Music and Video Streaming
You likely guessed this one, and for good reason. Listening to music and watching shows or movies has become a daily habit for most people on the planet. Driving in the car, working, and relaxing at home are just three of the daily practices that usually involve one of these apps. At this point, countless variations of music and video streaming apps appeal to all walks of life. If you're interested in watching classic Disney movies, there's an app for that. Or, if you're looking for undiscovered indie music, there's an app for that too.
With such a wide variety, users typically pay for multiple streaming providers to cover all their needs or interests. As a result, the yearly revenue is astounding. In the United States alone, 1.27 billion dollars were spent last year on app streaming services. If you scale that globally, that's a lot of money coming in across the board. Part of this comes from the complicated relationship of gaining rights to shows and movies. Most popular shows or movies opt for only one streaming service to share their production with. As a result, users have to pay for multiple apps if they want to be able to access all of their favorite films.
One of the reasons streaming apps do so well is the perks they offer for continued subscription. While you can certainly pay for just one month at a time, the most successful apps tend to offer discounts for multiple months or even a year, paid in full. You've received a discounted price, and they've received a guaranteed year of revenue from you. This symbiotic relationship is a perfect example of how to remain at the top when it comes to generated income.
You might be thinking to yourself, how do apps with free versions like Hulu make money then? The answer to that is, once again, advertisements. With the free version, you cannot skip through ads as you would in a paid subscription. Because of this, streaming apps are able to secure financial gain regardless of the choices their users make. If you opt to pay for the premium version to skip ads, they're making money. If you stick with the free version, the ads you sit through are paid for by the featured companies. Streaming apps are guaranteed to make money no matter what choice their users make.
Social Media
With the recent uprising of the app Tik Tok, users have seen firsthand how lucrative social media apps can be. Tik Tok came in as the number one highest-grossing app of 2021 after it took the industry by storm. Their revenue in 2021 alone reached 4.6 billion dollars. And to think, this staggering number is just a glimpse of the money social media apps have been able to pull in yearly.
These apps make the bulk of their money from advertisements. Companies are well aware of the mass amount of people scrolling through Instagram on a daily basis. As a result, they are willing to spend a chunk of change on well-thought-out advertisements that pique users' interests. Next time you open up your favorite social media app, pay attention to just how many ads you see in the span of five to ten minutes. Between the gaps in your friends' stories, the explore page, and the influencer-brand collaborations, you can bet you'll be exposed to multiple ads in that brief period.
An interesting twist to the money-making power of social media apps is the ability for their users to make boatloads of money too. With the emergence of content creators and influencers, we've witnessed an entirely new career field open up. More followers equates to greater chances of brand deals. Brand deals result in increased exposure and organic-looking advertising. In all honesty, the entire experience seems to offer the opportunity to make money. This adds in an even greater yearly revenue if you factor in the money made in the app.
Even without content creators' income, social media apps are doing quite well for themselves. From a psychological standpoint, users are more addicted than ever, and room for growth seems endless.
Games
Gone are the days when you would rush home from school to sit down at your desktop and open a game of ToonTown. The ability to access games on your mobile device has increased the opportunities to engage in games significantly. This app genre is unique in that it can appeal to users of all ages, even children. If you've ever gone out to eat at a restaurant, you've likely witnessed children as young as two playing games on their parent's phones. This common occurrence is just one example of how these apps can keep engagement up and pull in consistent revenue. Games are an easy go-to to fill empty time like when you're waiting for your oil change or sitting in the school pick-up line.
The addictive nature of games is another impressive element that keeps these apps so popular. In 2013, Candy Crush became a nationwide craze as users competed against friends on social media. More recently, Wordle has become a widespread sensation that once again appeals to most age groups. Users post their Wordle results on social media, further fueling the frenzy. Whether a competitive game or a solo round, users seem to find immense joy in gaming apps.
Another perk that drives users to opt for games on their mobile devices is the lack of necessity for other equipment. Traditional gaming requires expensive technology like state-of-the-art headphones or a specialized console. Now, everything you need to play a game properly is found on your cell phone. Making popular games accessible on mobile devices is one of the many genius moves made by app developers. By eliminating the expenses that come along with video or PC games, developers have been able to drive traffic and increase revenue.
Dating
This one may come as a surprise, but dating apps actually bring in a hefty amount of revenue per year based on their premium services. Although most dating apps, like Bumble and Tinder, offer free versions, they also charge a small fee for added benefits. Tinder, for example, has three separate packages aside from its standard free version. Users can choose from Tinder Plus, Gold, or Platinum based on personal needs. Some negative aspects of using the free version come from limited capabilities, sitting through ads, or a limited number of daily likes. For many, it becomes a no-brainer to upgrade. And once again, the app can generate user revenue on top of their ad, click, and transaction contributions.
One barrier that has likely kept them from reaching even higher on the grossing app list is the limited time users need a dating app. If their purpose is served, matches will be made, and the app will be permanently deleted. To compensate for this, they use the premium package method we mentioned as well as employing a similar tactic to that of streaming apps. By paying upfront, users can snag a discounted rate while the app guarantees a longer income period. For example, let's say a user finds their perfect match within a month. They're ready to say goodbye and start their life with their new partner. But, they paid upfront for 6 months when they signed up. If the app hadn't sweetened the deal, they would have missed out on quite a bit of money with only one month of active use. This way, they're able to lock in users for more extensive periods even if they should opt to leave earlier.
Dating apps will likely continue bringing in significant amounts of money as the need to find a partner isn't going away any time soon. Although revenue may have peaked during the pandemic due to social distancing, users of all ages are likely to continue hunting for the love of their life (or the week).
Health and Wellness
Some might argue that this app category quite literally got us through the pandemic. As gyms shut down and social distancing became vital, most people were deprived of the usual exercise they partook in. Apps that offered at-home classes, subscriptions to pair with exercise equipment, and food consumption guides were integral to many people's quarantine experiences and what some may consider a saving grace.
Apps like Peleton made an absolute killing during this period, as their yearly revenue doubled from 2019 to 2020 and then again from 2020 to 2021. People became frantic as they rapidly snatched up at-home exercise equipment and took classes from the comfort of their own homes.
Users of these health and wellness apps could get in their movement, relieve stress, and participate in something that gave them a sense of normalcy. Now, as we return to normal life, the habits formed with these helpful apps seem to be sticking. Most apps still provide their at-home classes even though gyms have reopened, and this option has been perfect for those that travel or simply can't make it to the gym on any given day. Plus, because they often use highly trained and engaging instructors, they can get away with charging $30 or more monthly for subscriptions.
Shopping
Online shopping is a vice that most of us take part in. Although much of what users purchase may be necessary, the truth is that a good chunk of it simply is not. This works heavily in favor of the shopping apps out there as they appeal to users of all kinds. Because shopping is so broad, it adds up that this app genre has brought in quite a bit of money over the years. In-store shopping is no longer necessary unless an item is needed within a specific period. And even then, certain apps offer a quick one or two-day delivery time.
Retail is Amazon's primary source of revenue, amounting to 66.08 billion dollars this year. Their wide range of products keeps them at the top of the leaderboard, as users can find everything from shoes, technology, and books on their app.
