Mobile applications and games - business models, functionalities and target groups

Mobile apps and games are among the fastest growing segments of the technology market. Companies are using them both to improve operational efficiency and to engage users and monetize content. The success of an app depends not only on an innovative idea, but also on a well-thought-out business model and properly selected functionalities.

1. business models for mobile apps and games

The choice of monetization model for an app depends on its type, function and target user group. Here are the most popular models:

• Freemium - The app is free, but offers additional paid features or premium subscriptions.
  Examples: Spotify, Evernote, Duolingo.
• Subscription (SaaS) - The user pays a regular fee to access the app. Popular for business tools, health and personal development apps.
  Examples: Headspace, Adobe Creative Cloud, Netflix.
• Advertising model (ad-based) - The application is free, but generates revenue from advertising (banners, video ads, native ads). Often used in mobile games and social media applications.
  Examples: Facebook, TikTok, Angry Birds.
• In-app purchases (IAP) - Users can make microtransactions, buying virtual items, additional features or services, for example.
  Examples: Clash of Clans, Candy Crush, Fortnite.
• One-time fee model (paid apps) - The user pays to download the application. Used less frequently, mostly for high-end utility apps or premium games.
  Examples: Monument Valley, Minecraft Mobile.
• Marketplace/Marketplace Commission - apps that act as sales platforms, taking a commission on transactions between users.
  Examples: Uber, Airbnb, Vinted.

2. key functionalities of mobile applications

The app's functionalities depend on its purpose and target audience. Here are some of the most important features of modern mobile apps:

• Personalization - apps tailor content to users based on their activity, preferences or AI.
  Examples: Spotify, Netflix.
• Push notifications - inform users about news, promotions or important events in the application.
  Examples: Twitter, Uber, banking apps.
• Integration with social media - facilitates registration, content sharing and user interaction.
  Examples: Instagram, TikTok.
• Geolocation - used in transportation, delivery, travel or dating applications.
  Examples: Google Maps, Tinder, Glovo.
• Offline mode - The ability to use the application without an Internet connection.
  Examples: Google Docs, Pocket.
• Artificial intelligence (AI) and chatbots - Content personalization, customer service automation and content recommendations.
  Examples: ChatGPT, Google Assistant.
• Mobile payments - Integration with Google Pay, Apple Pay, BLIK, PayPal, etc.
  Examples: Revolut, Starbucks.
• AR/VR (Augmented and Virtual Reality). - used in e-commerce, education and entertainment.
  Examples: Pokémon GO, IKEA Place.

3. mobile games - mechanisms, functionalities and target groups

Types of mobile games

Mobile games can be divided into several main categories:

• Casual Games - Simple, easy to learn and engaging games.
  Examples: Candy Crush, Flappy Bird.
• Strategic and simulation - requiring planning and resource management.
  Examples: Clash of Clans, SimCity.
• MMORPG (Massively Multiplayer Online Role-Playing Games). - multiplayer online games developed over the years.
  Examples: World of Warcraft Mobile, Albion Online.
• FPS/TPS (First/Third-Person Shooter). - Action games in first- or third-person perspective.
  Examples: Call of Duty Mobile, PUBG Mobile.
• Puzzles and logic - stimulating the mind and developing analytical skills.
  Examples: Sudoku, Monument Valley.
• Sports and racing - Games that simulate sports or racing.
  Examples: FIFA Mobile, Asphalt 9.

Key mechanisms in mobile games

• Awards and ranking - Points, badges, scoreboards motivate users to play longer.
• Daily missions and challenges - increase user engagement and retention.
• Multiplayer mode - allows you to play online with other users.
• In-game payments - Unlocking levels, buying virtual items.
• Interactive ads - allow earning without users having to pay.

Digital applications are not only a convenience, but also a competitive advantage. They enable companies to respond faster to customer needs, better manage data and automate key processes. In the era of digitization, any company that wants to grow should consider implementing dedicated IT solutions.

Do you want to develop an application to improve your business operations? Contact us and find out how we can help!