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App monetization is an exception than rule!

Added about 3 years ago | As appeared first on Intel | Blog | Author: Wendy Boswell

"The vast number of mobile apps may imply that mobile is a new revenue stream that will bring riches to many," said Ken Dulaney, vice president and distinguished analyst at Gartner. "However, our analysis shows that most mobile applications are not generating profits and that many mobile apps are not designed to generate revenue, but rather are used to build brand recognition and product awareness or are just for fun. Application designers who do not recognize this may find profits elusive….There are so many applications that are free and that will never directly generate revenue. Gartner is forecasting that, by 2017, 94.5 percent of downloads will be for free apps," said Mr. Dulaney. "Furthermore, of paid applications, about 90 percent are downloaded less than 500 times per day and make less than $1,250 a day. This is only going to get worse in the future when there will be even greater competition, especially in successful markets."

The study also talked about how people are actually finding apps; most people use their friends in real life and on social networking platforms to find apps that work for them, along with ads and “recommendation engines”. Consumers are growing increasingly weary of sorting through all the vast array of available apps; while they appreciate the variety in general, it’s becoming more and more difficult to find the wheat as opposed to the chaff...

Continue reading on Intel | Blog
       

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