Mobile app developer Sydney: How Free Apps Make Money

You may have wonder why they are so any free apps either in the Android Play Store and Apple Store. Why do they develop apps, spending their money and give it away for free? The truth is they are monetising it, just in a different way. So, how do free apps work? There are two things; in-app purchases and in-app advertising. If you are planning on getting your app idea develop, publish it for free but still monetise from it then Mobile app development Sydney can guide you with your decisions.

In-app purchases

These are commonly seen in smartphone games and some apps such as Netflix, Spotify, and HBO NOW. This is where an app can be downloaded and installed for free. There are many features users can get from the app, however, they need to purchase it. For example, games. For players to get certain items or lottery or better tools to finish a level, they need to purchase something using virtual money and in order to get virtual money is to purchase it using real money. Spotify has ads in the middle of their playlist and in order to remove, you need to buy Spotify premium on a monthly basis.

In-app advertising

Depending on what kind of advertising, the app owner, the mobile ad company and the users benefit here. In-app advertising usually occurs when your app is in-demand meaning, you have a good number of active users. These ads usually appear in the bottom or similar to in-app purchases. The difference is users will have to do a certain task like installing an app,watching a video ad or others in order to get certain features of your app.

So which one should you do?

This depends on your app or what it offers to users. The best thing to do is research. Look at what similar app competitors are doing, what you can improve and familiarise yourself with the strategies and techniques they are doing to continue monetising their free apps. These steps are also included during development process with your Mobile app development Sydney. Know the figures and notice ways to monetise your free app better.