The mobile application market is booming and the chances for this to change are really small in the near future. More than 1,1 billion devices with Android are projected to be sold this year and this number is expected to grow even more in 2015. As more and more people are going mobile, they are going to need quality mobile apps. And although there are millions of them on Google Play, for instance, the expanding market is thirsty for more. Some of the apps really made it big. Everyone knows about Angry Birds, the mobile game that made its founder millionaires (read its story here). And what about Summly? Last year Yahoo bought the application for $30 million from its inventor – Nick D’Aloisio, who was only 17 years old and became one of the youngest multi-millionaires in the world. No matter that there are zounds of apps over there, the market will be always hungry for quality ones. Right now starting a mobile apps business seems to be not a bad idea. And if you haven’t, you should seriously think about getting a piece of the tasty mobile pizza.
In the following infographic, you can see some useful and interesting statistics about starting a business in the field of mobile app development. For example, more than 32% of all mobile app projects have made more than $5 000 in profits for their developers, this is a pretty nice number. 12% brought more than $50 000 in revenue and 37% of developers got more than 50 000 downloads of their best app. Although these numbers sound good, there are some bad ones, too. More than 80% of all projects can’t cover their costs, for example. These and some more cool statistics you can see below:
How Are Mobile Apps Monetized?
Monetizing your mobile app can be one of the most lucrative and beneficial ways to monetize your digital content. However, the key to success lies in understanding the various monetization models and utilizing the right ones for your mobile app. Whether you choose to develop a free app with in–app purchases or an app that offers a subscription plan or a one–time fee, each of these monetization models has its own set of benefits and drawbacks. Today, some of the best ways to monetize a mobile app are still:
1. In-App Purchases are the most common monetization model for mobile apps. It involves allowing users to buy virtual goods or services within the app, and the revenue generated depends on the sales of these items. The key benefit of in–app purchases is that they generate a steady stream of income and they also have a high conversion rate. However, it‘s also important to keep in mind that the cost of creating and launching in–app products can quickly add up and it can take a long time before your app starts making a profit.
2. Advertising Advertising – is another way to monetize your mobile app. It involves displaying ads within the app and the revenue is generated from the ad impressions and clicks. The benefit of using this monetization model is that it can be a quick and easy way to generate revenue from your app. However, it can be challenging to find the right advertisers for your app and you may need to adjust the ads in order to keep users‘ interest and engagement.
3. Subscription Model – The subscription model is one of the most popular monetization models for mobile apps. It allows you to earn steady revenue over time by offering users a subscription plan. The subscription model is beneficial in that it helps to create a predictable revenue stream and it also encourages user loyalty as they are more likely to stick to a subscription plan they have already invested in. It also requires less effort to keep up with customer engagement as compared to the advertising model.
4. Freemium Model – The freemium model is similar to the subscription model, but instead of charging users a fee for the app, you offer a basic version for free and charge for additional features or content. With this model, users can get access to the basic features of the app for free and then pay for the premium features if they decide to upgrade. The key benefit of this model is that it helps to attract more users and make the app more appealing. It also allows users to try out the app before making an investment and there‘s no risk involved.
5. Affiliate Marketing – Lastly, affiliate marketing can be a great way to monetize your mobile app. Affiliate marketing involves allowing other businesses or individuals to promote your app, and in return, you offer them a commission for every user they bring. This model is beneficial in that it helps to quickly elevate the visibility of your app and increase its user base. However, it can also be difficult to find the right affiliates to promote your app and you need to ensure that the affiliate partners you choose are reputable and reliable.
By now, you should have a better understanding of how to monetize a mobile app. There are many different models available and it’s important to consider the features and services you’re offering as well as the target audience in order to determine the right monetization strategy for your app.
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