Consumers and followers have fallen in love with apps with some suggestion that the majority of time people spend on their mobiles is spent on apps. In-app purchases, as well as paid-for apps, present an enticing prospect for brands and companies. The number of people who own and regularly use a mobile or other handheld smart device such as a tablet is growing.
Increasingly, users are using these devices to access websites, including buying online as well as communicating and other activities. Apps are the software tools that companies are increasingly investing in so that their fans and consumers can remain in touch with what they have to offer. Initially, these apps were seen as productivity tools.
Email programs were often compacted into these small nuggets of downloadable programs that allow users to quickly access their accounts. They could not only see new emails as they came in, but they could also reply to messages.
Essentially, the app provided a platform that looked the same, acted the same and felt the same. Information was seamlessly synced across the devices the user chose to connect. Their popularity seemed to know no bounds and as such, users demanded more and more options when it came to the types of apps that they wanted. Everything from gaming to shopping, including their favourite brands led to a steep rise in the apps on offer to users. Depending on the sophistication of the app, users can also opt for a personalised response from it.
Large brands took the plunge, opting to invest in an app that allowed them to connect and promote their products and services to consumers in a way that they wanted.
However, despite there being money to be made in this way, giving too many options to purchase can annoy and irritate the user, one reason why some users may choose to uninstall an app. There is also growing evidence that millennials especially are willing to pay for apps. Apps are used by brands and companies, as well as other organisations and groups, to reach and connect with their audience.
Whilst they can be a good source of income, there are other reasons why investing in an app is a great idea for your business. In , billion apps were downloaded globally , a trend that is continuing to rise. By , the prediction is that this will rise to well over billion downloads.
The potential, therefore, to join in with this movement is clear to most businesses. And it could be that your customers will also expect this of you. In , Americans were spending 3 or more hours on their mobile, another trend that is expected to rise with the number of users using PCs declining slightly.
And that means apps on people phones will be their go-to tool to connect with their favourite brands. Every brand knows the importance of being recognised by customers, making huge efforts to boost familiarity.
Apps contribute to customers, fans and followers recognising your brand but also associating it with the attributes you want them to. Understanding why people use apps is important when investing in the design and build of your app. Close behind are business-based apps.
The fact that many of the apps in the top are business-based is an indication that they are a popular choice for many consumers, a fact that informs the next benefit of investing in an app for your business.
Shopping online is a popular means of buying everything and anything from clothes to food. And whilst many of us still use the web, there is increasing evidence that many consumers turn to the app of a specific brand to buy. Just as encouraging is that consumers also use apps as a communication tool. Dating apps hold up the average. As you learned in our previous post , Sports apps get a significantly higher portion of their downloads and revenue on the weekends.
But as you can see, sports apps do fairly well on a revenue per download basis. With people traveling so often during the holidays, one might expect the return per download to be higher in November through January. Like in other categories, however, this is not the case. Again, total revenue and downloads are probably higher, but just not more profitable, per download.
Free apps tend to do better and this is a pretty crowded category. Finally, we come to Weather apps. There are quite a few apps that use proprietary weather data and can therefore charge for the app. So unless you have access to this type of data, making a lot per download can be a little tough.
So that is what we estimate app publishers make per download, worldwide. There may also be other ways to monetize an app, outside the App Store, but this is the revenue that we can quantifiably estimate. It just means that you have to really do your homework and find out what successful apps are doing. This is especially true in categories that typically have a low yield per download. This data comes from our Store Intelligence product.
If you would like to get the estimated downloads and revenue for your competition, schedule an Enterprise demo today. Follow us on Twitter for even more insights and relevant news on the app economy. If you're a member of the press and are interested in mobile app insights for your reporting, please contact us to learn how we can help. Here is what we discovered… All iOS Apps. Hugh Kimura Head of Content Follow us on Twitter for even more insights and relevant news on the app economy.
When it comes to how much money apps can make, advertising plays a pretty big role. Image Source: Martechtoday. But when done smartly, ads can generate big revenue for an app through clicks. Apps will allow users to download the app for free, but offer in-app products—which could be virtual or physical.
This can come in the form of app bonuses, extra points, block ads, reveal new app content, and so on. These in-app transactions are conducted via the app store and the app developer or owner will get a commision from each one. Referral marketing is similar to an advertising strategy where content about an affiliate business is placed somewhere visible in the app. Depending on installs and clicks, users receive rewards. This model can be used to advertise other applications, in-app ads, or ad for services and products.
Affiliate network companies exist for the purpose of finding the right affiliates for a given mobile app. There are also tools and programs that can integrate this strategy. Image source: Fabrikbrands.
This form of app monetization involves teaming up with brands who will contribute various rewards to users who complete activities or actions within the app.
The app owner will earn a piece of the revenue made through this app sponsorship. An example of how this looks is the following: A weight-loss app may partner with a nutrition bar company who might offer a coupon or discount for their product to the app users who have achieved a specific goal, such as meeting their monthly target weight.
Once the user buys a nutrition bar or other product from the sponsored company, the app owner will get a share of the money. There are a variety of ways to make money from apps, but in-app purchases and and in-app ads are the revenue models that are the highest earning.
These monetizing strategies are just the tip of the iceberg. App developers , creators, and owners are getting more and more creative when it comes to making money.
So how much money can you make from an app, exactly? The top-grossing apps are game applications. Put a plan in place with our Simple Starter package. This three-step approach is a cost-effective solution that will turn your app ideas into an actionable plan you can make big money from.
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