Website or Mobile App - Which One is More Profitable?

byAli-M

2.9K followers

Updated 7 years ago

Which one makes more profit for online business: a website or a mobile app? The answer to this question can totally change the process and the result of an online business. Some ideas from the very beginning clearly show that are suitable only for one of them, but many ideas can work on both platforms; and sometimes we prefer to choose between a website and a mobile app before developing the idea. Most successful online businesses work on both platforms; however, what’s the start point? To answer this question, we will compare the pros and cons of these two platforms as well as review 10 successful online businesses according to the platform they`ve chosen.

What determines whether a website or a mobile app is better?

• Your Audience. The answer to this question can be easy or hard. Easy for ideas that are designed for mobile apps from beginning and hard for an online store or service. If making the decision becomes difficult, do validation (link).
• Customer Value Proposition. Please, note that we’ve said Customer not User. Each user does not necessarily become a customer, so only think about the audience that is going to pay to your online business directly or indirectly. What’s the best platform for your offer to customers?
• Technical Issues. Don’t forget that applications run on an OS directly, but a website runs through an interface platform. Ideas that need cell phone hardware, such as camera or compass, should run as application. Of course, at the moment!

10 famous online businesses – Web or Application?

Note: In this section, we mean a service which is focused and financially dependent on the platform, otherwise, all big businesses run on both website and mobile platforms.

Amazon & eBay (link): Both Amazon and eBay focus on the web platform. At the time of Amazon release, there was no shop version for mobiles like today and web platform was the main for it. eBay also developed its web platform version first, and then created an app. Having reviewed the development of different versions of both e-commerce companies, we come to a conclusion that developing a website is more important than its mobile version for both of them. In fact, the mobile version develops after changes are applied to the website.

iTunes & Google Play (link): That’s not strange that both companies focus on the mobile platform because they’re stores for Android and iOS apps and their mobile versions have more features and information compared to their web versions. Google Play focuses on the web platform more compared to iTunes.

Groupon & LivingSocial (link): These two group buying business are available on both web and mobile platforms, but their main profit comes from the web. The only difference is that Groupon`s mobile version is more practical and developed than LivingSocial`s one.

Toptal & 99designs (link): Two popular freelance websites focus on the web and don’t offer a mobile version.

Craigslist & USfreeads (link): These two famous free classifieds businesses act differently from each other. Craigslist is active on the web and provides many features on its mobile app as well, but USfreeads focus only on the web.

Pros & Cons of Websites and Mobile Apps:

• The main advantage of the website is that it can run in all web browsers and devices that have Internet connection. You have to provide different apps for different OS (Android, iPhone, Windows Phone), but you don’t need different websites.
• Web content is able to index in search engines directly, but it’s not the same for applications. Of course, beside the application there can be an active blog for content marketing.
• The costs of developing and running a website and an app (which provides the same service) aren’t the same. Website design and development is cheaper than for application.
• The OS provides more functionality and sustainability to its applications compared to the website. For example, an application can run in one tap, but you need the Internet to access a website.
• Access to specific hardware, such as camera or contact list, is easier in application, but that’s not possible for the website at the moment.
• For introducing and downloading an app, an interface like AppStore is necessary, but a website is accessible just with a web address.
• In addition to developing cost, the website has web hosting and domain costs too, but an application alone does not have those costs.

Difference in services and sales between the web and mobile platforms:

Selling products and goods: Reviewing successful online businesses shows that selling physical and downloadable products is more successful via websites compared to applications. So, if you’re planning to sell a product or a downloadable item, it’s better to focus on the web platform first.

Selling services: It’s almost the same for services, but value proposition is very determinative. For example, an advanced English learning website which includes many courses, trainings and exams can be more successful as a website, while a normal English learning app for improving speaking skills can succeed as a mobile app.

Attention to GeoMarketing: Due to portable nature of smartphones and features such as GPS, compass and map, marketing based on user’s location or GeoMarketing (link) can earn more success on the mobile platform.

Game and Entertainment: Games independently aren’t online businesses, but they’re products and come from a game business process. Generally, web-based games aren’t famous like the same before and mobile games are more successful in this field nowadays.

Social Networks: In general, social networks are more successful on the mobile platform these days because in this way they can get audience’s attention much better and have better access to users. However, this is a general opinion and can change after reviewing value proposition and platform structure.

Education: Education is almost the same on both platforms like selling services. There are successful businesses on both sides and details should determine the priority.

Selling Content: Online businesses and selling content websites such as news, blog and magazine websites are more profitable on the web these days compared to applications; and mobile apps actually act as a supplement for the main site.

Focus on only one platform at the beginning

It’s better to avoid developing your online business on both platforms when you’ve just started; even if your business is well-known and there are many similar models. There are many reasons for that:

• Cost. When you focus on one platform at the beginning, the cost of setup and developing your project will be much lower.
• Time. Focusing on one platform make the time of setup, register and step out of business start-up phase shorter.
• Fundraising. Stock selling, assignment or transmission of the project will be easier at this level.
• Changing or turning the idea. Your focus on one platform lets main changes, turning the idea or even temporary failures not happen on both sides. So your business risk will be reduced.
• Branding. Marketing and advertising will be easier, costs and error percentage – lower in one platform.

Conclusion:

• Focus on one platform (Website or Application) at the beginning. Then when you get stability and income, develop your business on another platform. You may have heard this sentence a lot “Every website needs an application”, but, in our opinion, this process is totally different, because every website isn’t an online business.
• Spending enough time at the planning level as well as detail review on value proposition, should determine your platform, not only your interest and side issues.

Hope you enjoyed this article and now are able to determine the platform for your online business easier. Feel free to share your opinion in comments and let me know your opinion and what platform you’re going to choose in the future and why!
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