Free and Paid Apps Download Statistics

What mechanism can be made to make money

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How much money does a free app make from you can earn real money Introduction As free apps market have always outnumbered the paid ones in terms of profits and download numbersmost of the people often ask a common question that — how much money do apps make.

Ever thought how to make money from apps? Even though the percentage of paid app revenues has decreased to And, you need to think more about app monetization strategy. Validate your app idea. Get free consultation from app development experts. And, the revenues generated from apps that charge for download paid apps are expected to go down in upcoming years. If you would like to learn more about these top photos videos apps developed by us, then visit our portfolio section.

App Monetization Options According to Statista, these were the most popular app monetization methods used by top app publishers. Another recent statistics researched by our app consultants clearly shows a win-win scope for the free apps. According to Statista, the distribution of free or paid apps in the Apple store and Google Play store as of December is mentioned as below as per the users.

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After looking at these statistics of the apps stores, if you are wondering about the major difference between the free and paid apps. Herein, we have narrowed down a gist for you. To avail, great reviews, these apps, are a great way to optimize your app on the app store. They are less expensive as they are not complex than the paid ones.

Multiple monetization possibilities in the future They help in building brand image and name in the online world.

How to choose a revenue model for your business? Reading time: 9 minutes A business starts with an idea of how to generate value for a customer. The total amount of money earned, in other words revenue, is the coal that keeps our train running.

The paid app has fewer downloads, you will automatically lose potential clients who are not willing to pay. Higher user expectation- you will have to make sure your app works flawlessly and offers a full set of features. The development and design of paid apps is quite high Limited monetization options- monthly and what mechanism can be made to make money fees.

Revenue model types and examples | AltexSoft

How do people make money from free apps in these ways? And it is also done via a third-party ad network. According to the latest report and study by Statista, here are the details on mobile advertising spending in the year and expected in Year billion U. An app owner just needs to display commercials inside their mobile application or opt for affiliate marketing and get paid from the third-party ad networks.

You can get paid every time an ad is displayed per impressionper click on the ad, and when a user installs the advertised app. Being a free version app, you can work with binary options without investment run ad campaigns to generate ad revenue for a specific period of time.

There are mainly 4 types of display ads that are displayed by the app providers for monetization. But, as an app owner, you need to monitor whether the targeted users are finding these ads entertaining or are they ad blocking them. Interstitial ads: This type of app advertisement is full-screen pop-ups that are displayed at specific time frames.

Users can close this ad by a close button at the upper left or right corner. For example, an ad can be displayed when a user finishes editing a photo and saves it in the gallery. This method is used by Gaana, which is a great example of app monetization. This app by integrating such ad tactic without any advertising fees has managed to enhance its app experience.


Banner ads: These display ads are displayed in different sizes and at the top or bottom parts of the app screen. They are often small and less obstructive which helps users to freely use the app. In-app video ads: These ads are displayed automatically and generally used as a reward video in exchange of some in-app rewards. For example, by watching the ad video, the app users can get the app currency which can be useful for either unlocking levels in the game or getting additional features.

This is the popular ad revenue model among users.

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Native ads: Native ads are integrated to appear as a natural element in the app. Most of the time, it is manifested to promote a product or a mobile app. In this case affiliate marketing will help in user engagement for your app for free.

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This method is getting more and more popular these days because the users are less irritated and intrusive with such ads. However, one point that you need to know about native ads is that their revenue can be pretty low compared to other methods.

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And despite the mobile app developers think of native ads as the best strategy, it is the most hated by users. Rewarded Videos: This is the most effective advertising model when we talk about in-app ad integration. Online users watch them in exchange for points, lives, or virtual goods.

Through such an ad model, it is easy to make money, as an advertiser you are able to communicate brand messages effectively. The biggest advantage of using this ad campaign is high retention rates, as users receive a reward for watching these ads. It works best for the gaming apps market, the gamer like free things, the effective cost per millie with this type of advertising is higher than for any other ad type.

App publishers can choose to offer free content in their apps for a limited amount of time and then charge users for a subscription fee that will allow them to access full content without any restrictions.

The popular and common technique used by the majority of free app publishers is to offer a free trial period and then charge the subscription fee to those who wish to continue to access the app content. This type of strategy is often used for cloud services, audio and video streaming, and online news services.

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To ease the integration of this revenue model, Apple is paying extra attention and making significant changes in how app subscription models work.

This new format was made to encourage the app publishers to sell their apps for a recurring fee instead of a one-time cost.

More engaged and serious audience to use the functionality of the app.

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It results in a more reliable income. Apple store rewards the app to keep the customers for a longer period of time. Want to Increase Your App Revenue? Get your free consultation now. Selling Merchandise Another innovative approach is to sell merchandise in your free mobile apps. Many e-commerce businesses build free versions to sell physical goods such as toys, shirts, shoes, etc.

Revenue model basics

To encourage app publishers to use this strategy, Amazon has started a service called Merch by Amazon that allows publishers to create their artwork, upload it to their platform and promote their products. It is a win-win strategy for the owners and app users. To make things easier, Amazon even takes care of the payments and delivery of items.

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Now, have a look at these pros and cons that will help you in deciding whether to select this monetization model for your free app idea. Pros Selling online allows you to reach more people anytime, anywhere.

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The endless aisle where shoppers never have to leave empty-handed In-App Purchases In-app purchases are directly made from within the free mobile apps and are usually quite a simple process. In simple words, in-app purchases provide an ability to sell a variety of virtual items directly from the app.

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The best free game apps like Clash of Clans, Angry Birds, have enhanced their user experience by providing users with in-app purchases. According to Forbes, what mechanism can be made to make money with in-app purchases generate the highest revenue for their publishers. This monetization strategy is also expected to dominate in the years to come. Generally, this model is used by game publishers, mostly because of the digital money.

In fact, half of the games provide more than one game currency such as gems, coins, and gold. Such in-app purchases play a major role in app downloads.

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Overall, this is an interesting model for converting non-paying app users into paying users without being too intrusive. The reason for investing in in-app ads is that the format is more reliable than mobile browser ads. Moreover, improved engagement is another core reason for in-app purchases. Pros There is a good chance to obtain high profits from a low-monetization method This model is best for gaming apps as games provide more than one currency such as gems, coins, and gold.

It is the key to provide more advanced services through your app Credit details are secured safely for in-app purchases Thus apps also make money without ads, in-app purchases, and selling merchandise.

Revenue model types

Check out 7 more monetization tactics, namely 1. Sponsorship 3. Collecting and selling data 4. Freemium upsell.