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This Photo Scanner App Makes $300K a Month

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App Masters11:37Open on YouTube
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The bottom line

A scanner app launched in 2020 earns over $300,000 by buying ads and locking its core scanning features behind a hard paywall. Rival research shows the market is still open, and locked features push users to pay.

Key takeaways

  • Scanner apps are a huge market that is still open to newcomers. 1:01
    • About 30 of the top 100 top-grossing US business apps are scanners, and one ranks number two.
    • The top scanner makes about $3 million from 700,000 downloads, and the leaders launched in 2015 and 2017.
  • This app gets most of its downloads from paid ads, not search. 4:06
    • It ranks only 8th for "scanner app" and 21st for "PDF scanner". The top three spots take most downloads.
    • Sensor Tower shows ads on YouTube and six more networks, which implies a strong conversion rate.
  • Its onboarding builds trust, then asks for money right away. 6:13
    • The intro shows social proof ("loved by 1 million users"), then a three-day free trial with weekly pricing.
    • The paywall has no close button until you tap continue, and the default push pop-up gets more opt-ins than a double opt-in.
  • Locking core scanning features forces users to pay. 7:33
    • Without paying, users can only import files and photos. They cannot scan documents.
    • Developers often give away too many features, so users have no reason to pay.
  • Retention and aggressiveness are the open risks, and organic growth is a different path. 9:54
    • How long weekly subscribers stay is unknown, so it needs testing.
    • Readdle's Scanner Pro ranks well for keywords and shows no paid marketing, so it leans on organic downloads.

One of the things I find developers do is they give away too many features, which doesn't really motivate the end user to want to pay you.

Steve P. Young

Chapter summaries

0:00 Finding a scanner app in the charts

Anyone can spot an opening in the app market by browsing the top charts for a few minutes.

  • Market research on the charts is simple enough for any developer to do. 0:36
    • Open App Annie top charts, filter to the US and the business category.
    • Any day works, since the pattern is the same.
    • Searching "scanner" returns 31 results.
    • Some apps may only use the word loosely, so "about 30" is a rough count.
  • A recent launch is the most useful example to study. 1:48
    • The chosen app sits at number 31 and launched in February 2020, about a year before this recording.
    • Sensor Tower gives a ballpark of its revenue, not an exact figure.
    • The number two scanner app has about 1 million downloads and advertises on Facebook.
    • It looks Japanese, though that is uncertain.

3:17 Reading the keywords

Keyword data shows the app does not lean on search, so its downloads must come from ads.

  • App Annie lists the keywords an app ranks for without typing them in. 3:17
    • Other ASO tools make you enter each keyword first.
    • The bulk of downloads go to the top three positions, and a top 10 spot is only decent.
    • Low rankings for the main keyword lead to the assumption that organic downloads are small.
    • He flags this as his own inference, not a measured fact.
  • The title and subtitle look well optimized, yet rankings stay weak. 4:24
    • He judges the app is doing the best it can on ASO.
    • The app has no rank for "scan docs".
    • He checks the title and subtitle, then tests terms such as "scan docs" and "PDF".
    • That points to paid channels as the main source of downloads.

5:49 Onboarding that leads to the paywall

The intro shows the app's value, then asks for money with a paywall built to be hard to leave.

  • Weekly pricing and a hidden close button make the paywall aggressive 6:37
    • Weekly pricing works in business and entertainment apps, based on his own experience.
    • Premium features are previewed just before the ask.
    • Tapping continue, then cancel, makes a small X appear. He is surprised Apple approved this.
    • The push pop-up result changed his mind. He now backs the default pop-up.

7:23 A home screen that sells the upgrade

The free app works as a teaser, so the upgrade prompt is always in view.

  • A premium banner sits on the screen most users see 7:14
    • The banner reads "no ads, unlimited documents, get premium".
    • He urges every developer to put an upgrade button on the home screen.
    • A workaround is to photograph a document and import it. Whether imports have a limit is unknown.
    • He would test a longer pricing page against the scrolling one. It clearly works for them, though.

9:54 Researching rivals before building

Studying how rivals earn and rank gives you a marketing plan before you write code.

  • Market research comes first, then the marketing plan 10:02
    • Look past the top charts at lower-ranked scanners and see how they make money.
    • Sensor Tower shows each app's downloads and ad activity.
    • Its keyword view shows which terms an app ranks for.
    • He checks Scanner Pro by Readdle as an example, then suggests exploring further down the charts.

In the growth library

Steve P. Young, Founder of App Masters. A teardown of a scanner app launched in February 2020 that Sensor Tower estimates earns over $300,000, showing how to research a category, infer a competitor's acquisition channels, and read its paywall. The takeaway is a paid-ad-driven app that converts by locking core features behind a weekly trial paywall shown straight after onboarding.

More from App Masters · The whole library, and ask it anything

Transcript240 lines
0:00

Coming up. I'm going to show you a scanner app that just launched in 2020 that is making over $300,000 a year. Stay tuned. What is up app nation? It is Steve P. Young founder of Appmasters.com. The place you go when you want action packed content related to helping you grow your app downloads and Mormons. Your revenues. And in this video, I really want to show off other apps that are doing phenomenally well to one, hopefully motivate you and to the opportunity in the app space is still there.

0:27

And lastly, to show you how we like to do market research. Now you, if you're a developer, can do market research. Your self. All right. Shall we get to it? First thing first, you want to go under app Annie. And so I'm under the top charts category right here. I filtered it by the U S and then I also wanted to just look at the business category. And so I thought, Hey, let's just. Go into applications and just business, right.

0:53

And this is the day. And so we're just gonna, you can pick any day. Doesn't really matter. But today, you know, here's some apps and what I noticed, if you put scanner immediately, like the number two app and top grossing, that's making the most money. Under the business category is a scanner app. I was like, whoa, that's insane. And so you can see there's like 31 different search results. Now, granted, they might be using scanner everywhere.

1:16

And so they might not be 30 apps, but let's just say roughly 30 different apps out there within the top 100. So there's about. 30 scanner apps that make up the top 100 top grossing business apps. So one, you can think of it as a category that you might want to create a scanner app or two, you might be thinking maybe that's a little bit too crowded, but that's for you to decide what I'm showing you is there is a market for scanner apps, like a huge market.

1:43

And I do know whenever I create these type of videos, you want me to find apps that have just launched. So I'm going to show you this app right here. Let me see it again. The scanner right here. So number 31 is the app that I found that just reached recently launched in 2020. Okay. So I'm going to show you the revenues of that scanner app right here. So here's the app, according to sensor tower, which is pretty accurate.

2:08

It gives you a little rough ballpark. It's not a hundred percent accurate, but it gives you a ballpark. They're advertising on YouTube and many more. Channels as well. So YouTube is just one of them, but six more networks gives you an indication of how they might be driving their downloads. And then recently launched in February of 2020. Okay. There are other apps that are making more money like this one, the scanner app.

2:30

This is the number one app. It's making $3 million off of 700,000 downloads. This one let's go back real quick. A hundred thousand downloads. This is another number two app it's making about 1 million downloads. So you could. They're advertising on Facebook. It looks like this is Japanese. I believe I can't be too sure about that, but they launched in 2015. The number one app launched in 2015 as well. And then this other app, which was pretty high up there launched in 2017.

3:01

And so the app that I wanted to pick for you guys was recently launched. So just about a year ago, as of this recording, the other thing I want to do is you definitely wanna look at sensor tower when you're doing market research to say, I wanted to think about. Potentially creating a scanner app, right. This app just launched. And so they're advertising a lot. I'm going to go back to Ambani. So if I were to click on this app, I just go right here and I'm going to go into the keyword field.

3:24

So keywords. So I want to just look at the top ranks. So unlike other ASO tools app, Annie will give you the keywords that an app, any particular. Ranks really well for, so other ASO tools you likely have to put in the actual keywords to see how well the rank, but this one you can just sort of app and it will just tell you those keywords. And so, as you can see, they don't rank really well for a lot of the main keywords.

3:51

So scanner app, number eight, usually the bulk of the downloads go to the top three positions. So number eight, As great, but for a keyword that has a lot of traffic, top 10 is decent, but you definitely want to be in the top three. So what I'm seeing is that they're not actually driving a lot of downloads organically. That's just my assumption because the keywords they're ranking for aren't that high right scanner app being the number one keyword.

4:21

So we could even say, take a look at. Here, let's take a look at their apps or presents real quick, just to get an idea of what their title and subtitles say. So scanner app, number one, scan docs. So let's put that in there. See how well they rank for that. Just to get a sense of how they're marketing this app, how they're making this 300,000. Right. So I'm gonna do this PDF. Let's see, let's throw these in here and let's see what app Annie says is there, right?

4:54

Ruler, they're 12, they have in their subtitle. So it's like, okay, I think they're doing the best they can. From an ASO perspective, they've optimized it pretty well, but again, okay. At Benny's sewing, no rank right now for that. So let's look at the PDF keyword PDF PDF scanner 21. So again, they're really driving the bulk of their downloads through these ad channels. So they're probably spending a good amount of money.

5:21

They're advertising, which can only mean that they're doing phenomenally well from a conversion perspective. So let's take a look at the app. All right. We've got the app. We're going to hit allow. I used to think that we shouldn't hit allow, but, or do that default pop-up, but I've heard from somebody in the audience who said that, Hey, it does work better than like a double opt-in. Would you like to let you know, put, send push notifications?

5:53

And then you said yes. When you hit yes. Then they show the pop-up versus just showing the pop-up. He sound, he found that more people opted in when you just show the default pop-up. So now I've changed my stance. Default notification pop-up is the way. All right. I like this. What this onboarding intro screen does is show you exactly what the app is all about. Scanner app and the love by 1 million users. I love that social proof tells you exactly what the app does along with social proof.

6:20

And I continue. I like how they're now starting to talk about their premium features. Enjoy your premium features. It tells you quick things about it. And then it says as a new ruler in there and then boom. It's asking for you for money. Now, look at this. It's a three-day free trial with a weekly, with business apps. I found an entertainment apps. Weekly pricing does actually work. So this is very interesting. Also take notice of this.

6:49

I have to hit continue. There's no X button, right? There's no way for me to get out of this. So they're being very, very aggressive. I am shocked that apple actually lets them do this. Okay. So once I hit continue, watch. And then I hit cancel you just notice that this little X close out button shows up. So it's interesting how they got it through apple this way. The other thing I really like, and I do promote most developers to do is have this little section where you see no ads, unlimited documents get premium.

7:23

Very good. This is the home screen that most of your users are going to see. And so it's important that you have your get premium or upgrade button somewhere in this home. Now, the other thing that you'll notice is that I can't scan docs without pain. So a lot of these features core features to a scanner app are actually locked by this particular app. So the only two things I can do are import files. So I can go in the files here or I can import photos.

7:55

So I can go into my photos section here. Right? Those are the two things. If I wanted to scan. I can't do it. So, theoretically, I guess I could take a photo of the thing that I wanted to scan and then import those photos. I don't know if they have a, let's see limit, got a bunch of screenshots then I'm working on. I wonder if they have a limit, so that'd be good to know. Maybe, maybe not. I'm not going to go that tomb in-depth let me import some other photos.

8:29

You can see I'm doing a lot. No tag save. Yeah, it's some files. I have some pictures. Uh, oh, this is a good one. It's my son's. Okay. So they're definitely letting us import a lot of different stuff. Super simple. I might want to test a longer pricing page on this versus this scrolling thing. Don't like this scrolling thing, but I think that it's working well for them obviously. So who am I to say? That's it guys, super simple scanner app, but shocking to me, the most surprising thing to me is they're locking a lot of their core features of a scanner app and forcing their users to pay so a balance to you guys on whether you want to be that aggressive or not as aggressive.

9:32

I do like the fact that they are locking some of these features, because one of the things I find developers do is they give away too many features, which doesn't really motivate the end user to want to pay you. So they really. For example, a scanner app probably need a scanner app, be like, shoot, I need a scanner app. Right, neither. Right now you're probably more willing to pay. I'm curious to see how well their retention is, how many people stay on to the weekly, how long they end up staying on.

10:00

So a few tests that I would want to do. And if I were creating a scanner app, I will do market research on some of these apps and even fine. Let me go back to the screen, but even fine. The scanner app that is further down and see how. They're doing from their monetization perspective. So let's see scanner pro Riedel. This one, we can take a look on sensor tower to see how well they're doing. Yeah, right here. Rita is a pretty decent sized company, 70,000.

10:31

So I want to see maybe download that. Go down further down the top charts and see how that particular lap is monetizing and what they're doing and get a sense of that. And that's how I would start doing market research and then eventually coming up with a marketing plan and you could even click on retool to see if they rank well for certain keywords. So I can go quick, really, really quick here on the keyword side of things.

10:56

Copy scanner pro so decent they're ranking. Well, so maybe. They're getting some downloads through just organic and doesn't look like sensor towers reporting that they're doing any type of paid marketing. So, so retail seems to be more dependent on organic downloads. All right guys, that's it. Let me know in the comments, if you liked this video and what types of apps you want me to take a look. So it sort of highlights some of the marketing and the market research.

11:22

And finally make sure you hit that like, and subscribe button. We're trying to grow our YouTube channel. So new content every Tuesday. And then we go live every Friday at 9:00 AM. Pacific 12:00 PM Eastern and believe 5:00 PM in the UK. All right guys, until next time, I'll see you on the next video.