Any app that lacks an effective app revenue stream, model and system is pointless. Why? Because it would not create any fascination in the user base so they can make some In-App purchases (or even make attempts to make one).
Whether professionals deny it or accept it, app revenue models are an integral part of the overall app development process. It helps ensure the app earns high return upon both investment, development, launch and usage.
Do entrepreneurs develop apps as just a hobby?
Nope. No entrepreneur would develop an app just to pass time. They create apps not just to solve problems faced by users but also to achieve financial targets. Needless to say, a mobile app is not just a mobile software laden with features, it is an opportunity to help the entrepreneurs enter a whole new world of endless possibilities and chances.
What does research suggest?
Research conducted by accredited firms and bodies indicate that 26% of consumers start their search on branded apps. Though the conventional method of getting the product to the market is by uploading it across various digital channels and this method is still in practice, it’s not the only profitable option firms have these days.
Considering statistics that revenue generated by mobile apps is projected to rise 32% each year, now may be a really nice time for companies to choose and integrate the best app revenue model and stream for their mobile app(s).
The best app revenue models companies should consider for their mobile apps
In this post, senior app developers Toronto working at a well-known app development firm based in downtown have decided to help entrepreneurs and developers overcome their struggles in looking for and implementation of the best revenue models. They have decided to share the best app revenue models that can help firms make money with their apps, and that too a handsome amount.
Now let us all take a closer look:
The In-App ad revenue model
Research indicates that the in-app advertising market’s size was estimated to be around USD$ 78 billion. This stunning figure was predicted to rise to almost USD$ 91 billion last year. Those who are wondering how much it will grow in the future, should know that the market size will grow to approximately a whopping amount of USD$ 473 billion by 2027.
The reason for this drastic increase in the market value of In-App revenue model is that approximately 93% (i.e. 4.32 billion) out of almost 4.66 billion internet users across the world access the internet via smartphones. Then out of this large user base, a monumental amount of users spend a considerable chunk of their time on different apps.
Hence the integration of this revenue model in a mobile app means that firms will earn a good amount of revenue by serving advertisements to users through their mobile apps.
But those who desire earning a high amount of revenue using the In-App ad revenue model, their app should have a significantly higher number of active users engaging with their app on a regular basis. Else, it may not work nicely.
Another thing worth noting is that integrating this model in an app isn’t complex. Developers need to integrate either a code or a Software Development Kit (SDK) properly in the app’s code. Moreover, ad monetization companies are known to provide detailed documents and support in case there is any difficulty.
The In-App purchase revenue model
Some of the best examples of this app model are of the games Clash of Clans and Candy Crush Saga. Both these gaming apps allow users to purchase additional components of the app for a specific amount of money. Among those components are features, functionalities, services, content and the like.
Through the in-app purchase revenue model, firms can achieve a broad range of possibilities for their app through integration of numerous sources of revenue within the app.
Generally, this model consists of two things namely Consumables and non-consumables. The former consists of items that need to be bought so the feature users unlocked can be active for a prolonged period of time. Among them are:
- In-game coins.
- Digital Currency.
- Additional lives in the gaming apps.
Whereas non-consumables are those items that do not get depleted and are available for a one-time purchase. This model is a good way for apps to make money online.