Friday, 19 December 2014

How much Money can you Make from an Android Application through AdMob

I always have this question on my mind as to how much money does android developers make after publishing their apps on the Play store. The market is without doubt a gold mine for gaming companies like Super Cell but what about indie developers?

After a through research of 6 months and launching my own app as well in the process, I have a very clear estimate about the money that is invested and the money that is gained.

Here are some average stats that you should expect after launching your first app. I'm basing these facts mainly on US audience cause they form the bulk on the Play store. Currently my app has over 40% US downloads in addition to other countries.

Based on my research, for every 1000 hits on your AdMob banner ads, you get 10 clicks by users. This means 1/100 will click on your banner Ad. I haven't used full screen interstitial ads as they take away the user experience. For every 1 click you get $0.10. This has been my average CPC for 5 months so you can expect pretty much the same.

In order to get 1000 daily hits, you need atleast 2000 active users. You always need double the amount of active users. For example, for 1000 hits you need 2000 active users (not total downloads) and for 1500 hits, you need 3000 active users and so on and so forth.

So, if you have 10,000 active users, you can have up to 5000 hits every day which mean $5 through AdMob every day. These stats are not for the game apps but you can certainly relate them if you have a banner ad in your game app.

Now imagine, if your app gets to 100,000 active users mark, you'll be having 50,000 hits daily and you can make $50 on average every day which would amount to $1500 per month as passive income. It's not difficult to reach that mark if you can come up with a quality application.

You might see people discouraging you to engage in app business and talking about how tough it has gotten but based on my observation, if you can create a good quality app, you can certainly achieve good number of downloads and some pretty hefty income.

If you have an app already published, take a moment to share your earning experience with me. :)

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