How Much Money Can An App Earn? By  |  Aug 9, 2018  |  App Development
How much money can an App earn

Let’s face it: the mobile app development is no more an intimidating factor, app development is accelerating rapidly, the army of developers is constantly increasing, and the businesses are prospering, flourishing and leading the competition beating all the records.

The whole game is incomplete without the huge investment and potential earning.

It’s true. The app industry has become a revenue-generating machine that’s spilling billions of dollars. From the Clash Of Clans game that has generated $2.029 billion dollars to Angry Birds that has generated 297 million Euros in revenue to the Pokemon Go generated $268 million in revenue are the epitome excellence. On the flip side, there are apps that have gotten floppy and brought no money at all.

Undeniably, the ultimate goal of the app idea that you want to engineer or have already engineered is not just for fun or creating value, while earning huge buck lies at the core. But, in this unprecedented rush of app development, How much the businesses can earn from the apps

There exist no parameter- the number of downloads, inactive users, active users, or loyal users using which help businesses to estimate whether the app idea is best of their buck or not. There are a lot of variables on which the revenue generated by app depends. Let’s discuss them:

Platform is chosen

The market penetration and the platform popularity are the two key metrics that highly influence the revenue which businesses can earn from the app. Mostly, the apps are built on the Android or iOS platforms, or both, but the user base of both the platforms behaves differently. The Apple users spend the most as opposed to Android users, while Android is dominating the global market share

When we look at the platforms from a revenue perspective, the Apple store excels that has enabled 20 million registered developers to make $100 billion in revenues. On the other hand, Google Play Store allowed the developers to get $60 billion in revenue, which is a wide difference.

Also, if you are uploading the app on the Apple store, then the payment will be credited in the developer account under 45 days after the date of purchase. In the case of Google Play Store, within the 30 days of the cycle, the payment is made alongside the ratio of 30:70 where the 30% of the earning will be kept by the play store and 70% will be credited to developer’s account.

Blackberry and Windows woes are deepening as their market penetration is getting decreased year by year, so it’s better to avoid building the app on these platforms as the probability of earning revenue is minimum.

Even if it’s the event of building an app for M-commerce app or health and fitness app, iOS apps thrive despite Android enjoys the virtue of having a huge user base.

Hire developers that conduct the research before hopping on any platform bandwagon to figure out the target market considering the consistent revenue stream in their mind. Decide what you do want- the major chunk of the audience bringing a small percentage of revenue or minor chunk of audience bringing the high percentage of revenue.

The option beyond mobile phones is chosen

When you have an app idea, then it’s not necessarily that you build and publish on mobile platforms only. With technology advancement, the smart devices like- smart TVs, smart fridge, Smart ACs, smart watches, and others have made their entry in the market, for which the IoT app developers are well prepared to cater the best solutions based on the needs.

With the increasing penetration of smart TVs in the homes, and wearables like- smartwatches, and home automation devices, the users readily spend a good sum in subscribing or buying the services. It’s a lucrative opportunity for the businesses.

Considering the instance of Netflix app that has extended its services to smart TVs, and grabbed a high market share with 39.8% revenue growth in the Q1 of 2018. In 2016, the app has cleared $8.83 billion in sales revenue. It has also snagged the top spot in the global high-earning game app in 2017.

In addition to smart devices, the video game consoles also have their own app stores where the apps have scored immense success with millions of dollars in revenue. You can reap the competitive advantage by optimizing the app for different devices. Test your app compatibility and the cord-cutting trend in respective niche before crafting companion app.

OTT video streaming apps – The future and cost to develop one

The type of in-app revenue stream chosen

The consistent revenue stream can be created when the app is tied with direct selling services such as in-app purchase, in-app advertising, sponsorship, subscription, or affiliate links.

The in-app advertising that’s as popular as the advertising on the websites has begun its transformation from desktop to mobile 10 years back. It helps is maximizing the revenue without hindering the functionality, if the right balance is maintained. The number of ad units, Cost Per Mile (CPM), Cost Per Install (CPI), and Cost Per Action (CPA) are the different models based on which the app developers can partner with the company and can earn handsome amount of money. The global ad spending on mobile in increased to nearly $160 billion in 2018 and has almost doubled in the last three years. The leading mobile advertising networks provide Android app publishers with the highest eCPM of $7.5 per 1000 impressions, while for iOS, they are providing $5 per 1000 impressions.

The concept of subscription is simple. At first, appeal the users with your services and then make them interested to subscribe to your services by paying annually or monthly, which grows the revenue at a stunning rate. Netflix- the video streaming service provider has made $11 billion revenue from its 128 million subscribers in the USA. The company has even bumped up the subscription cost of its two video streaming plans. No change is made to the basic plan, the mid-range plan that allows users to view HD video on two devices at a time is increased by 10%, and the top-tier plan where the users can view ultra HD videos on four screens at a time is increased by 17%. The jaw-dropping response has astounded the whole world when Netflix managed to make record-breaking profits of $290.1 million with the unexpected addition of 7.4 million subscribers in the last quarter of 2018 even after making changes to its subscription plans. The hefty spending on content to not get it stale has paid off to the company in a big way.

The sponsorship is an old aged and under-utilized model, but it’s a lucrative monetization for the apps. Here, the challenge lies in finding the right sponsor that targets the audience of your app’s niche. The app developers can either sign an agreement with the revenue-breaking deal or monthly sponsorship fee to generate another source of revenue. For instance, Home Depot has sponsored a Weather channel app where the animated background of the advertisement appears on the screen when the temperature is displayed. It’s a trick to promote and sell the weatherproofing appliances to the homeowners.

According to a survey, “Mobile application users spend 24% more on in-app purchases than on paid apps.”

It indicates the in-app purchase where the access to special content, additional features, power-ups, or restrictive levels is provided on the freemium apps has picked up the pace among the users. This model is highly leveraged by the game apps where the game currency can be purchased in the exchange of real money, and it has generated millions of dollars in revenue.

The mobile analyst Sensor Tower study has revealed that the title of Pokemon Go’s financial success goes to the highest user base of the USA that has helped the app in gaining roughly $424 million of in-app purchases.

Note: Top 5 tips to earn bigger profits from your mobile app


Every entrepreneur with an app idea hopes to build the next big hit, but it’s driven by the efforts that make their fortune. There is no bar to the revenue that your app can generate because history has witnessed the apps breaking the past records. Also, there is end number of ways that can help you generate dollars, but what exists at the core is, your app should thrive the audience once it’s installed and compel them to say- Yes, it’s the one I was searching for long.

The intriguing app that can gauge the user’s attention and engineer the unmatched experiences, when marketed rightly alongside interweaved monetization model, the billion dollars of revenue undoubtedly get credited to your account every month. Don’t fret! To get the better of the app market build a world-class application by selecting from the top rated app development companies that suit your requirements. Now, you have the plenty of options, choose the one that brings the most ROI.   |  Aug 9, 2018 is a platform which brings to you a listing of all the competent web &mobile app development companies across the world focusing on the combination of traditional IT research offerings and the latest methods that have come up to provide more competent results.


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