App monetization has created fortune for many gaining momentum over last decade and profoundly in last five years. News like “$240 million in customer purchases makes January 1, 2017 the App Store’s busiest day ever” is hitting the headlines. Apps revenues are more than doubled compared to 2014 levels, clocking $58 Billion in 2016 and estimated to reach $78B+ in 2017. In the backdrop of significant market opportunity, I would like to offer deeper insights on App marketplace, monetization business model and key trends evolving in this space.
App Market Insights
First let us look into the current App market landscape and key analytics with a deep dive into this opportunity space as presented in the info-graphic above.
App Monetization and Business Models
App developers can monetize their Apps in many ways. For example, Play Store and the App Store offer the same revenue-sharing terms to developers, ~70% of the amount paid by users goes to developers. Choosing a context specific business model plays a critical role in sustenance and growth. The following are key business models and their characteristics.
|Business Model||Key Characteristics|
The following trends will continue to evolve in App development in perfect alignment with digital age.
- Apps are becoming Artificially Intelligent
- Embedded AR / VR technologies in Apps
- Faster web page loading on mobile devices with Accelerated Mobile Pages (AMP)
- Cloud enablement of Apps with an ability of fetching data & analytics from cloud
- Business processes and workflows are getting on Apps with the help of Micro services and componentization
- In digital driven economy, m-commerce is becoming a new standard
- Internet of Things is exploding Apps socialization
- Location based services are gaining more traction
- App security is becoming paramount
There is a promising future for value adding Apps. The current and future start up communities have to focus on developing high quality and contextual rich Apps and building tailored business models to succeed in next evolution of App marketplace. Reach out to me at Kishor.firstname.lastname@example.org for a deeper discussion on App Monetization.