5 BENEFITS OF INVESTING IN AN IT APP RATHER THAN ANOTHER APARTMENT

The mobile app market is experiencing a dramatic upward spike. We’ll tell you why it’s better to invest in mobile app development than real estate.

Why should you order app development instead of investing in real estate?

Investing is a matter of weighing the pros and cons before making an investment. So what is the advantage of investing in app development rather than buying an apartment?

If you compare app investing with real estate investing, you first need to analyze both markets. Given the challenging global environment surrounding the COVID-19 pandemic, the real estate market is not in a good place. The reasons are as follows:

1. Reduced solvency of potential buyers.
2. Rising unemployment.
3. Companies transitioning to a remote work format.

Large buildings are empty as workers move out of offices and the rental/lease business has come to a standstill due to restrictions on travel between cities and countries. Small businesses are also abandoning rented premises because of the crisis they are experiencing.

The mobile app market, on the other hand, is experiencing a sharp upward spike. In April, the TikTok app earned more than YouTube, Netflix and Tinder, as reported by Bloomberg in its article. This is an example of using a mobile app to make money. Almost any smartphone program can be successfully monetized.

Real estate is a monumental asset. It has a number of purposes in which it can be used. These include:

• Daily or long term rentals.
• Office space.
• Retail space.
• Hosting events.

All of the above are capable of generating revenue. But it’s still a very narrow range of possibilities. The app has no such restrictions. There are applications:

1. Entertainment.
2. Educating.
3. Selling.
4. Advertisers.
5. Combining different functions and others.

This gives the company that has developed its own app on an Android or iOS smartphone an advantage.

Reasons to choose application developmentrather than a real estate investment are as follows:

1. Automate your business with a mobile app.

Mobile app creation is a powerful tool for business automation. The app, once installed on a smartphone, is at your customers’ fingertips. Unlike the website, the application is initially designed to work on a smartphone, so it does not overload the smartphone system and loads quickly.

This increases customer loyalty and makes it affordable to automate sales funnels. This will require thinking through a step-by-step user journey from first opening the program on a smartphone to purchasing or ordering your services. By getting what they want in 3-4 clicks on the screen, a person does not have time to change their mind about making a purchase.

2. Mobile App Flexibility.

Developing a mobile app allows the company to be flexible. Depending on the market situation, it is simple to add new features and special offers for customers to the program on your smartphone. For example, the restaurant business had to refocus on food delivery during the quarantine. The mobile apps through which people place orders have helped them, among other things.

In the Domino’s Pizza Ukraine app you can place an order for pizza and drinks in a couple of clicks. Having once specified the delivery address, bank card number for payment and phone number, a person selects them from a drop-down list in one click. As a result, it takes 3 to 5 minutes to place an order. Add to that hot pizza delivery in 30 minutes, and you get a loyal fan of the company who uses its services regularly.

3. Communication with the user via a pobil app.

In real estate, it’s difficult to stay in constant contact with your target audience and even collect analytics data. The app solves this problem in a much simpler way.

• Once the user installs the app on their smartphone, push messages can be sent to them, or notifications can be sent within the program. Telling about promotions, discounts and special offers will become easier, and the user will get pleasant bonuses.
• In the app, you can track different types of metrics: user journey from program opening to purchase, browsing history, number of button clicks, and total screen time. By getting this data, you optimize the program for the individual and improve its performance. As a result, both the user and the company are satisfied.
• The app is an additional source of earning money from advertising. By setting up targeting based on the collected analytics and providing advertising space within the app, you get additional revenue from your partners’ sales.
• Leave a feedback box and get real feedback on the company and the app. Use them to optimize your application and increase user loyalty by quickly resolving customer-reported issues.

4. Virtual sales pitch.

The downside of real estate is that it is tied to a specific point on the map. Buy a building in the center of the city – and get a high chance to rent out the space for offices or retail outlets. Purchasing real estate in a dormitory area, it is more difficult to realize its potential: the number of interested clients is reduced.

The app is different in that it is not location-based. You can use it when you are in another city or even abroad. Of course, it also depends on the focus of the business.

For example, the Uber app allows you to call a car only in cities and countries where the company provides transportation services, which makes sense. But a mobile app doesn’t have to have such a clear geographic location. The social networking site Instagram is used all over the world. According to Bloomberg, the app generated more than $20 billion in ad earnings for Facebook Inc in 2019.

You can learn about Instagram marketing in our article .

5. Covering a larger target audience and increasing revenue through the mobile app

Buying an apartment in Kiev will bring you profit if you decide to rent it long-term or daily. It can also be turned into an office. In both cases, based on market prices, it is possible to calculate an almost exact annual profit.

In the case of Android or iOS app development, there is no “ceiling” on earnings. Success depends on the promotion of the mobile app and proper communication with the target audience. By building up the number of users of your program, you will build up your earnings. Track trends and add new features – and the number of installations will grow.

Mobile application development: 3 successful cases

Application development, the price of which depends on the complexity and scale of the project, breathes new life into different companies. We’ve collected 3 successful examples of apps that brought profit to their creators:

1. Mi Fit. XiaoMi’s apps coming in addition to the fitness bracelet is an example of proper product packaging. By specifying one’s weight and height, setting a physical activity goal for the day, and tracking daily calorie expenditure, one pays more attention to one’s body and health. The bracelet counts your heartbeat, the number of steps walked per day, and indicates the fuel saved by walking. XiaoMi sells fitness trackers and has launched its fourth version, the Mi Band 4, in 2019. The app also provides space for advertisements to increase the company’s revenue.

2. Monefy. A mobile app designed for tracking money spending and budgeting. A clear categorization system, the function of using different currencies and the separation of cash and non-cash funds allow you to keep track of your finances. Keeping an eye on sources of income and spending contributes to savings, among other things. The app is not monetized through a related product, unlike MiFit. For a small fee, the customer buys a broader package of features.

3. InShot. A video editing app used by bloggers and regular people. The program provides the ability to shorten, speed up, modify videos. Adding sounds or music, applying filters, mirroring videos are available. The creator company makes money from selling additional features – the main version of the app is free. Both individual features and the premium version of the application, which includes all paid add-ons at once, are available for purchase. InShot is an intuitive video tool, ranked among the top 5 video processing programs on your smartphone.

We talked about the best ideas for mobile apps in our article .

Order mobile application development in KOLORO

Whether to buy an apartment or invest in a mobile app, the choice is yours. Both types of investments have prospects in case of proper promotion and wisely designed marketing strategy.

You can order mobile application development from KOLORO. Our company is ready to provide full project support – from the development of the application idea to its promotion and optimization.

We are also ready to help in developing the company’s marketing strategy and brand positioning. The cost and details of cooperation can be discussed over the phone, or by writing to our e-mail:

hi@koloro.ua

+38 (044) 223 51 20