Have you ever thought about how much revenue your mobile app could generate? The answer is dependent on a variety of criteria, ranging from platform to monetisation to category. The combination you select may have an impact on the revenue generated by your app.
On both the Apple App Store and the Google Play Market, there are over 3 million apps. However, even if many of them can create millions of dollars, only a small percentage make serious revenue.
If you want to create and monetise your app, there are various factors you should consider.
Things to Think About While Developing Your App
- The distinction between iOS and Android
- The most widely used monetisation models
- App categories that make a profit
1. The distinction between iOS and Android
Due to variances in market shares, users’ payment capability, and overall platform popularity.
In terms of market share, iOS accounts for around 29% of the global market, while Android accounts for over 71%. Despite this significant disparity, iPhone consumers spend 2.5 times more money online than Android users.
This year’s opening few months, the top 100 app publishers earned over $135 million across both stores. iOS apps account for 62% of total income, while Android apps contribute only 38%.
While the App Store still outspends Google Play in terms of user spending, the difference between the both is expected to narrow in the future, with the split expected to be even by 2023.
If you’re looking for downloads, the App Store falls short of Google Play in that department: the App Store’s download percentage is nearly twice as low as Google Play’s.
While Apple may provide you with more paying customers because of its significant position in high-revenue markets, Google can provide more extensive market coverage and downloads.
The Most Common Monetisation Methods
It’s vital to be aware of your monetisation plan after you’ve chosen your app platform.
Apps that are available for free
Yes, money may be made through free apps. You may make money with free apps by having users interact with the adverts presented in the app.
The main advantage of this monetisation approach is the wide range of ad formats available, allowing you to pick the one that best meets your goals in producing cash and engaging customers.
App Categories with the Highest Profitability
Another factor to consider is the type of app you want to create. The revenue model you choose and the store you utilise are both influenced by the app you choose.
Apps for Gaming
In the first half of 2020, Google Play and the App Store made $50 billion in sales. Mobile gaming contributed $35 billion to the total. The worldwide games market is predicted to overgrow, reaching $196 billion by 2022.
The game genre usually determines game app monetisation strategies. In-app purchases are a powerful means of revenue in genres like simulation and casual games, which encourage consumers to have a higher degree of involvement and game ability.
Apps for dating
Dating apps are another popular genre. Dating apps currently have 139 million users worldwide, but that number is expected to rise to 161 million in the coming years.
Subscriptions are the most popular way for these apps to make money, and they can be pretty lucrative. For example, expenditure on Tinder has totalled $433 million across both stores. Tinder earns money by charging users for premium features such as more likes or unlimited swipes monthly or annual.
Apps for Entertainment
Instead of paying for cable, more and more consumers opt for streaming alternatives for their entertainment demands.
YouTube and TikTok are two of the most popular apps in this category. This year, YouTube has made $431 million in revenue while providing most of its content for free and making cash through in-app adverts and subscriptions.
TikTok, on the other hand, employs a combination of adverts and in-app purchases to earn $421 million in income. This method allows users to buy TikTok coins with real money and send virtual gifts to their pals.
Apps for Fitness and Training
By 2027, the worldwide fitness app industry is predicted to have grown to $14.64 billion. In addition, the niche has become a sought-after piece of the pie as advanced technology’ entry into the healthcare sector grows.
Sweat is a beautiful starting point for new app developers. The software quickly grew in popularity after its debut in late 2015, resulting in annual revenue of $100 million. In addition, sweat’s developer developed an online community that turned followers into paying consumers by offering monthly or yearly exercises, yoga videos, and meal plans.
Apps for Learning Languages/other Educational Purposes
Educational apps have the potential to make a lot of money. For example, Babbel is a popular language learning software that focuses on informal learning and offers 10-minute lessons.
Babbel offers a subscription-based strategy rather than in-app adverts or sales that could distract learners.
This strategy has garnered them $115 million in annual revenue.
As you can see, depending on your app’s category, the difference in revenue can be significant.
How Much Can a Mobile App Earn You in 2021?
The mobile app market is already significant, but it’s only going to get bigger, giving you plenty of opportunities to produce a high-earning app.
If you wish to develop a very profitable app in 2021, it’s important to examine the platform, your monetisation strategy, and your app category.