When it comes to building an app, many entrepreneurs and developers are driven by more than just passion projects. They're looking for ways to generate revenue and turn their mobile application into a profitable business. After all, the global app market has seen explosive growth in recent years, with over $460 billion in revenue generated in 2019 alone.
But how do you monetize your app? The answer lies in understanding the various revenue streams available to app developers. From traditional advertising to e-commerce and in-app purchases, there are plenty of ways to generate income from your mobile application.
Mobile App Revenue by the Numbers
The sheer scale of the global app market is staggering. According to industry data, revenue from Google Play and the iOS App Store exceeded $70 billion in 2018 – a 22.7% increase from the previous year. With over 200 billion app downloads in 2019 (compared to 140.7 billion in 2016), it's no wonder that developers are eager to cash in on this lucrative market.
What Types of Apps Make the Most Money?
While entertainment apps like Spotify, Netflix, and Tinder tend to dominate the top-grossing charts, there are many other types of apps that can generate significant revenue. Whether you're designing a video game or e-commerce app, there are several routes you can take to earn money and monetize your app.
How to Monetize Your App
One of the most common ways to monetize an app is through subscriptions. Brands like Netflix, HBO Now, Amazon Prime, and Spotify offer premium content for a monthly fee. Apps that offer in-app purchases or subscriptions may be free to download and access, but offer tiered content or additional services that users can pay for.
Video game apps are a great example of this type of revenue model. Users can download and enjoy the app's main features for free, and then pay for things like "coins" or gated access to exclusive features.
More Ways to Make Money with Your App
If you don't have a massive user base (yet) or your app is not set up for in-app purchases, there are other common models for app monetization. In-app ads can be an effective way to generate income from your app, especially if you're targeting specific demographics. Some of the main ad platforms for mobile apps include Google's AdMob, Unity Ads (games), and Millennial Media.
Another option is to offer a premium and "freemium" version of your app. This hybrid model allows users to try out your app for free before deciding whether or not to pay for additional features or services.
Free Trial Period
Finally, offering a free trial period can be an effective way to monetize your app. By giving users a taste of what your app has to offer, you can generate interest and encourage them to upgrade to a paid version or make in-app purchases.
In conclusion, there are many ways to monetize your mobile application. Whether you're targeting entertainment enthusiasts, gamers, or professionals, there's an app revenue model out there for you. By understanding the various options available and developing a solid user acquisition strategy, you can turn your passion project into a profitable business.