How Much Money Do Apps Make ?
Apps have the potential to generate billions of dollars in income each year. However, the majority of apps that succeed in doing so are few and far between. The vast majority of the apps are flops that don't make any money at all. As a result, estimating how much money an app can make is a tough task, especially given the enormous number of apps available and the wide range of revenue they generate for their developers.
Let's look at it through the lens of the top apps in the industry's current revenue earning potential.
On a daily basis, apps in the top 200 on the app market make roughly $82,500. When we look at the revenue numbers for the top 800 apps, we see that the daily revenue lowers to roughly $3,500. This disparity may be seen across genres as well; for example, game apps generate roughly $22,000 per day, whereas entertainment applications generate only $3090 per day. As a result, you won't be able to get a consistent answer on how much money your app can produce.
The app market is continuing to develop, and industry analysts expect that this growth will continue in the future as well. Just consider this: mobile devices accounted for 52.2 percent of total online traffic in the United States in 2018. As a result, it's easy to see why so many people and businesses want to create their own mobile app.
So, if you have a great idea that you think will appeal to app store users, you should be aware that developing it will need a big expenditure on your part.So, before you invest such a large quantity, you might want to know how much money an app, specifically the one I'm planning to create, can make.
Tekrevol can help you understand the dynamics behind this model and provide a way for you to create an app that will generate you money in the long run and on a consistent basis.
The amount of money an app may make varies by niche, but if you're trying to expand your business into the digital realm, the mobile app sector is the perfect place to start.
The surge in mobile phone usage is a result of this tremendous money production. According to Oberlo, mobile phones accounted for 52.2 percent of all global traffic. This is a gold mine for firms that may lead to tremendous development, and industry leaders have already begun to use this platform to increase their return on investment.
Furthermore, SensorTower reports that the top-100 app development organisations or publishers generated an average of $130 million in Q1 2019, up 31% from 2014.
However, because there is no defined average for how much income an app can earn, you'll need to know how different niches perform inside the app ecosystem to figure out how much your targeted niche's expected returns will be.
You must decide on the market you want to target as well as the business strategy your app will use.
To make things easier, we'll go over some of the most popular business models and applications that are making a lot of money. To have a better grasp of the app development market, let's delve deeper into these areas.
The Use of Mobile Apps Has Gone Beyond Comprehension
Today's mobile applications aren't only restricted to smartphones. Applications are now available on Smart TVs. Smart TVs are already found in more than 70 million homes across the United States. Netflix and Hulu, on the other hand, are the most popular Smart TV applications today.
The most popular Smart TV apps are well-suited to the medium. Netflix, YouTube, Amazon Prime Video, Spotify, and other services already have a big user base. In a nutshell, apps are becoming an increasingly important aspect of television sets.
Furthermore, smart speakers like Alexa and Google Home are reshaping the app landscape. While the growth of these devices is expected to exceed $125.65 million, the ability to easily connect these devices with third-party mobile applications is what confirms the viability of mobile apps.
Furthermore, the prevalent mobile applications do not end there because the most popular game consoles have their own specialised app stores where players can quickly buy or download their favourite game applications
Finally, there are smartwatches!
Smartwatches are another area of technology that is rapidly expanding. Wearables are gaining traction in the digital sector, with predictions that they will account for 51% of all wearable gadgets by 2022. As a result, if you're an app developer, I'd advise making your app smartwatch compatible to give it a competitive edge and viability.
What Are the Revenues of Subscription Apps?
In-app purchases are another wonderful way to make money with subscription apps. Tinder is the best example of a connected money-making app. Although everyone can download the Tinder app for free, users must pay for certain services, such as unlimited swipes. This functionality allows users to find a match in an infinite number of ways.
Furthermore, Tinder's "Passport" add-on allows users to match with people in different cities, while "Boost" allows users to appear at the top of the pile in front of other Tinder users. The audience only had access to these in-app services if they paid for them, which brought in $407.4 million in revenue. If you've ever used Tinder, you're probably aware that the Plus subscription costs $9.99 per month and the Tinder Gold upgrade costs $14.99. As a result of these bundles and outstanding features, Tinder has become one of the most popular apps worldwide.
Bumble is another wonderful illustration of how mobile applications make money. This Tinder competitor has a user base of more than 50 million people and a 135 percent growth rate. The primary difference between Tinder and Bumble, though, is that Bumble is just for women.
The app was predicted to make $172 per minute in 2018 due to its significant visibility and $9.99 monthly membership bundle. Pandora, Tencent Video, Netflix, Hulu, and iQiyi are among additional subscription-based apps that make millions of dollars.
AnchorFree's Hotspot Shield is another example of a superb mobile software that has accrued significant value over time. The programme allows users to surf the internet anonymously while circumventing limitations and firewalls.
During the Arab Spring, the technology gained a lot of traction since it was utilised to get around official restrictions. The monthly subscription cost is $5.99 for a year of service. In addition, the subscription costs $12.99 on a month-to-month basis. Furthermore, in 2019, Hotspot Shield had received over 650 million downloads, making it one of the most popular apps on the App Store.
Wattpad is an app that allows users to read and write online stories. Wattpad has over a million downloads and $800,000 in income, according to Sensor Tower. The app's primary source of revenue is through the sale of stories to users. The app uses interesting, suspenseful, conversational, and real-life stories to intentionally hook users; however, readers must pay to read them.
Kayla Itsines' Sweat app is another wonderful example of a minimum-wage mobile application. Subscribers may access high-quality fitness videos, nutrition plans, yoga, and other health-related content through the app. The software was first introduced in 2015, and it now generates $100 million every year.
Which platforms may app developers use to increase their earnings?
The first thing you must address is the platform you will use to develop your app. Because every platform has a different market and a varied level of popularity among audiences, the answer to this issue is crucial because it can directly affect the potential of your app in terms of obtaining monetary returns.
App developers typically make a lot of money because there is always a demand for apps to be built. However, because the average income for Android developers is roughly $97,600, choosing to become an Android app developer may allow you to earn more.This isn't much less than the number of Android developers.
However, you should take these estimates with a grain of salt, as the top developers and development businesses in both the Android and iOS markets get a large portion of the total money generated by both platforms.
Smaller developers continue to earn less, but in recent years, they have made steps to ensure that their apps perform effectively by using effective marketing strategies through app marketing pros.
Developers are increasingly porting their programmes to platforms other than Android and iOS in order to increase profits by tapping into unexplored markets.
However, this should not be your first choice when creating an app. You should first choose between Android and iOS platforms, or both at the same time, to ensure that your product is present in the markets where the majority of the audience is.
iPhone app developers often charge more than Android app developers since the 'iOS' platform is more profitable. The money earned by your app, on the other hand, is greatly contingent on its success.
If your app is profitable on these platforms, you should think about spreading it to other platforms.
What Is The Average Revenue From Apps?
Apps are, without a doubt, some of the most profitable businesses out there right now. Global mobile app revenue is expected to grow by 200 percent in just four years, from 2016 to 2020, to $188.9 billion.
These results are mostly due to the popularity of a number of popular gaming apps. Gaming apps are among the most popular on the market. PUBG Mobile had $146 million in monthly revenue in July 2019. Every day, that's more than $4.7 million in revenue. Over 100 million people have downloaded the app worldwide.
PUBG Mobile, on the other hand, isn't a one-off hit. Other gaming apps also have outstanding numbers.In 2018, Epic Games' Fortnite generated roughly $1.9 million per day.
In 2018, the game that became a worldwide craze, Pokemon Go, earned roughly $800 million. In a year, that equates to $34 to a billion dollars in revenue.
Because many apps are free to download and use, the majority of their revenue comes from in-app purchases. In-app purchases in game apps have generated over $71.3 billion in 2020, according to projections. If you're creating an app, consider including the option of in-app purchases, as this money-generating option accounts for 98 percent of all revenue generated by applications.
Which platforms are the most successful in terms of generating revenue?
The platform you select to have your app developed on has a big impact on how much money it produces. Android has a 75.82 percent market share in the mobile industry, compared to 22.9 percent for iOS, making the former the clear winner in terms of app revenue in the current climate.
According to SensorTower, customer spending on these stores is predicted to grow at a CAGR of 16.8% between 2018 and 2023. Both the Google Play and iOS app stores have generated $123 billion in user expenditure in 2020, with the Google Play app shop leading the way with $78 billion.
These platforms answer the question that every business owner has when it comes to getting an app developed: "How much money can an app make?" While it comes to mobile apps, these platforms address the question that every business owner has when having their app developed: "How much money can an app make?"
While there is no definitive answer to this specific question, current forecasts suggest that the future of mobile apps is bright, and that the growth rate will only accelerate in 2022.
After you've decided on a platform and made that decision, you'll need to figure out how to monetize your app to generate millions, if not billions, of dollars. For this, we've compiled a list of three of the most popular income models in the market, which you can choose from depending on your niche.
What Are The Different Types Of Apps That Make Money?
Once you've made the decision to create an app, the journey doesn't end there. Nonetheless, it necessitates further explanation in terms of the type of application you wish to create.
Now, here's what most people do, and this approach doesn't seem to me to be valid – I mean, opting to make an app based on what you like, think, or prefer isn't the greatest way to get started with a mobile app.
The right method, on the other hand, would be to conduct market research and analysis, streamline any gaps, capitalise on the gap with your mobile application, and ensure success and scalability from the outset.
Several categories of the most financially successful application can be found on the internet. Liftoff, for example, made our life easier by issuing a report that shows the games that have risen to the top of all apps, making roughly $34.4 billion annually. You may easily extract the type of application you wish to construct from such reports.
Moreover, comparable reports are being produced on a variety of sectors that rely on mobile apps to generate significant revenue. We've compiled a list of them to give you an idea of which apps are likely to be profitable. Here are some examples of the most common sorts of apps that may be built to earn revenue:
- Newspapers, information portals, magazines, blogs, and other publications have mobile versions. (Forbes)
- Apps for music (Spotify)
- Users can adjust the general orientation of their smartphone or any other device using personalization software. (Zedge)
- Tools for improving performance. (CCleaner)
- Apps for eCommerce/Shopping (eBay)
- Apps for the Internet of Things (Vialatm)
- Apps for sports and fitness (My Fitness Pal)
- Apps for social media (Facebook)
Users spend the majority of their time on social apps, music apps, and eCommerce apps, among the aforementioned mobile applications.
What Does It Cost To Develop An App?
Fortunately, we have a fairly comprehensive response to this query. Because most designers and developers make the error of incorrectly pricing numerous parts involved in the development of an app, establishing the app's price becomes complicated and cluttered.
However, if you plan to make your app a paid app, you need to carefully consider your business strategy and app's feasibility, as not every user will be interested in paying for an app when there are thousands of free options on the Google Play Store or App Store.
As a result, think twice about charging for your app.
Furthermore, "How Much Does It Cost To Make An App?" is a fantastic blog written by one of our business analysts. that will walk you through the entire process of producing a mobile application, including the development and design phases, the technology stack, and everything else related to cost.
Additionally, if you're willing to assess the viability of your "Paid" mobile app, here's a list of a few key questions you should consider before starting work on your paid app:
- What will my mobile application's features be?
- Is it going to be used on a regular basis?
- What does my competitor's app cost? (There are a number of app development companies that can calculate this for you.)
