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 Fat Jump Pro (By SID On)Developer: SID On Price: $0.99 Version Reviewed: 1.2 Download: here Requirements: Compatible with iPhone, iPod touch, and iPad.Requires iOS 4.0 or later. Located in the Warsow,Poland-SID on an independent mobile application developer has announced a recent update of Fat Jump Pro for the iPhone,iPad and iPod touch.Fat Jump Pro is a fast paced vertical arcade action for the iOS devices.Using the tilt controls the player must guide the jumping,little green hero (a healthy and crispy cucumber) up a never ending series of platforms... |
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Saturday 28 January 2012
Report Shows App Sales Drive Increased Revenue for Developers
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Okay, so this isn’t shocking news. A sale attracts more customers and results in more purchases, REALLY?! Yes, it’s true. If you’re a developer and want to increase your app sales, dropping prices is a great tactic. What’s actually impressive about an app sale is just how effective it is, and how many more customers it attracts.
A new research report from Distimo, the app analytics specialist, has revealed the impact that sales have on apps. On the first day that an iOS app goes on sale in the iPhone App Store, developers can expect to see an average increase of about 41 percent in revenue, which is an impressive number.
Over the course of the sale, developers will rake in a 22 percent increase in revenue. What’s behind the huge jump in revenue? Well, for one thing, putting an app on sale puts it on the radar of app websites that monitor sales. For example, every night at PadGadget, we use our apps tracker to find apps on sale and share that information with all of our readers. Several other app sites do the same thing, which really gets the word out and attracts new customers.
In other instances, people watch for apps to go on sale before purchasing them, which means a slight price drop could encourage people who have been on the fence about an app to take the plunge and click that buy button.
In its report, Distimo looked at the 100 top grossing apps in the iPhone App Store, the iPad App Store, and the Android Market. While an app on sale in the iPhone App Store saw an increased revenue of 41 percent on the first day, the iPad App Store’s increase was even more significant, at 52 percent. Over 15 days, iPhone app sale revenue was up 22 percent, and iPad app sale revenue was up 19 percent.
The Android Market had a less impressive day one increase of seven percent, but a much more impressive total jump in revenue at 29 percent after 15 days.
There is, of course, a fine line in app sales. It’s important to create enough of a price change to attract people to the sale, but the price drop can’t be so significant that it cuts in to overall revenue, and it needs to be at a level that will make up for the lost money in purchase volume. The information in this Distimo report is on averages, and not all developers will see these increases. Some may have greater success with app sales, and some may not see any change at all.
In fact, 44 percent of iPhone apps actually lost revenue during sales, and 23 percent of those lost more than 20 percent revenue. Dropping the price of a $7.99 app by a dollar caused a revenue loss, while a more significant price drop of $3 increased revenue. A minimum of a half price cut seems to be the sweet spot. Check out this graph, which displays the impact of a price cut at 40, 50, 60, 70, and 80 percent. For a successful sale, a price cut needs to be dramatic.
For developers trying to figure out what price to ask, the answer is not simple. It depends greatly on the type of application – those apps that are easy to make and quickly copied tend to be priced lower, while applications that require a lot of work beyond development (think navigation apps) tend to have a much higher price tag. This graph, which can be used as a guide, demonstrates the average price of the top grossing apps per category in the iPhone App Store, the iPad App Store, and the Android Market.
Though there is risk of revenue loss with a sale, the results of the report show that it is beneficial for developers to put their apps on sale every now and then, because it does pay off for the majority of applications when a significant price drop is used.
In addition to app sales, getting on the featured apps list can give an app a major boost in revenue, and we’ll cover that in another post. Stay tuned tomorrow to find out how featured apps fare in the App Store.
Via:Padgadget 
This post was written by: Irfan Jam
Irfan Jam is a professional blogger, web designer and front end web developer. Follow him on Facebook
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