How To Find A Profitable App Market Niche For Massive Growth

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There are MILLIONS of apps in the world. The number of apps available in the Apple App Store was 1.8 million in the 1st quarter of 2020, and the number of apps in Google Play Store is more than that! 

So, saying, “It is hard to stand out in that crowd.” is an understatement. That’s why it is crucial to focus on a satisfying niche that will attract a large (large enough) target audience for your application without fighting with your competitors for each user.

In this article, we’ll discuss a step-by-step guide on finding a profitable app market niche and some practical tips to put you on the map. 

What is a niche?

A niche can be defined as “an area or position that is exactly suitable for a small group of the same type” or “a distinct segment of a market.” 

Almost all markets can further be refined, or divided, by the particular wants or needs of its users. Here are the most used ways to define a niche, based on their: 

Price (e.g., discount, moderate, luxury) 

Demographics (age, gender, education level, income level) 

Psychographics (values, interests, attitudes) 

Level of quality (handmade, premium, economic) 

Geographics (residents of a specific country, city, or even neighborhood) 

Targeting a niche is a strategic business decision to provide a better service or a product to a particular customer base than its competitors who target the broader market.

For example, remote workers market is a market increasing its range, creating decorations for home offices, laptop accessories for people that like to work in a cafe, or a common work area are examples of niche product ideas. Now let’s discuss mobile app niche marketing.

Step by Step Guide on Finding A Profitable App Market Niche

Step 1: Select an App Audience You are Passionate About 

It’s 2020, everyone! You can’t just build an app and expect it to be a success. The app market is growing, and like every growing industry, to stand out in that market, you need to be there for the long haul. To do that, you have to love your app niche. Since you have a long road ahead of you when starting mobile app niche marketing. You’ll encounter some ups and downs. But if you are passionate about your audience, the ride will be great. If you are not, you won’t be able to survive this part. To learn more about how to please your audience, check out the mobile app success story of Nike+ Run Club!

Step 2: Go 3 Levels Deep When Deciding on an App Niche 

When selecting an app niche, a general rule is to go through 3 levels deep; this means starting with a broad audience and going three levels down until you find a distinct segment. 

Use the demographics as we listed at the beginning of the article to go deeper.

Step 3: Find a Burning Problem 

They will be ready to download your app if you can solve your audience’s most important problem. 

Since your audience will be comparably small, it will be easier to understand their behavior and identify problems. Focus on developing a value proposition to your audience and solve their most pressing issues.

Step 4: Check for Profitability

At this stage, check if the problem you identified is, in fact, a burning problem. And if it is, are there any products already focus on solving this problem. 

If there are no products, congratulations, you have identified a gap. And if there are similar products, there is a market for that and people are ready to use it. 

Alternative Methods To Find A Profitable App Niche

Analyze the categories of app stores from larger to smaller.

You’ll encounter a lot of useful data when you analyze the categories of the App Store and Google Play. Analyze the app stores from larger categories into smaller ones; this kind of specification will bring you closer to success. 

Check if people are spending money on similar products.

A lot of the startups did not create a new niche for their product; they found a new way to supply their current needs. For example, when we think about Uber and Airbnb, we can understand this better. Both entered a broad market, transportation, and accommodation, but they developed a new way to address the existing need. 

In the current climate, people are turning on health apps more and more, find out how to benefit from that behavior change!

Check if the market is large enough.

A niche market is, by definition, a segment of a broader market, and this narrower focus gives you an advantage over your target audience. But that shouldn’t mean a non-profitable market. 

Your app must have growth potential; otherwise, you cannot gain enough profit and cannot compete with your competitors. The audience you target should be your focus initially, and you have to scale it up in the future. 

Find apps with downloads but no updates.

One of the easiest ways to find an idea for an app niche is to “search the graveyard”. Look for apps that aren’t getting any updates anymore. To find them, skip the first 4-5 pages of results, those will show the successful apps with regular updates and happy users. 

After skipping those pages, look at the remaining apps and search the ones that are still getting downloads but are not updated anymore. There is your opportunity!

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