Mobile apps are getting more popular than before with each passing day. According to some estimates, there are more than 6,000 new apps that are launched on Google Play Store. It is also reported that smartphone users on average use 9-10 apps daily. All these statistics point towards the fact that the use of different apps is more popular than ever. It is also observable that a significant majority (90%) of mobile phone applications fall in the “Free” category. It means that the users do not have to incur any cost to use them. However, the question that arises here is how they make money then? Creating an app is a hefty investment that may even take well over a million dollars. Then, why do the apps do not charge any money? They do make money, and in this article, we will tell you how they make money.
The following are some ways by which free apps make money:
Advertising is one of the most common and easiest ways to monetize free apps. A third-party advertising network may come in handy in this pursuit. The modus operandi is simple. Apps show advertisements to their users and in turn, charge for it. As of 2016, nearly 70% of free apps declared advertising as the backbone of their revenue.
CPI stands for Cost per Install. It is an innovative new way of marketing. It is the mobile counterpart of Cost per Acquisition (CPA) in the web marketing realms. The …