PRODUCT DEVELOPMENT AND STRATEGY

HOW MUCH MONEY

CAN YOU EARN WITH
AN APP IN 2019?

HOW MUCH MONEY CAN AN APP EARN?

There's a lot of money in apps. Billions of dollars. But most of it is earned by a certain
type of app; many others make no money at all. It is extremely hard to put a single figure
at around how much revenue an app can generate because of the wide range of apps and
the disparity of money they produce. For example, the top 200 apps generate on
average
average $82,500
$82,500 daily, while the top 800 apps generate around $3,500. Gaming apps
also make around $22,250, while entertainment apps make $3,090 daily, so there is no
way to firmly say how much an average app makes.
The mobile
mobile market
market has grown substantially over the years and industry experts predict
continued growth. In 2018, mobile traffic accounted for 52.2%
52.2% of
of total
total website
website traffic
traffic
in the United States, and 3.6 hours that adults spend consuming digital media occurred
occurred
on
on smartphones
smartphones,
smartphones with desktops, laptops, and other connected devices struggling to
keep up. 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
idea for
for an
an app,
app,
one of your first questions is likely along the lines of "Can you make money from an
app?"

Fueled is an app and product development agency that can help you gain insight into
the potential profit you can make with your app idea. 

L E T ' S C H AT

WHICH PLATFORMS MAKE THE MOST MONEY FOR APP

DEVELOPERS?
First and foremost, you need to decide what platform(s) you want to design
design your
your app
app
for
for This can greatly affect your earning potential due to differences in market
for.
penetration and platform popularity.

In the app world, developers are in high demand and are compensated accordingly. The
Android
Android platform
platform is in the lead with an average salary of $97.6K amongst developers.
Android is a well-regarded platform because of its continued market penetration.
Apple’s
Apple’s iOS platform is not far behind — mid-level iOS developers make about
iOS platform
$96.6K
$96.6K aa year.
year. It is worth noting that both Android and iOS are "top heavy" in terms of
earnings, with much of the total revenue being earned by top developers. Some of the
younger app developers in the market have begun recruiting mobile app marketing
specialists to help them bridge the gap.
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, especially considering
the dominant Android/iOS duopoly. Once an app is a proven winner, porting it to other
platforms becomes more viable.

WHAT KIND OF REVENUE DO APPS GENERATE?

There's no denying it. Apps are big business. Global mobile app revenue is projected
projected to
to
reach $188.9 billion
reach $188.9 Gaming
billion by 2020, an increase of more than 200% from 2016. Gaming
apps dominate the list of top-grossing apps. As of April 2018, Epic Games’ Fortnite
apps
makes about $1.9 million in daily revenue, with Candy Crush Saga by King in second
almost
place at $1.3 million per day through in-app purchases. Pokemon Go raked in almost
$800
$800 million
million in
in 2018
2018,
2018 an impressive 35% increase from its revenue in 2017.

Most game apps are free to download, but the real money is made through in-app
purchases. Last year, global revenue from in-app purchases was projected
projected at
at aa
staggering
staggering  $71.3
 $71.3 billion
billion—
billion it makes sense, considering that 98% of app revenue
comes
comes from
from free
free apps
apps with
with in-app
in-app purchase
purchase options
options.
options

HOW MUCH DO SUBSCRIPTION APPS MAKE?

With over 50 million
million registered
registered users
users Match Group's Tinder
users, 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 "Passport" add-on allows
users to match with users in other locations, while "Boost" allows users to bump their
profile to the top of the pile of users in their area. In Q1 of 2018, Match Group reported
generating over $407.4 million in revenue. Tinder charges $9.99 a month for a Plus
subscription and $14.99 for a Tinder Gold upgrade. This approach has made Tinder one
of the highest-grossing apps worldwide.
Bumble is a close competitor with 50 million users and an impressive growth
growth rate
rate of
135%. Unlike Tinder, Bumble allows only women to initiate a conversation on the app
and has also grown to include sister apps for networking and finding friends. The app
was estimated to make $172
$172 per minute in 2018 thanks to its monthly $9.99
per minute
subscription option and premium features like Bumble Boost and SuperSwipe.

Pandora, Tencent Video, and iQiyi are also high up on the list of top-grossing apps.
Subscriptions generate the majority of these apps' revenue. Video-streaming apps like
Hulu and Netflix operate on subscription-based method as well.

AnchorFree's Hotspot Shield is an app that has proven to be useful on a number of

globally important issues. The app allows users worldwide to access a virtual private
network (VPN). This technology was crucial during the Arab Spring, as it allowed users
to bypass government censorship. Subscriptions cost users $5.99 a month for a year of
service, or $12.99 on a month-to-month basis. Hotspot Shield reached 650
650 million
million
installs as of 2019, and remains one of the top-grossing apps on the iTunes App Store.
installs

On a smaller scale, privately owned apps are also generating a significant amount of
Hooked is relatively simple, and yet it rarely strays
revenue. The Telepathic, Inc. app Hooked
from the App Store’s top-grossing books category. Users gain access to suspenseful
stories in the form of text message conversations through weekly, monthly, and annual
subscriptions. The app hooks users in with engaging stories but requires them to
subscribe in order to find out the ending.

Personal trainer Kayla

Kayla Itsines'
Itsines' Sweat
Sweat app is a top-grossing app that serves as a great
example for beginning app developers. The app provides subscribers with 28-minute
workouts, diet plans, and yoga videos. Sweat quickly gained a cult-like following after
its release in late 2015 and currently generates $100 million in revenue yearly. Itsines
and her husband are worth a combined $46 million.

APPS AREN’T JUST FOR MOBILE PHONES

Apps have branched out from the cellular platform as more integrated smart devices
have entered the market. Smart
Smart TVs
TVs are a staple in more than 70
70 million
million homes
homes in the
United States. The most popular apps used on Smart TVs are ones that are appropriate
for the medium and already have a very large, existing user base such as Netflix and
Hulu.

Smart speakers like Alexa and Google Home have also dominated the app market.
Ownership of these devices is predicted to skyrocket to 125.65
125.65 million
million by
by 2020
2020 with a
steady growth of third-party app purchases that surpass 1500%.

If it makes sense on the platform, it is worth keeping Smart TVs and home devices in
mind when designing your app. Expansion of platform offerings not only increases
exposure for your app but also opens it to new revenue streams.
 Picking the right platform for your app is essential

Similarly, today’s hottest video game consoles have their own app stores. A number of
apps can be found on each platform, including Netflix, Youtube, Hulu, and Amazon.
These are successful apps offering their services on new platforms to make it more
convenient for their users. It’s a good option, but not necessarily a great fit for most
people.

Another platform to pay attention to is smartwatches. With wearables becoming

increasingly prevalent, it’s no surprise that smart watches are predicted
predicted to
to reach
reach aa 51%
51%
share
share of
of wearable devices sold in 2022, a huge jump from the previous status of 21% in
wearable devices
2016. Optimizing your app to be smartwatch-compatible could likely be a competitive
advantage.

WHAT’S THE NEXT BIG THING FOR APP DEVELOPMENT?

There are plenty of opportunities for fortune in the app market. The app market has
experienced substantial growth since its conception and shows no signs of slowing
down. The market may be a bit oversaturated, but it's promising to see that worldwide
app store revenue has already reached $19.5
$19.5 billion
billion during
during thethe first
first quarter
quarter of
of this
this
year
year with huge windows of opportunity opening in China, Brazil, and India. Video game
apps are huge, multi-million dollar earners, but there is still a lot of money to be made
in less complex apps and smart home appliances.

Written by Patrick Charuza

on May 1, 2019

with Rachel Coster

Rachel Coster is a member of Fueled's marketing team, and interested in mobile

mobiletrends
trends among Millennial and Gen Z
users.

and Grace Walz

Grace Walz is a member of Fueled’s marketing team, and spends her free time devouring tech
technews
news and dumplings.
MORE ARTICLES BY PATRICK

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