How much revenue does an App generate?

An app costs money, no question. But how much revenue does an app generate? When does it pay off to make your own app?

The example of the book trade clearly shows the actual value of an app. We use sales per user as a comparison metric and compare different platforms:

App: 33 € / User
Direct Online-Shop Access: 3€ / User
Google Search: 2€ / User
Facebook: 0,50€ / User

As you can easily see, an app brings about between ten and 60 times (!!!) in revenue per user compared to other platforms. This is due to the fact that users of an app are overwhelmingly returning customers and know your company. And as you know, returning customers generate more sales than one-time customers. Apps are the tool for your existing customers.

If you now invest € 10,000 in an app and encourage 1,000 of your customers to install your app over the span of a year, this will simply create sales potential for your business. As shown in the example above, 1,000 users of the App generate € 33,000 in revenue.

Now, of course, it costs money to get customers into your  App. It depends on several factors, but you can expect costs of roughly 5 € per user. In total, there are approximately € 15,000 in costs for your App with a user base of 1,000 users in the first year.

In Austria there are a number of funding opportunities to get your App funded, like KMU Digital, digi4KMU or the Vienna Business Agency. The funding allows you to reduce the cost of your App by up to 50%.

We are be happy to support you in developing and financing your App.

Photo by Pixabay from Pexels
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