on purchases.
- In-App Advertising
App owners earn money by allowing other brands to display their advertisements within the application. This app monetization model is a proven strategy that is highly profitable. In-app advertising can be designed into different formats: Video ads, Interstitial ads, Text ads, Banner ads, Native ads and so on.
- Crowdfunding platforms
Crowdfunding simply means raising funds from a large pool of investors where each offers a small amount of contribution. Such type of funding is one of the profitable ways to monetize apps for free.
In this technique, the app idea is exchanged or an MVP version is published on platformslike CrowdFunder, KickStarter, Indiegogo and Fundable to raise funds and market the app accordingly.
We hope you are well-versed with the tips and tricks to make your app a huge success while earning money through it.
In A Nutshell
The mobile app market has grown substantially over the years and is predicted for continued growth. But only those apps that are developed after considering every aspect will survive the test of time.
As discussed above, there are several methods to take into account to generate revenue from your app. All you need to do is rummage through your options and make the best out of them. Also, make sure your app offers tangible benefits.
If you wish to leverage the best out of the best, earn better ROI for your business or need assistance in monetizing your app, get in touch with a leading mobile app development company like Appventurez.