A recent report from Canalys highlighted the extreme concentration of income distribution across the iOS and Android stores in the US. The top 25 publishers make 50% of the revenues. 24 out of 25 of those are games publishers (the 1 exception is the Pandora music streaming service). During the first 20 days of November these 25 publishers made $60m from paid downloads and in-app purchases in the US alone. Is there still room left for smaller publishers? How can smaller companies succeed and start winning on the app stores?
Month: January 2013
Currently the vast majority of mobile app advertising is used to generate new installs. At the same time, for some of the most successful revenue models, a small fraction of the most active users generate the bulk of the revenue. Free-to-play games are a good example of this model but there are similar in-app purchase driven schemes in other categories. Whilst a user is still very engaged with an app it’s likely that the most cost effective way to increase their spend is within the app. However, if an existing user stops using an app regularly ,then might there be more value in re-engaging users than acquiring a new user?