Wednesday, September 7, 2016

Evolving App Store Business Models

David Smith (Hacker News):

I don’t have solid data going all the way back to 2008 when I launched my first app, but I do from 2012. In the last 4.5 years the split of where my revenue comes from has followed a clear, inexorable march from being paid-based to advertising-based. Starting in 2012 advertising in my apps made up around 10% of sales whereas now it is nearly 80%. That increase has come almost entirely from a near collapse of my paid upfront sales (with my in-app purchase income largely unchanged).


The sizable jump in advertising revenue this year was caused by switching away from iAd to AdMob when Apple announced they were discontinuing that advertising platform. The dip in revenue from January to May of this year was caused by staying on iAd even when their rates started to slide, likely an early indication of the end of the service.

I wonder how much revenue Apple is losing by discontinuing iAd.

Russell Ivanovic:

In 2008 we made all our money from paid apps. In 2016 we still do and our revenue is higher than ever. There is no one rule for everyone.

I know plenty of devs who are struggling in every business model. Paid, IAP, Ads. Being indie is not easy. There is no silver bullet model.

Previously: Apple Eliminating Its App and Radio Ads.

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