Hello guys, today I am back again with my new blog after so long and this time I’ll be telling you guys about 3 app revenue models which will increase your application revenue. So, as you all know that developers create apps just because they are free and those apps also generate some big amount of revenue.
Before starting any business entrepreneurs think about the possible income by many platforms.
As of now the mobile market is one of the biggest markets in terms of income. According to Statista global app mobile revenue is about to cross 365 billion US Dollars in 2018.
If we take the stats into consideration in 2019 apps are about to generate 461.75 US Billion Dollars and if we talk about the same thing by 2023, so it’s going to increase 2.5 times up to 935.2 US Billion Dollars.
So let’s start and talk about the 3 app revenue models which will be helpful for you in 2020.
What is App Revenue Model?
Before we talk about the model let me tell you about the app revenue model, so a revenue model is nothing but a framework to generate possible revenues. It also tells you that what value will be offered by the product, how much it will worth, and who will pay for this value.
Now in simple words if we say about app revenue models so it’s nothing but the ways and methods through which your application can generate revenues.
App revenue model is a document that has to be created before the development of any application and if you looking for investment this app revenue model is something that can help you a lot in your goal.
Now let’s start with App Revenue Models.
If we say about in-app advertising so it was valued at 66.78 US billion dollars in 2018 and it is expected to reach by 472.64 US Billion Dollar in 2027.
As per the records there are 3.9 billion mobile phone users globally, out of them, 51% of people access the internet using smartphones. 89% of the total time spent on their smartphones, people use shopping apps and games.
Coming to the point of revenue so to achieve it from in-app advertising it is mandatory to first focus on those audiences which are regularly engaging in your application. It is very important to work on the user base before cooperating with any advertising network.
The three most common type of in app advertising are:-
In App Purchases
Now this is something that works a lot for every application owner and it is a common source of generating revenue for every developer.
In this you’ve two options first one is consumable source like virtual money which can only be used a single time, once delete they cannot be used.
Non-consumable are premium features which never expires and can be used multiple time. For example filter in a photo application.
Freemium model does also play an important role in generating revenues like once they’ll allow you to enjoy all the features of the game at no cost but right after that you’ll need to pay which is said as a premium feature.
In this way using this model developers are completely generating a lot of revenue because people nowadays are ready to pay anything to enjoy the benefits of a game or an application.
Selling data of users won’t let you feel good but it’s a fact of generating revenue. Now the truth is that you are not sharing any data all the information is getting impersonated.
For suppose if your application is collecting data that can be useful to any educational institution, researchers, or other third parties you can consider data monetization as a source of generating revenue.
Final Thoughts on App Revenue Models
Overall, not only above mentioned ones are the way to generate revenue using an application there are many more like donations, SMS and email marketing, sponsorship, paid apps, affiliate marketing, etc.
So it is very important to focus on every model before you develop any application as these models will only be responsible for your application to generate a huge sum of money. Don’t just think now after reading it all develop your own app and enjoy the benefits of it.