For appraisers, the mobile app market is the best to tap into because of several reasons. For starters, the mobile app market is all set and positioned to increase in the coming years.
Secondly, the mobile app market value is increasing as we speak. The primary reason for this drastic shift is the pandemic in which nearly every business, small or enterprise-level, realized that having a digital presence is critical to success.
Furthermore, specific niches in mobile apps such as gaming, productivity, entertainment, and others have their own specific audience. Millions and even billions of users search for specific niches on the Google Play and App Store, making these categories extremely impactful.
Therefore, the mobile app market has certainly got many perks for appraisers because they’re more likely to evaluate the market and make informed and well-planned investments that ensure amazing outcomes.
From mobile game development to productivity apps, there are literally many categories out there that you can tap into to earn revenue.
However, strategic planning, revenue streams alignment, and market research are also necessary elements that you’ll need to get your app to succeed in the market.
Coming back to the topic, if you’re an appraiser looking to tap into the massive mobile app market, here are some of the most essential details that you must know.
Let’s get started!
Mobile Gaming Apps Are Crushing Revenue Records Worldwide
Let’s talk about the most lucrative niche in the mobile app world.
Mobile games are smashing records and redefining the mobile experience for a long time now.
Since the inception of the Google Play Store in 2012 and the App Store in 2008, mobile games have been an integral part of both stores.
Even when the stores (iOS and Android) were in their infancy, mobile games started popping up and breaking global revenue records.
People started loving the new experience they were getting on smartphones, which made the overall mobile gaming category so successful.
The whole experience was new and innovative, let alone convenient enough to be carried anywhere by the users.
Furthermore, here’s a list of some of the most successful and innovative games that have been crushing revenue goals since their inception:
- The honor of Kings developed by Tencent Games generated a revenue of $9,974,000,000.
- Monster Strike, developed by Mixi, generated a revenue of $9,210,000,000.
- Clash of Clans, developed by Supercell (Tencent), generated a revenue of $7,000,000,000.
- PUBG Mobile, developed by Tencent, generated revenue of $5,100,000,000.
- Candy Crush Saga, developed by King, generated revenue of $5,850,200,000.
Looking at the staggering revenues mentioned above, it’s quite easy to comprehend the limitless potential of mobile games.
However, one thing that remained the same that helped these games achieve drastic success was that they all were innovative and bought something new to the table.
This means that if you’re willing to ensure market success for your app, you need to make sure that your app is innovative and new.
It should deliver an exceptional experience to the users aided by a value proposition that the users just can’t resist.
Earning Through Mobile Games Is Easier
The mobile game’s revenue was expected to surpass the $76.7 billion mark by 2020. This expectation is a testament to the potential that mobile games have for the appreneurs.
Furthermore, some other studies revealed that 62% of users install a game on their smartphone within a week of owning it.
The fast-growing nature of the mobile gaming sector ensures drastic growth for the games currently uploaded on both Stores.
The Countries Dominating The Mobile Gaming Genre
We’re clear on the boundless revenue that mobile apps are generating for businesses from the above details.
However, there are still some other critical details that appraisers must know before tapping into the mobile game market, and the countries dominating the mobile game genre seem to be one of them.
After thorough research, we’ve extracted the details of the countries that dominate the gaming market. China, United States, and Japan are the major countries that have captured the significant market value of mobile gaming.
In fact, these markets captured approximately 75% of the entire consumer spending back in 2018. That said, the mobile gaming industry is still growing, and there’s still significant market value that can be captured either by developed nations or by developing economies.
Since the digital world is all about innovation and experience, the better the digital product is, the more likely it is to get traction in the market resulting in a drastic increase in revenue and, in some cases, becoming an overnight success.
Furthermore, China’s strategic market penetration has proved to be the most successful strategies in recent years. The company has captured a significant market over the years in the mobile gaming category.
In fact, a government department restructures that wiped around a market value of $200 billion from the Chinese developed Tencent resulted in the company suffering heavy losses. Even after this drastic change, the title of the world’s largest gaming company goes to Tencent.
The future of Chinese game publishers? Well, they’ll continue to push the boundaries – therefore, capturing significant market value.
The Monetization Strategy That Mobile Game Developers Leverage to Earn Revenue?
The Free Game Revenue Model
Smartphone users expect free games from developers.
In fact, the most downloaded game ‘PUBG,’ which has over 1 billion downloads, is available for free on the Google Play Store and App Store.
Additionally, for mobile games, the freemium strategy seems to be the perfect fit as most users intend to download a free game from the stores. Later on, the mobile game development company can show in-app ads to the users.
Once the users find the features, offerings, deals, or any other premium component valuable to increase their gaming experience, they’ll likely pay for the feature.
Therefore, this revenue stream just happens to be the best one until now and the most effective.
In App-Ads Model
The second most effective monetization model is showing the users advertisements within the game and giving them every feature and functionality of the app for free.
This model can be turned into the affiliate model. The developers can earn a significant amount of revenue for showing their mobile game users’ specific ads.
Once the users make the purchase, the developers take a commission from the product owners. Also, this revenue model just happens to create a win-win situation for the advertiser and the game developers.
Where the mobile developers can allow the users to use the full version of their app for free, they can earn revenue through the affiliate model without compromising the features or experience of the users.
However, you do need to target a specific user base for this revenue model to work. For example, suppose your game is a live-action game. In that case, chances are that your audience will be more interested in buying stylish products like bandanas, hats, or clothing.
Showing this specific audience ad of beauty creams will not result in any sales because the audience is not interested in these products.
Therefore, relevant ads will do wonders for the games using this monetization model.
With all the details out of the way, it is pretty much obvious that tapping into the mobile game market is an amazing choice considering the revenue that the innovative mobile applications are generating.
Furthermore, the directions mentioned in the blog will enable you to choose the perfect path for your mobile game development.
For example, creating the perfect value proposition, delivering an exceptional experience, and creating an innovative app allows you to gain a competitive edge because there are several well-entrenched games in the market.