As consumers across the world become increasingly mobile, mobile apps, are set to become the greatest profit-making machines for businesses worldwide. Globally, mobile apps are expected to generate total revenues of around $189 billion in 2020, more than double the amount made in 2016, which was $88 billion. In fact, to put it quite simply, there’s a lot of money to be made via mobile app development.
Studies on mobile app usage trends also show that mobile app downloads will surge in the future, prompting app stores to respond to consumer demand for higher quality and a wider range of apps for customers to use. In fact, in the Americas alone, consumers are expected to download more than 31 billion mobile apps in 2022, according to Statista. So, it’s no wonder then that both new and established companies alike are in a race to develop the most engaging and one-of-a-kind mobile app that can help drive increased profitability for their business. For those who are still weighing the merits of building a mobile app, we outline the key attributes of mobile app development that will help boost your company’s bottom line
Lower cost of production
Until quite recently, mobile app development cost companies as much as around $200,000 to build an application. However, with more and more developers moving into the industry, the cost of app development has reduced drastically due to the greater availability of mobile app developers. This, in turn, means that companies stand to make higher returns on their initial investment. In addition, evolving technologies such as cross-platform app development have made it possible for companies to avail further benefits of lower costs and lesser time taken to develop an ap
Exposure to large and growing user base
According to Statista, over 3.5 billion people around the world were mobile internet users by August 2017, with mobile data traffic estimated to grow sevenfold during 2016-2021. Studies also show that 75% of the United States population use their mobile devices to browse the internet. These trends highlight the tremendous scope for companies to tap a large and growing base of potential customers through the mobile app.
Proven money-making app categories
Some apps, such as gaming apps, tend to be veritable high-earning categories because of their popularity and appeal. For example, Pokemon Go generated $890 million in revenue in 2017, and in 2016, earned nearly $1 billion, or $930 million to be exact. Similarly, other high-grossing apps in 2018 include Epic Games’ Fortnite, generating nearly $1.9 million in revenue per day, followed by Candy Crush Saga by King, which rakes in $1.3 million in daily revenue. Indeed, gaming apps have stood out as one of the best app categories for its proven profit-making power in the past six years.
Established monetization models
A good number of mobile apps are free for people to download. And yet, the real profits companies can make through apps lie in the use of well-established mobile app monetization models, such as in-app purchases, advertising, and paid-for model. Studies show that nearly 80% of gaming apps use in-app purchases, while about 50% of non-gaming apps used in-app advertising. Today, in-app purchases account for more than half of all revenues generated through mobile apps.
The appeal of unique and valuable apps
The rise in mobile penetration has driven an equivalent surge in the production of mobile apps. By end-March 2018, Google Play alone had around 3.6 million apps for Android users to choose from, which was 100,000 apps more than the number of apps available on the platform in December 2017. Similarly, the Apple store went from having just 800 apps in July 2008 to around 2.2 million apps by January 2017. And yet, not all apps can pique user interest and drive conversion rates. Mobile apps that regularly update their functionalities and features are more likely to appeal to users. Similarly, apps that meet consumer demand for greater value addition, higher quality, and unique features are bound to profit and gain traction among customers.
Mobile app development is a long-term profitable ventureIt is still a profitable avenue for companies and is expected to continue to be one for a long time into the future. As such, having a mobile strategy is now an important aspect of business operation and marketing plans aimed at reaching new and existing customers as well as to position their companies for long-term success.
Laviola Rokos is freelance writer at Robusttechhouse – Mobile App and FinTech systems specialists, passionate about developing robust solutions. We build innovative, next-generation systems across ECommerce, Mobile-Commerce and Financial sectors. We aim to be the leading Tech House in Asia.
Mitul Patel, Founded ProtonBits, one of the Top Software Development Company in 2011 offer mobile app development services across the globe. His visionary leadership and flamboyant management style have yield fruitful results for the company.