If you want to make any kind of financial or other sorts of investment return on your service or product, whether it be an app or another kind of goods, it is crucial that you conduct a prior market analysis to see if the niche market you have selected is a good one. The secret to success may lie in having a thorough grasp of the subject of this segment of the market and a small but adequate number of customers.
It is practically impossible to stand out by attempting to establish another social media platform or note storage service because so many programs have already been released. As a result, it is critical to select a strong niche right away that will draw in a sizable target market for your goods. Additionally, you may save costs and build the required modifications to your plans to give your clients a sufficiently high, relevant product by undertaking a baseline understanding of the industry at the concept development stage.
What Is a Market Niche, and How Can You Whether or Not It Is Profitable
A niche in the market is merely a portion of the marketplace based on traits that its participants (i.e. consumers) share in common. Generally speaking, you will find fewer consumers in a niche the more specialized it is. The secret is to strike the right balance between the degree of market niche uniqueness and the total number of consumers. In other words, it would likely be very challenging for you to realize a return on the investment if you decide to introduce your product into a high-niche market with few customers.
Why choose one market over another? Along with your knowledge of the subject, you should consider whether you can sell your product profitably in that particular niche or not. It will be exceedingly challenging to achieve a positive ROI regardless of how wonderful the products or services you offer are if you do not have a minimum critical mass. It is crucial that you place a high value on the audience you will be able to get in touch with because even only with them, you can still turn a profit.
Strategy for Searching Specialized Niche for an App
Let’s learn how to identify a lucrative market for a smartphone app.
Examine the Google Play and App Store
Regardless of how well you know the industry, studying app store classifications will still provide you with a wealth of information. The major suggestion is to make an effort to select several categories from a similar theme. Such specialization increases the likelihood of breaking into the market.
For instance, in the category of applications for reading or purchasing books, you can specify specific genres such as science fiction and fantasy, non-fiction books, detective stories, business literature, and others. You will find it simpler to capture the audience’s interest and determine the precise interests of your target consumer segment in this manner.
Learn Which Apps Users Prefer
Nearly all profitable startups took a fresh approach to resolving long-standing issues rather than carving up new markets. Two excellent examples are Airbnb and Uber. On the notice boards in the services section, you can ‘steal’ ideas.
People are continuously looking for new methods of language learning, entertainment options, travel, online shopping, tools for organizing and creating emails with respectable subscription options and sets of features similar to Benchmark, and other interests for which they are accustomed to paying money. You may simply persuade people to pay for a mobile application if you make one for this market niche.
Identify the Market’s Size
An area of a much larger market is known as a niche market. A more focused area of expertise enables you to successfully launch your target audience and grow it in the future. However, your product’s growth potential must be sufficiently high. If not, you will either be unable to make a profit at all or you will have to compete with rivals for each user.
You are better off employing a professional marketer to assist you in determining the market viability of your mobile product because even an experienced specialist will need particular terms to do this process.
Learn What Issues Your App Will Resolve
Providing genuine advantages to your audience is the simplest approach to earning money. Consider the issues that the majority of people still struggle to resolve.
Then spend some time looking for current mobile applications that address these issues. Consider whether you can improve the product or increase its profitability for customers after estimating its approximate popularity. The likelihood of success is considerable, for instance, if you can provide the same membership at $5 per month while competitors charge $15 per month.
Tools That Stand Out for Locating App Market Niches
As you are aware, you have a variety of instruments with comparable features at your fingertips for nearly any task. It is undeniable that some are more practical and powerful than others, but they could also cost more. You must carefully choose where to invest every dollar you have, especially when you are first beginning out. Due to this, all of our attention here will be on the free alternatives that are readily available to you.
We advise using the following 3 resources to locate excellent market niches:
Keyword Planner by Google Ads
You probably already know how this tool operates if you have used Google Ads to create ad campaigns or to look up keywords for content marketing. The Keyword Planner feature is quite helpful since it enables us to limit Google searches by many criteria, such as date, region, and language, and provides information on search volume, suggested bids, and difficulty. We will concentrate on the “Categories” functionality because our goal is to delve into these until they provide precise, popular queries.
You are to apply it as follows:
- Sign in to Google Ads’ Keyword Planner and provide your billing information.
- To examine what results are returned, turn on the “Search for new keywords using a phrase, website, or category” option and enter the categories one at a time.
- Take a glance at the Keywords you receive as a result and determine whether you can discover an app about that subject.
Google Trends is the second tool we would like to introduce to you.
It provides global search volume trends for a specific keyword and its associated keywords. You may utilize it by entering the keyword you choose from the Keyword Planner and checking to see if searches stay the same, increase, or decline over time. You can probably guess which situations it might not be fascinating to concentrate on a certain term and, hence, a niche market.
Keyword Suggest by Google & Keyword Suggest by Google Play
The last resource for locating intriguing market niches are Keyword Suggest and Google Play’s Keyword Suggest, which will be our final topic today.
The search history of other users is used by Keyword Suggest. As a result, it displays search recommendations as you write in the search box. It is a live organism that evolves in response to searches. In Google Play, it functions quite similarly, however, the outcomes can vary. Popular news appears to carry more weight in Google Play’s search suggestion system. As a result, if Google suggests it to you, it is a phrase with a lot of search activity and may suggest a very lucrative niche market.
Exhibits of Lucrative Niches
Do you have any ideas for an underserved market that a new app could target? No? We have! Here are a few instances of profitable niches that are especially intriguing. They still have rather low levels of competitiveness, giving young players a chance to prosper.
Health, Wellness, and Personal Growth
Regardless of how technologies and trends develop, these areas will always be relevant.
This includes, for instance, weight control apps with training classes or diet applications with reminders. It is important to pay strict attention to fitness as well. If you provide assistance with self-development, this might cover subjects like employment, professional skills, schooling, and other things of the sort.
Such apps have one undeniable benefit: they are made for people who are accustomed to paying for practical tools.
Due to the high average user payment compared to other categories, this niche would always be profitable. Applications of this kind are created to handle chores related to the workplace, including document scanning, password storage, and other operations connected with professional activity.
The Field of Entertainment
The mobile industry’s highest revenue-generating segments continue to be gaming and entertainment. However, there is currently a lot of saturation in this market, and there is fierce rivalry.
Focusing on other application categories, for this reason, makes sense.
The most crucial stage before releasing a smartphone app is to carry out thorough market analysis and select a niche where you may succeed. Your success absolutely depends on this. Such an examination can occasionally produce somewhat unexpected findings and cause you to drastically alter your original plan of action.
We hope we have been able to help you research the market and uncover exciting business opportunities. And we also hope that you have already learned how to spot a strong niche in the market for your application and are aware of some of the more effective resources you may employ to do it.