During the tenure of a marketing internship, a few students who were repeatedly asked by the owner of an application to promote their app among friends and get good reviews found themselves in a position to find out about the earnings of an app owner. An app is built collectively with the help of a significant team at the best android development company, with each member playing equal importance. And we are accustomed to using apps all day long.
These days, for each of our endeavours that require a mobile phone or a computer, an app is an essential requisite. Yet, most of us are not aware of the monetary benefits hidden behind these apps for their owners. How is Mark Zuckerberg a billionaire? Did a single app- Facebook lead him to be a billionaire? Do apps earn you such a good dividend? Is there a decent scope in developing an android app using the best android development company? We are here to answer all these questions that you have in mind.
In this blog, let us take you on a ride on the various income sources of apps. Read on to comprehend how much money you earn from an android app.
How much to expect from an app?
Believe it or not, Android applications are making millions of dollars each year in revenue. However, it is evident that several such applications on the Google app store are not much. Some of the apps lie around tatters and do not make a penny. So.wothers on the other hand, are making their owners play with billions of dollars. We surely have taken this deed into our hands. Still, practically looking at the scenario, it is not possible to provide exact figures of the financial benefits of developing an app.
We will still try to mention down some rough figures of the earnings of an android app as suggested by the best android development company. The apps maintaining a position in the top 200 list of apps earn their way about $82,500 daily. This revenue plummets to $3,500 when we look at the top 800 list of apps. Not to forget, these revenues do get influenced by the category they come under.
For example, a gaming app would earn greater than an entertainment app. A gaming app would reap some $22k on an average daily, while an entertainment app will get these figures down to only $3090 per day. Keeping that in mind, we will answer your questions regarding how much money do apps make per ad or how much money do apps make per download.
Although difficult to process, it is a fact that in 2018, a total of 52.2% of the entire web traffic was caused by mobiles in the USA.
This is the reason why everyone thinks of building an app even if they are running an offline business. Having a unique idea for any business in mind will help you get the attention of the audience. We say unusual because today, nearly 3.48 million apps are available on the google play store. Not all of them are of a clue to the users. To avoid being one of the useless ones, your idea must be unique and relatable to the target audience so they can make complete use of your app. But before going there, obviously, everyone knows how much they have to invest and how much they’ll get in return for their efforts and investment. We are here to discuss that.
Before we begin, you just understand that every niche gets you a different amount of revenue.
So how much can I earn from the Android app is answered in this blog.
As of quarter 1st of the year 2021, the global revenue of apps has been calculated to be $11.4 billion against $8.4 billion for the 1st quarter of the year 2020.
We have data of annual app revenue of the Google Play store till the last quarter of 2020. So with that being said, let us look at the revenue generated year-wise through the game apps as given by Statista.
Taking a glance at the above data, you must have understood the scope of developing an application with the best android development company. The annual revenue has seen a continuous increase every year. This isn’t really shocking as this is a byproduct of the boost in mobile usage over the years. In 2018, the cause of 52.2% of global traffic was mobile phones.
As is evident from the data itself, the app revenue annually is not set and varies from niche to niche. Hence, one needs to pay heed to the niche they are expecting a range of income from. The following data represents the discrete classification of revenue from different categories of apps.
Apart from your app’s category and target audience, you must decide the business model that you are seeking to implement in your app.
How do apps make money?
There are different ways through which you can make money with an app keeping the best android development company in mind. There are multiple ways of earning, and we are going to discuss the major ones.
- Subscription: one of the most common ways that you might know is through subscription. When an app asks you to get a subscription for its services, it directs you to get a subscription to the app. This way, the developer receives the money you pay for the subscription. If you are a developer, you can earn money by either putting up a paid app or insisting on getting a subscription for your app, either monthly or yearly. Apps like Netflix make their significant earnings through this method.
However, most apps refrain from using this method because they reach their target audience since Netflix has a huge audience and a massive fan following. Everyone around talks about ‘Netflix and chill’. All this is the impact of a great marketing strategy along with excellent content development for the audience. If you think you have a fantastic idea like that one, give it a shot! Also, if you think your app has some features that require a little more than just free service, you should go for a subscription method of earning.
Clearly, this method is the best way to earn. Statistics infer that this method allows the owner to reap 50% more than any other monetization method of apps.
Remember, getting prolonged subscriptions is not easy in today’s world of competition. However, an app like Netflix is still running on payment subscriptions because of the creativity, upgraded information, and tremendously engaging content that it provides to its customers. Hene, it is advised to choose wisely the method of monetization of your app.
- In-app purchases: the next method to be informed here in-app purchases of an app. An app that includes in-App purchases is a great option to finance its developers. If you’ve played PUBG, the most sought-after game of the past few years, you must have noticed the various options that required purchases with real money. This is how gaming apps have been earning for ages. Many gaming apps use this strategy of inculcating in app purchases so that the customers are enticed to buy their favourite characters or traits for their characters while in the high of the game.
Advertisement: Advertisement is a strong win-win situation for both the developers and the customers. A little creativity and consumer psychology out into developing an excellent advertisement for any app can make your app thrive for years. Partnership with top brands who wish to advertise their products through the medium of your apps will turn out as the best thing you do for your app. Best android development company suggests that incorporating ads from different sources is an economical way to earn through an app. Having to watch advertisements on Youtube has never been a compulsion until recently. Now, every video plays with a certain amount of ads. This is a way of earning which is typically used by a lot of enthusiasts.
While partnering with any brand, you must make sure that the products are relevant to your application. For example, showing bath products ads on a technical app would not work as much as displaying earphones and stereo speakers ads would do on a music app. Now the question arises, how much money do apps make per ad? The answer depends upon the genre of the app as well as the ad unit. To give you an idea, the average income per impression earned in the US is $0.02. Here is an illustration of the impact of ad units on the revenue from apps.
- Merchandise sale: the sale of goods in your applications is another unique technique. Most e-commerce companies create free versions to sell physical products like toys, clothing, shoes, etc. Such tangible things may be sold directly or via email marketing through the application. To cite an example, Amazon has developed a service called Amazon Merch, which allows publishers to create their work, upload it to their platform, and advertise their items, to motivate app publishers to embrace this technique. For owners and application customers, it is a win-win situation. Not just this, Amazon has also come forward in handling the delivery of the merchandise to facilitate things.
- Referrals: the type of marketing is the best used in today’s time. Here, two parties help each other grow through referrals. The publishers of an app are subjected to sell the products of another party called the affiliate marketer by installing their products on their site and asking for referrals or income in return based on per click or per view mechanism. An example would be the pop-up ads that show up on your screen while using a site or application. The app owner gets benefited with each click or view of that pop-up.
How much money do apps make per download?
There are two categories of apps based on monetary aspects- paid and free. It is obvious to speak that paid apps do make some money per download. But is it possible that free apps also earn through downloads? If yes, how much money do free apps make per download? We will answer each of these questions distinctively here.
The paid apps get an amount per download as is designated as their cost. On the other hand, free apps earn through other monetization methods. So, as far as downloads are concerned, free apps do have a scope of earning through downloads. But, there is a limit of downloads that they have to achieve before it gets them paid. So, how much money a thousand download app can make depends on various aspects and can’t be discussed discreetly.
What’s the next big thing for application development?
While choosing a career or a work profession, one must inevitably consider the monetary benefits associated with it. Similarly, someone making a career in application development with the best android development company has to look out for the financial aid they will receive as a byproduct of working in their favourite field. For this reason, having an idea of how much an application will pay them is crucial. As much as it is required, it is very complicated to comprehend the exact amounts of dividend an app will pay you. It varies, person to person, strategy to strategy, varies among business models used, designs implemented, creativity put in, monetization methods used, companies collaborated with, and lots more.
Still, we have tried to cover most aspects of monetization through an app. Be it subscription or advertisement, be it in-app purchases or referrals, be very wise to choose the right kind of financing method for your income through your app. Otherwise, your app might become one of those apps if you are not going out to the general public but lying around in a corner in the Google Play Store. As blunt as it may sound, keep these things in mind and correlate each aspect of app development, implementation, and monetization to get yourself some good income. Good luck!
So now, all you really need is an expert Android App Development team that will blow up your app idea. Now sit back and relax, and your app will earn for you. Just reach out, and let’s do it together!