There are 1 billion free android apps available in Google Play Store(Apps Store)(2013). Many of them generate thousands of dollars every month. Some of them makes Million dollars in a single month. Now, How these free android apps makes money ? The answer is Ads. These android apps developers using third party advertising networks to makes money from their free android apps.
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| Ads in 'Angry Birds Rio' Games |
Angry Birds is the most popular free android game apps in Google Play(Apps Store) developed by Rovio Entertainment Ltd a billion dollar company. Everyday there are 200 million minutes(16 Years) are played by their 250+ million active users. They makes about $215 million dollars as revenue last year(2014). They provide their own advertising network in their apps and they also sell different levels in the games.
Now, let's talk about the basic. Android is a new type of business market that are invented in 2008 by Google Inc. Generally Android OS(operating system) is a platform that runs by different type of apps. So, we install different apps in our android device. Maximum of these apps are free to use. Now, think about that, developers costing hundreds even thousands of dollars to create these apps and they gives you that for free. No, they invest money on these apps to make profit not to lose their money. Now, How they do it ? How they makes money from their investments on free apps ? They got 2 different options. 1st: they sell somethings on their free apps(such as levels, services, up-gradation etc). And 2nd: Sell their free apps traffic into third party ad networks means Advertise on their free apps. People love apps, they spends lots of time on different free apps such as Social ,Entertainment, Gaming, Educational, Health & Fitness, Photography apps etc. And they generating traffic to those apps. Now, if developer of those apps are advertised on that apps people will see some kind of ads such as Banner, Text, Interstitial and Pop-under ads based on user interest. That's how developers makes money from their android free apps.
Let's talk about an Example:
Suppose, You have 5 different Health & Fitness tips based free android apps and they are listed in Google Play(Apps Store). Each of your apps are downloaded 1000 of times. Now, you got total 5000 downloads and got total 2000 active users on your apps. And you get total 28000 impressions from your 5 android apps(14 impression per person on each month). Now, How you will makes money with these impressions that generated by your free apps. Now, you have to advertise your apps by third party ad network such as Google AdMob, AdCash, MoPub, Amobee, HasOffers etc. There 2 type of ad bids are available for apps: CPM(cost per 1k impression) and CPC(Cost per Click). If you get $5-$15 per CPM or, $0.20-$1.50 per CPC, then you will earn total $180 profit from these 5 android free apps. Now, it's just an example. You can earn more than that or, less it's depends on your business project size and promotions. If your apps based on a good quality or, rich keywords then you will get more CPM and CPC and your profits will increase.
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| Example: 5 Apps Makes $183.96 Dollar in a month |
See Also:
Top 5 Android Developer to Hire for you Campaign
How much it Cost to Hire an Android Developer to Create an apps
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