In the current era of mobile devices and smartphones, ignoring an application-based business model can be a fatal mistake to be made. Recent research from Sensor Tower shows app development has become a more lucrative business than ever with almost $22 billion spent in the third quarter alone. The growth rate has increased by up to 23 percent over last year’s Q3 2019 spend of $17.9 billion.
Applications are used today for a myriad of aspects of life, right from traveling, food to lifestyle management. There are two dedicated platforms for application marketplace known as Google and Apple. It is important to identify the potential of these platforms for your application as these platforms provide play stores to download applications for the users and the popularity of the platform means a lot, in this scenario.
Sensor Tower made observations in their research that, Apple’s app store generated a whopping $14.2 billion of total app revenue for developers worldwide with an increase of 22.3% from last year. While Google's Play store was able to generate $7.7 billion in revenue generated in Q3 2019. Though if you consider the number of app downloads Google still leads the race.
What is a well-built web-application?
A well-built app in today's e-commerce ecosystem should be fast, lean and highly responsive. Design specifications should be optimized for enhanced User Experience(UX). This can be achieved by designing the User Interface(UI) in such a way that the application can deliver the best possible UX. It should cover key expectations & needs based on how people use a specific service.
Application should be built on an infrastructure that can provide stable, reliable workflow, during the user-system interaction through the user interface. It should be able to provide a sufficient amount of data protection.
For businesses, it is important to understand the schematics and usage part of the application to encourage user retention. One of the most important functions for higher revenue generation in an application is smooth and hassle-free online payments.
From a costing point of view, it is important to structure your application with lower costs for updates and newer versions that can be seamlessly integrated into the current infrastructure. The use of agile methods can render low costs and low code efforts for application development.
What are the ways to generate revenue from apps?
Revenue generation from applications can prove vital for your business, especially, if it is service-centric. There are various forms of earning ways that can be streamlined and integrated into an application to generate revenues Following are the various methods to generate revenue from an application:
It is one of the most popular forms of revenue generation from an application. Mobile advertising has taken giant leaps in a very short period. Mobile ads are very popular and as Techjury's data suggest, in 2018 the total amount of money spent on mobile ads was $138.1 billion with 63% of total digital ads revenue worldwide. You can use ads to monetize the app is by displaying commercials inside your mobile apps and get paid from the ad networks.
These paid in-app ads are integrated into your applications based on payment and revenue packages. Packages that are bifurcated based on click on ads, downloads per click or just appear on a particular web page or display.
The full-screen pop-up ads used for advertising a particular brand at a specific time. These adds can be closed by opening the promoted page for targeted advertisements or by a close button in the ad corner. Such ads can be placed in between contents, before or after content, videos or even after other commercials.
Banners that appear at the top or bottom of screens in several sizes and styles. These ads are designed to be small and less obtrusive to users for smooth interaction with the app. mobile app development company can target specific customers through these banners according to their behavior patterns analyzed form their data.
Two types of video ads are popular- In-app and Native video ads. Digital video advertising revenue increased to a value of $7 billion in the first half of the year 2018, with a growth of 35% from a year ago and 60% of this revenue contributed by mobile video ads. In-app videos are considered as the reward videos, for which certain reward or tools for a game is offered in exchange of opening of the ad. While native ads are designed to be naturally integrated into the application pages and do not offer any reward to the users.
In-app Purchases and Paid Apps:
Paid apps can be seen mainly in Apple platforms, while Google is famous for free apps. But, with these free applications to businesses can generate good revenue through in-app purchases. Paid apps generate instant revenue on downloads of the applications, while in-app purchases generate revenue by offering products, services or props for games for revenue.
These applications are quite famous for revenue generations. Take it from, Netflix or Spotify, subscription to premium services like content streaming, music streaming, e-books reading, research access, etc have all been the revenue generation fields of subscription apps.
There are several ways to generate revenues from applications which has been developed on a customer-centric infrastructure and designed to provide the enhanced and enriched UX.
To keep at the pace of application development worldwide, several tools and techniques for rapid development and testing of applications should be achieved. Businesses are constantly looking upon the latest innovations to automate the application revenues through Artificial Intelligence and machine learning technologies,