How Android Apps Earn?
There’s a lot of money in Billions of dollars in Android apps earn. But most of this money android apps earn, and many apps make no money at all. The top-grossing apps in the world may not be the ones you suspect. This article will explain the ins and outs of how Android apps earn and give you some ideas for how your app can become an earner.
The mobile market has grown substantially over the years and industry experts predict continued growth. Mobile internet usage surpassed desktop way back in 2014, and 80% of internet users now own smartphones. With such impressive numbers, it’s no wonder that Fortune 500 companies and entrepreneurs alike are trying to get a piece of this modern-day gold rush.
If you’re new to the market, looking to enter it, or just have a really cool idea for an app, one of your first questions is likely to be profit-related. Building apps is a difficult task and you will want to be rewarded for all of your hard work. The following overview of mobile app earning potential should give you a clearer picture of how much you can make off your app.
WHICH PLATFORMS MAKE THE MOST MONEY FOR APP DEVELOPERS?
First and foremost, you need to decide what platform (or platforms) you want to design your app for. This can greatly affect your earning potential due to differences in market penetration and platform popularity. For the purposes of this metric, we’ll be rating platforms based on the percentage of app developers earning $5,000 or more per month on their apps.
The leader in this category is Apple’s iOS platform, with over 25% of its developers earning over $5,000 per month. Android is also a well-regarded platform because of its continued market penetration. Sixteen percent of Android app developers earn over $5,000 per month in revenue. However, it is worth noting that Android is much more “top heavy” in terms of earnings, with much of its total revenue being earned by its top developers. The iOS platform has a wider spread of overall earnings, increasing your odds to make money via their app market as a newcomer.
Platforms that aren’t as favorable to app prospectors include Blackberry OS and Windows mobile platform. Blackberry doesn’t have the market penetration of Apple or Android, and its parent company RIM has seen its earnings and spotlight in the market diminish year by year. Windows has strong corporate backing from Microsoft but lacks overall popularity among cellular end users. While more niche platforms can be profit earners, they should only be considered once your app has proven profitable on a more widely used platform. Once an app is a proven winner, porting it to other platforms becomes more viable.
WHAT KIND OF REVENUE DO ANDROID APPS EARN or GENERATE?
There’s no denying it. Apps are big business. In 2016, global app revenue hit an estimated $52 billion. This was a $10 billion increase from 2015. Business Insider predicts an 18% increase in global app revenue between 2017 and 2020. By some calculations, the app economy will be worth $6.3 billion by 2022.
Gaming apps dominate the list of top-grossing Android apps earn. Bandai Namco Entertainment’s Dragon Ball Z Dokkan Battle makes an estimated $2 million per day in revenue. King Digital Entertainment’s Candy Crush earns $1.6 million daily through in-app purchases. Supercell, the company behind Clash of Clans and Clash Royale, makes over $2.3 billion annually. Most game apps are free to download, but the real money is made through in-app purchases. Kim Kardashian’s virtual shopping app has brought in a reported $100 million since 2014 from 42 million downloads. So if you’re not a game designer, don’t worry — there are other categories with impressive earnings.
HOW MUCH DO SUBSCRIPTION BASED ANDROID APPS EARN?
With over 1 million paying members, Match Group’s Tinder is a great example of an app that is a tidy money earner due to in-app purchases. The Tinder dating app is free to download but makes money by charging users for bonus features like unlimited swipes, which give users endless opportunities to match. Tinder’s “passports” add-on allows users to match with users in other locations, while “boosts” allow users to bump their profile to the top of the pile of users in their area. In 2016, Match Group reported generating over $285.3 million in revenue. Tinder charges $9.99 monthly for a Tinder Plus subscription and $14.99 for a Tinder Gold subscription. This approach has made Tinder one of the highest-grossing apps worldwide.
Pandora, Spotify, and Tidal are also high up on the list of top-grossing apps. Subscriptions generate the majority of these apps’ revenue. Users pay to listen to music uninterrupted by commercials, share playlists with other users, and gain access to exclusive material. Video-streaming apps like Hulu and Netflix operate on subscription-based method as well.