Chinese companies are making big bucks from crores of downloads in India. The government has also banned about 59 such Chinese apps as a threat to security. After all, how do companies earn from free apps? What is their revenue model? Let’s know …
Most free apps can be downloaded for free from the Google Play Store or iPhone’s App Store and subscribers do not have to pay any fees for this. Actually, apps make money in many ways. These include advertising, referral marketing, in-app purchases, subscriptions, sponsorship, crowdfunding, e-commerce, etc. Some apps use their own unique methods for earning. Ticktock says that a large part of his earnings comes from service fees. But Ticketok has not disclosed what the service fee is.
Today such apps have become the basis of people’s lives. With the app, people order goods, see the route map while traveling in the city, entertain, chat or even make money by making videos. According to an estimate, there will be more than 60 million apps on Google Play Store and App Store. In the year 2020, the earnings of the operators of all these apps are estimated to reach $ 190 billion.
Most of the highest earners are free apps. About 98 percent of downloads are from free apps. The app with more money is earned by the game. According to one estimate, out of the top 10 highest-grossing apps on the Google Play Store, 8 are game apps. These include Candycrush Saig, Clash of Clans, etc.
This is the most prominent way of earning revenue for the app. According to an estimate, 70 percent of the apps give ads with such advertisements that they get paid per dispel or impression (per click). These ads can come in many ways while using the app. Such as banner ads, 10 to 30-second video ads, industrial ads which often come in the form of pop-ups, native ads that are naturally integrated into the app. Insensitive ads in which many apps are rewarded. That is, when customers watch videos with this ad, they get points.
Many apps also use referral marketing for their earnings. Under this, a company or product is promoted. Information about the company is given somewhere in the app and when the subscriber clicks there, he gets a reward. The app earns based on this click.
In-App Purchases & E-Commerce
Jio is about to introduce such a feature in India through WhatsApp. In this, you can shop through any app. It is also called a premium app model. There is a link to e-commerce or a company directly on an app, from where you can do shopping. In this, the owner of the app gets a commission.
Apps also earn in this way. They give customers e-mail and other data to other companies and then those customers are sent marketing e-mails with information about various types of products and companies.
Many apps are not free and they earn on the basis of the subscription model. It mostly consists of premium music or video apps. Such as Google Music, Netflix, Amazon Prime, etc. Many news apps also work on this model. In this, a fixed amount is charged from the subscriber every month.