Mobile apps are reshaping how businesses operate. Research shows that people spend over five hours a day on apps, with Thailand ranking second, making up most of their mobile internet use. In 2023 alone, there were over 257 billion app downloads, highlighting how important apps are for reaching customers.
As mobile usage continues to rise, businesses without a good mobile app strategy may find themselves lagging behind their competitors. On the other hand, companies that embrace mobile apps and use their features effectively are seeing impressive boosts in sales, revenue and customer engagement.
This article will guide you on using mobile applications to increase your business revenue. We’ll cover the benefits, strategies, and best practices to help you make the most of your mobile app.
Why Mobile Apps are Good for Businesses
Mobile apps have proven to be a huge benefit for businesses seeking to boost their revenue. Here’s why:
Increased Customer Engagement
Research shows that users spend seven times more time on mobile apps than on mobile browsers. Apps naturally offer a more engaging experience, which can help your brand build stronger connections with customers. Since users who download your app are already interested, you have better chances of interacting with the right people at the right moments. For instance, if you have a product feed, let users customise their experience with options like saving favourite items or creating shopping lists. You can also integrate a review tool into your app to easily gather feedback from your most active customers.
Create a Direct and Personalised Channel
Mobile apps offer a direct line of communication between businesses and their customers, with the added benefit of personalisation. With mobile apps, you can streamline messages, recommendations and offers to each user. Features like geolocation and user profiles allow you to personalise content further, making it more relevant.
Better Customer Service
Mobile apps are a great way for customers to connect with your business. They offer easy access to information, which can boost customer satisfaction. Apps also create a quick feedback loop, encouraging customers to reach out with their questions and comments. This builds a strong communication channel between your business and its customers, making your app an excellent tool for customer service.
Market Trends and Statistics for Mobile Apps
We have compiled these statistics to help you understand how mobile apps can help your business drive revenue.
- According to Statista, the total revenue in the app market was at US$437.80bn in 2022. It is expected to grow at an annual growth rate of 7.84%, resulting in a projected market volume of US$781.70bn by 2029.
- Also, mobile apps are projected to generate more than 613 billion U.S. dollars in revenue in 2025, with mobile games being the biggest revenue generator among all app categories.
- The app market in Thailand also looks promising, generating a total revenue of €1,489.00m in 2022 which is expected to reach €2,216.00m by 2027 with an annual growth rate of 9.15% (CAGR 2022-2027).
- Lastly, the total value of global consumer spend on mobile apps amounted to 35.34 billion U.S. dollars in the second quarter of 2024.
Strategies to Increase Revenue Through Mobile Apps
The statistics we shared above give you an idea of how lucrative the mobile industry is. Are you ready to start earning from your mobile app? Here are some strategies to help you get started:
Monetising Through In-App Purchases
In-app purchases let users buy features, content, or services directly within an app, providing businesses with a range of revenue options. Even if your app is free, you can still make money by offering consumable items that can be bought and used only once, like extra lives in games, virtual currency, or accessories. There are also non-consumables, which are features that don’t expire, such as a new filter in a photo app that can be used repeatedly.
Another way to increase your revenue through in-app purchases is through the freemium model. Freemium apps are free to download, and users can enjoy some limited features but have to pay for the rest. For example, you could offer an ad-supported free version but charge users who prefer an ad-free experience. This way, both paying and non-paying users help generate revenue.
Revenue Through Subscriptions
Subscriptions are common for services like cloud storage, streaming platforms, and news apps. Users are charged regularly, such as monthly or yearly, and there’s usually a free trial period to attract new subscribers. For example, you could provide three subscription types: a basic, mid-range, and premium option. Each higher tier would offer more features, allowing users to pick the plan that best suits their needs and budget.
As users grow more familiar with your app, you can upsell them to a higher tier over time. Or, if a user wants to cancel their subscription, you could offer them the option to pause it temporarily instead of deleting their account. Canva is a good example of a business that uses this model to generate revenue.
In-App Advertising
According to Statista, ad spending in the in-app advertising market worldwide is expected to reach US$534.10bn by 2029, with an annual growth rate of 8.65%. These statistics show that app ad revenue is one of the best ways to increase a business’s revenue.
One major reason for this is the fact that most users would rather watch ads than pay for a premium version. People are often willing to trade convenience for a more budget-friendly experience.
While you prefer users to pay for your app upfront, offering a free or freemium version with ads is a smart move, as the ad revenue can be significant. Your app can include many ad types, such as full-screen ads, notification ads, capture forms, and in-app story ads.
Creating a Loyalty Program
Mobile apps can easily integrate loyalty programs, encouraging repeat business and user retention. For example, beauty retailer Sephora offers customers loyalty points through its app. These points can be redeemed for discounts or free products, incentivising users to continue shopping with Sephora and increasing sales.
Exclusive Services and Benefits
Providing unique services or benefits through your app can drive revenue. This might include access to special events, personalised consultations, or other exclusive offers that add value to the user experience.
For instance, Uber provides Uber One, a subscription service that gives users benefits like discounted rides and food deliveries, creating a sense of exclusivity while generating ongoing revenue.
Monetisation Through Download Fee
Charging a download fee is not that popular nowadays, but it is still an option for increasing mobile revenue. This method can be used when offering something valuable to the user. This strategy can work well for some businesses, especially those offering unique games or useful tools. An example is the mobile GTA San Andreas game, which requires you to buy it before downloading.
Best Practices for Maximising Revenue from Mobile Apps
Focus on User Experience (UX)
A well-designed app with a smooth, intuitive interface will keep users engaged and encourage them to return. Apps that are difficult to navigate or full of glitches will frustrate users, leading to poor reviews and low engagement.
Continuous App Improvement
Regular updates are essential to keeping your app relevant and bug-free. Based on user feedback, you can then consider introducing new features.
Effective Marketing and Promotion
To attract users, it’s important to promote your app effectively. Social media campaigns, influencer partnerships, and email marketing are all great ways to do this.
A/B Testing
A/B testing allows you to experiment with different app elements to see what performs best. Whether it’s testing different designs, features, or marketing strategies, A/B testing provides valuable insights that can help improve your app’s performance and maximise revenue.
Future Trends in Mobile App Monetisation
Keeping an eye on future trends can help you stay ahead in the mobile app market:
- AI and Machine Learning: Artificial intelligence and machine learning are shaping the future of mobile apps. These technologies can personalise user experiences, optimise app performance, and provide valuable insights for revenue generation.
- Augmented Reality (AR) and Virtual Reality (VR): AR and VR offer immersive experiences that can enhance user engagement and open new revenue opportunities. Apps incorporating these technologies can provide unique and interactive content.
- Blockchain and Cryptocurrency: Blockchain and cryptocurrency are emerging trends that can impact mobile app monetisation. These technologies offer secure transactions and innovative ways to handle payments and rewards.
Partner With Appsynth for Your Mobile Application Development
Based on the statistics and insights shared in this blog, you can see that having a mobile application offers many benefits, not just in revenue but also in terms of customer engagement and satisfaction. As you explore these strategies, consider consulting Appsynth for expert advice and support in developing and optimising your mobile business application.
