AfterDawn: Tech news

59 percent of apps don't break even

Written by James Delahunty (Google+) @ 09 May 2012 15:31 User comments (1)

59 percent of apps don't break even Not every app makes enough, not even close.
Stories like that of of the billion-dollar Instagram sale have put a lot of focus on the mobile app space. Research conducted by App Promo will probably dampen hopes for a lot of developers looking to become the next millionaires.

It found that more than 59 percent of apps do not generate enough revenue to break even. Only 12 percent of mobile app developers earn $50,000 or more for their apps, most of which have budgets around $30,000 for development, and also spend on average 14% of the revenue on marketing.

"With over a million applications in the market across platforms, app publishers are finding it increasingly challenging to cut through the noise and get their apps discovered and downloaded," the firm wrote in its white paper.

"Those developers that spend money and time on marketing outside of the app stores found the most success based on the revenue they had earned for their app. This core finding echoes what we believe as a leading app marketing and strategy firm, that in order to make an app a successful business you need to ensure that you have a budget and time allocated to marketing and promoting your app."

Tags: instagram
Previous Next

Related news

 

1 user comment

110.5.2012 11:49

Ah the woes of over expectations. The original app didn't 'cost' much of anything to produce, really; in the whole scheme of things. But then like all music artists & all other modern creative persons since the 1900s, the greed urchins have clambered out of the wood work to over represent not only the artist, but the medium they've produced.

Upon bloating the apparent worth of said 'masterpiece', the new owner will inevitably try to convince another equally uneducated idiot that it's worth 'investing' in & try to x100 their initial investment. I.e., making a diamond out of my original turd torpedo analogy from forums previously visited.

Thus they complain that "it just won't/didn't break even", when in fact the damn thing made more money than god & the original artist/laborers probably just above minimum wage for their toil.

History is only a manner of perspective/semantics given from the perspective of the individual writing the book.


Comments have been disabled for this article.

Latest news

Plex now available for PS3, PS4 with limitations Plex now available for PS3, PS4 with limitations (17 Dec 2014 22:56)
A little over a month after Plex released an app for the Xbox 360 and Xbox One, the personal media streaming company has released apps for the PS3 and PS4.
U.S. to blame North Korea for Sony Pictures hack U.S. to blame North Korea for Sony Pictures hack (17 Dec 2014 21:52)
According to numerous media outlets, U.S. government officials will announce tomorrow that North Korea was indeed behind the devastating hack on Sony Pictures.
2 user comments
Sony has no plans to ever release 'The Interview' - no DVD, Blu-ray, no VOD, no TV Sony has no plans to ever release 'The Interview' - no DVD, Blu-ray, no VOD, no TV (17 Dec 2014 20:30)
Sony Pictures has now decided against ever releasing 'The Interview' in any form, almost guaranteeing themselves a $100 million loss on the film.
10 user comments
Nearly everyone in Hollywood is outraged by Sony and the movie theater chain's 'act of cowardice' in canceling 'The Interview' Nearly everyone in Hollywood is outraged by Sony and the movie theater chain's 'act of cowardice' in canceling 'The Interview' (17 Dec 2014 20:00)
Following news that all the major U.S. movie theater chains would not be showing 'The Interview,' Sony Pictures announced it was canceling the release of the film, which was slated to open on Christmas in the U.S.
2 user comments
The hackers win: Sony cancels release of 'The Interview' as movie theaters bail The hackers win: Sony cancels release of 'The Interview' as movie theaters bail (17 Dec 2014 19:39)
Just hours after major U.S. theater chains said they would not screen the film following terrorists threats, Sony has canceled the release of 'The Interview,' a comedy in which Seth Rogen and James Franco are sent to North Korea to assassinate Kim Jo
5 user comments

News archive