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iPhone vs Android- Differences in App Monetisation You Need to Know

As many as 49% of smartphone users open an app more than 11 times a day globally. Talking about revenue, mobile apps are predicted t generate over USD 935 billion by the year 2023. If these stats sound appealing to you, the time is just right to think about app monetisation.

So you have finally made it! You have an awesome app for your business and customers that can help you promote your brands in multiple ways. How about making your feature-rich business app a source of additional income for your company?

In this article, we are going to discuss app monetisation from the viewpoint of a mobile app development company. We will also differentiate between two arch-rivals iOS and Android OS for monetising an app.

Before we dive into monetising your app, let's have a glimpse of some essential rules of the game.

Application Monetisation- Key Factors to Consider

Let’s face it! Millions of applications are available to download on both App Store and Google Play. Every app owner tries hard to get a piece of the pie. But then, only 4% of them can crack the code and get a significant amount every month as additional income.

Here we mention the most common ways to monetise your application.

1. Freemium
The term 'Freemium' consists of two words- "Free" and "Premium". As one of the most popular and well-defined strategies, freemium enables free download of the app with some basic content. Here the focus remains on demonstrating the usefulness of a premium version. The goal should be to create enough buzz around the premium packages so that users willingly buy the paid version.

2. In-App Advertising
Every digital space is available for advertisements, and your mobile app is no exception! In-app advertising works in two ways- First, selling dedicated ad space to other companies. Second, use your application as a digital billboard to promote your services and products. As a result, you can get direct traffic from your app. But, here is the catch. No user likes to see ads continually, so you can combine this strategy with a Freemium version.

3. Free Trial
This is another popular practice that offers a limited time to use the application. Usually, the window remains open between 7 to 60 days. The limited trial is for short time and this duration varies depending on the owner’s business model and policies. If your app is designed to use daily, weekly, or repetitively and you have a reputable identity, then you can opt for a free trial for a limited period.

4. Paid Apps
This is the most challenging and complicated way to monetise your app. It is always hard to convince people to pay in advance even before using your app. A perfect marketing strategy and proper execution are necessary to show the power of your app without establishing user interaction. Also, you need to live up to every promise your marketing team has made. So, if you have a strong belief that your app excels in every aspect then its free alternatives then you can come up with a paid app.

5. In-App Purchases
This app monetising concept has started gaining popularity swiftly. It has successfully written the success stories of many gaming and other apps. In-app purchases enable users to get small upgrades and improved experiences. If your app’s primary goal is to spread the word about your products and services, an in-app purchase is a good option. You can consider various factors before integrating this option into the app.

6. Subscriptions
This is a kind of “Software as a Service” (SaaS) model that gives the best of both worlds! It offers the benefits of Freemium and Free Trial models. Here, the mobile app is free to download but its functionality is limited by time. The only difference between a subscription model and a Free Trial model is in this model, the window is extendable and users can keep it open by paying subscriptions regularly.

Rules to Keep in Mind before Implementing Monetisation

When it comes to integrating an app monetisation method, we can keep the following points in mind-

Category of Apps
These monetisation techniques work well in specific categories. For example, the in-app purchase can work wonders in gaming apps, whereas popular brands should come up with a free trial for their apps. Similarly, financial news apps can offer a limited trial offer and currency calculation apps can bring subscription models.

Target Audience
This is one of the biggest factors to consider when implementing a monetisation technique. It is beneficial to understand user behaviour and expectations. While determining the cost, you need to consider demographics and economic factors. For example, Asian and Latin American countries can have numerous audiences for your customised application.

Competitors’ Moves
You can go through both paid and free apps developed by competitors. You must beat them on different levels after analysing their activities related to apps. You can also consult a reputed mobile application development company to know the latest trends of app monetisation for an industry sector related to your company.

As per the report, the Apple App Store earns a lot more than the Google Play Store.

Let’s understand the difference in app monetisation techniques between iPhone apps and Android apps.

App Monetisation- Difference between iPhone and Android Applications

A recent report has revealed that iOS apps can get over 35% more revenue than their Android counterparts. If you wonder why iOS apps are way ahead in monetisation than Android apps then here is your answer-

Currently, over 400 million users have registered their names for a one-click payment system on the Apple App Store. It means that 400 million potential buyers are ready with money in their hands if you have an app in the App Store. This number makes a huge difference when it comes to app revenue.

Contrary to this, users on Google Play have no credit card details or registration on file. What’s more, Android app users can log in simply using their Gmail address and they may not prefer to share financial information.

Though both platforms offer effective ways to monetize the apps, it is interesting to jot down the key differences between these platforms.

Monetisation with Android and iPhone Applications

As compared to offering a premium app, it is more beneficial to use any of these app monetisation ways- in-app items and CPI ad network for your custom iPhone application. On the other hand, Android applications offer different ways of monetisation. These ways include ad revenue, paid downloads, and affiliate partnership. A mobile application development company can advise you on the most suitable strategy.

Here are some of the key points of difference between iOS and Android OS regarding application monetisation.

Share of Revenue
Android OS enjoys a lion’s share of the mobile market because of its broad rand of devices and lower entry-level price as compared to its iOS counterparts. But then, an average iOS user remains more active in using the application than an Android user. It accounts for a slightly upper hand of iOS over Android when it comes to the share of app revenue.

Paid App Monetisation
An official report has shown that only a few Android apps have implemented the Paid apps strategy whereas many iOS apps have successfully implemented this strategy. In other words, paid app monetisation technique is more profitable and effective in iOS applications as compared to Android applications.

Ad Monetisation in Non-gaming Apps
Ads have remained the most common and popular strategy for application monetisation. Both iOS and Android OS have somewhat different techniques in ad monetisation. Non-gaming Android apps witness forceful or mandatory incorporation of advertisements, which is not the case in iOS applications. As a result, 63% of non-gaming apps in Android have ads as compared to 25% of iOS non-gaming apps.

Revenue Differences
Talking about the differences between the app revenue, iOS outperforms Android OS by a huge margin. It is because iOS users tend to spend nearly twice as much as Android OS users on both in-app purchases and freemium offerings of applications.

In-app Purchases
Customised iOS applications generate way more income through in-app purchases than Android apps because iPhone users are ready to spend more money than the same for Android phones.

Push Notifications
When it comes to sending push notifications, Android OS wins by a huge margin. App push notifications stand at 91% on Android and 44% on iOS devices. It is because iOS has stringent rules for notifications and Android OS enables push notifications automatically for its applications.

Useful Tips for Effective App Monetisation

If you want to make the most out of app monetisation, here are some important tips that can help you.

  • Define user persona and set your revenue goals through monetising your app
  • Identify the target audience and the frequency of customer engagement using your app
  • Consider the pros and cons of respective platforms before initiating monetising of your application
  • It is always better to implement both iOS and Android monetisation together if your business app is available on both these platforms
  • Monitor the data related to customer engagement and app revenue regularly to make necessary adjustments

Concluding Lines

Mobile app monetisation has suddenly become one of the most crucial decisions you can make during the app development phase. You can select the right monetisation strategy and implement it properly with the help of the right app development partner. Whether you have an iOS app or an Android app, an effective app monetisation strategy can generate a steady flow of income for your enterprise.

Appmart is a leading mobile application development company in Australia. Our in-house team of experienced developers excel in native and hybrid app development domains. Whether you want to build a native app for Android and iOS or a cross-platform app for your organisation, we are just a mail away! Drop us a line at to get a quote or any assistance for building your business app.

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