Sign in with Google The heat is on for app developers to rethink their business models.
Faced with slowing growth in app downloads, app developers will need to find new ways to increase app usage and drive profitable growth.
And the key to that is using AI in app development and marketing. That move will allow app developers to unlock the exponential growth potential of the AI-powered app market, which surged 135% last year.
A case in point: Vyro AI. The leading app developer from Pakistan is reaping success from using AI to globalise its business.
The global growth roadmap for app developers: Vyro AI’s success
Vyro AI started out in 2020 by offering photo-editing apps in Asia and South America. Soon after, it began developing AI-powered apps. And today, its more than 15 content-creation apps have over 150 million downloads globally.
This is the app growth roadmap it used to go global profitably:
And here’s how Vyro AI put the four-point roadmap into practice, to grow globally as an app developer.
1. Integrate AI into the app experience
Vyro AI spotted the growth potential of AI-powered apps early on and launched its text-to-image generation app ImagineArt in 2022.
It built the app with its own AI models and tools, before incorporating other models.
Today, ImagineArt is Vyro AI’s flagship product, ranking fourth on Sensor Tower’s list of top app and design apps in U.S.
2. Adopt an omnichannel strategy
Vyro AI saw an opportunity to create new sources of growth by adding web-based apps to its portfolio of mobile apps.
The omnichannel strategy allowed it to expand into the market of professional users of web-based apps. They’re typically willing to pay a premium for more sophisticated web app features or buy a subscription.
By diversifying its app offerings, Vyro AI creates paths for nurturing its mobile app users into web app users, which increases cross-selling opportunities and its customer lifetime value.
3. Use the right monetisation strategy
The development of AI-powered apps requires more funding than the typical app. So a monetisation strategy driven by only in-app advertising (IAA) may not be ideal.
IAA revenues tend to fluctuate, and it’s influenced by various factors like cost per impression, seasonality changes, and user experience.
To establish a stable source of revenue and stronger returns, Vyro AI added in-app purchase (IAP) and subscriptions to its monetisation strategy.
App subscribers and users who make purchases in-app are highly committed users who provide developers with a recurring revenue stream.
Vyro AI worked with Google to analyse and identify markets with higher potential for monetisation via IAP and subscriptions, and the right price for subscriptions in each market.
The findings led Vyro AI to prioritise expansion into markets like the U.S., which have relatively high shares of global IAP and subscription revenues.
4. Acquire high-value users with AI-powered campaigns
To supercharge its market penetration and user growth, Vyro AI tapped into the power of Google AI in its media mix, bidding strategy, and audience reach.
It used App campaign for installs with a Target ROAS (return on ad spend) bidding strategy to increase mobile app growth.
For acquiring web app users, it paired AI-powered Search campaigns with broad match and Performance Max campaigns. And it optimised the campaigns with the value-based Smart Bidding strategies of Maximise conversion value bidding and Target ROAS bidding to increase overall revenues and ROI.
It also uses AI to generate new ad assets at scale, every other week. The assets are rigorously tested on messaging and value propositions, to ensure they’re highly relevant and engaging to users.
The ads are delivered to web app users in the most relevant markets and app categories using custom segments and its first-party data. This allows it to reach high-intent users like people who are interested in AI products, who had previously visited its website, or added something to their cart on its website.
As a result of its AI-powered app marketing, Vyro AI’s revenues surged 1.3X year over year. Its international penetration also deepened, and app downloads surged more than 2X in markets like India and Mexico, outpacing growth in established markets like the U.S.
In the age of AI, app developers need new, AI-powered business models to thrive. Vyro AI’s journey offers an effective roadmap for you to do exactly that.
By using AI to transform your apps, go omnichannel, monetise strategically, and supercharge your marketing, you’ll be well on your way to profitable global growth.
Contributor: Zuy Nguyen, International Growth Consultant
