iPhone AppStore Secrets - Pinch Media
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What we've learned from 30,000,000+ downloads - AppStore structure, average active user base, suitability of advertising vs. paid application sales, average session time, and more. For more information, contact Pinch Media at www.pinchmedia.com or e-mail support@pinchmedia.com.
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iPhone AppStore Secrets - Pinch Media
- 1. ¡®AppStore?Secrets¡¯? (What?We¡¯ve?Learned?From?30,000,000?Downloads)?? Greg?Yardley? Co©\Founder?&?CEO? greg@pinchmedia.com? 646©\330©\8540?
- 2. 30,000,000?Downloads?!? (Actually,?it¡¯s?a?fair?bit?more?than?that?by?now.)? ?? Since?AppStore?launch,?Pinch?Media?has?provided? developers?with?an?analyUcs?library?to?monitor?app?usage? ¨C?unique?users,?sessions,?usage?Ume,?etc.?? ?? Since?AppStore?launch?we¡¯ve?also?been?collecUng?every? bit?of?detail?possible?from?the?AppStore?¨C?rankings,?price? changes,?you?name?it?¨C?and?tying?it?back?to?our?analyUcs.? ?? Our?stu?¡¯s?in?a?few?hundred?applicaUons?right?now?¨C?it¡¯s? been?in?the?#1?free?and?paid?applicaUon?several?Umes? each,?and?has?been?in?at?least?ten?of?the?top?100?free? applicaUons?for?a?while?now.? ?? With?all?of?this?data,?you?learn?a?few?things.???
- 3. ApplicaUon?Rankings? (How?does?the?AppStore?work,?anyway?)? For?every?ranked?list?on?the?AppStore,?here¡¯s?a?good? rule?of?thumb:? 24©\hour?? rolling?window?? of?units?downloaded? (So?bunch?up?your?publicity.)?
- 4. What?do?you?get?by?appearing?on?a?list?? ?? Appearing?on?a?top?100?list?increases?daily? new?users?by?an?average?of?2.3x.? ?? Greater?gains?result?from?appearing?in?the?top? 25?and?top?10?lists?¨C?more?variable,?but?oaen? an?order?of?magnitude.? ?? However,?it¡¯s?not?permanent.??Apple¡¯s? AppStore?is?structured?for?maximum?turnover.?
- 8. In?general¡? ?? Don¡¯t?mess?with?a?posiUve?download?trend.? ?? Decreasing?price?is?oaen?worthwhile.? ?? Aaer?you¡¯ve?been?broadly?exposed,? experiments?have?less?e?ect.?? The?average?price?cut?increased?demand?by?130%.? The?average?price?increase?drops?demand?to?25%.?
- 9. What?do?I?need?to?get?on?a?list?? For?free?applicaUons:? Top 25 Top 100 six months ago 10,000 1,000 three months ago 11,000 1,500 today 20,000 5,000 (Apple?had?a?big?Christmas!)?
- 11. Do?I?have?a?community?? (aka?¡®How?much?is?my?app?used?¡¯)? ?? So?you¡¯ve?got?a?million?downloads?¨C?congrats!?? But?what?percentage?use?your?applicaUon?the? next?day???The?day?aaer?? ?? The?biggest?applicaUons?in?our?system?have? +3MM?downloads?¨C?but?what?kind?of?acUve? user?base?does?a?download?translate?into??
- 12. ¹ó°ù±ð±ð?´¡±è±è±ô¾±³¦²¹±á´Ç²Ô²õ?©\?±«²õ²¹²µ±ð?°¿±¹±ð°ù?°Õ¾±³¾±ð? 25.00%? Users?Returning?(%?of?Day?0)? 20.00%? 15.00%? 10.00%? 5.00%? 0.00%? 1? 11? 21? 31? 41? 51? 61? 71? 81? 91? Days?Since?First?Used?
- 13. ±Ê²¹¾±»å?´¡±è±è±ô¾±³¦²¹±á´Ç²Ô²õ?©\?±«²õ²¹²µ±ð?°¿±¹±ð°ù?°Õ¾±³¾±ð? 35.0%? Users?Returning?(%?of?Day?0)? 30.0%? 25.0%? 20.0%? 15.0%? 10.0%? 5.0%? 0.0%? 1? 11? 21? 31? 41? 51? 61? 71? 81? 91? Age?Since?First?Used?
- 14. ´¡±è±è±ô¾±³¦²¹±á´Ç²Ô²õ?µþ²â?°ä²¹³Ù±ð²µ´Ç°ù²â?©\?±«²õ²¹²µ±ð?°¿±¹±ð°ù?°Õ¾±³¾±ð? 30.0%? Entertainment? Users?Returning?(%?of?Day?0)? Games? 25.0%? Sports? Lifestyle? 20.0%? UUliUes? 15.0%? 10.0%? 5.0%? 0.0%? 1? 4? 7? 19? 25? 28? 31? 37? 49? 55? 58? 61? 67? 79? 85? 88? 91? 97? 100? 10? 13? 16? 22? 34? 40? 43? 46? 52? 64? 70? 73? 76? 82? 94? Days?Since?First?Use?
- 15. In?other?words¡? ?? Users?stop?using?the?average?applicaUons? prely?quickly.??Long©\term?audiences?are? generally?1%?of?total?downloads.? ?? Paid?applicaUons?generally?retain?their?users? longer?than?free?applicaUons,?although?the? drop©\o??is?sUll?prely?steep.? ?? Sports?seems?beler?at?retaining?users?over? the?short?term;?entertainment?at?retaining? users?over?the?long?term.???
- 16. How?long?are?they?using?it??? ?? For?certain?applicaUons,?the?length?of?Ume? users?use?the?applicaUon?is?important.?? ?? Branded?applicaUons?care?deeply?about? engagement.? ?? ApplicaUons?showing?ads?periodically?also?care? about?session?length,?for?obvious?reasons.? ?? In?general,?every?second?the?app¡¯s?open?is?a? second?it?can?be?seen?by?or?recommended?to? others.???
- 20. So?should?I?give?it?away?or?not?? ?? Anyone?browsing?the?top?free?applicaUons? knows?that?adverUsing?is?an?opUon.? ?? The?biggest?player?is?AdMob,?but?Pinch?Media? has?some?partnerships?with?ad?networks?that? supply?some?of?these?ads.?? ?? However¡?I?used?to?be?much?more? enthusiasUc?about?adverUsing?than?I?am?today.?? Here¡¯s?why:?
- 21. Total?ApplicaHon?Runs?Since?First?Use? 12? 10? Total?ApplicaHon?Runs? 8? 6? 4? 2? 0? 1? 11? 21? 31? 41? 51? 61? 71? 81? Days?Since?First?Use?
- 22. Average?¡®free?vs.?paid¡¯?raUos:? ?? for?total?unique?users:? 7.5?to?1? ?? for?total?number?of?Umes?used:? 6.6?to?1? ?? for?total?Ume?spent?using?the?applicaUon:? 3.9?to?1???
- 23. ExtrapolaUng¡? ?? Assume?free?applicaUons?are?run,?at?most,?a? dozen?Umes?per?user.? ?? We?see?free?applicaUons?run,?on?average,?6.6? Umes?as?oaen?as?paid?applicaUons.? ?? A?paid?applicaUon?returns?at?least?$0.70?/?user.? ?? Doing?the?math?¨C?12?x?6.6?=?80?sessions.? ?? Can?the?average?applica/on?make?more?than? $0.70?o??adver/sing?in?80?sessions?????
- 24. Answer:?Hell?no.? Earning?$0.70?in?80?sessions?requires?revenue?of? $8.75?per?thousand?runs.? If?you?can?show?one?ad?per?session,?that¡¯s?an? $8.75?CPM.? Right?now,?with?the?ad?market?how?it?is,? adverUsing?rates?of?$0.50©\$2.00?CPM?are? much?more?typical.? The?typical?applicaUon?would?have?to?bombard? its?users?with?ads?to?beat?the?money?it¡¯d?make? from?paid?sales.?????
- 25. But?adverUsing?isn¡¯t?always?a?bad?idea.?? ?? Some?applicaUons?bene?t?from?network? e?ects,?and?get?far?more?than?6.6x?the?users? they¡¯d?get?if?they?charged.? ?? Some?applicaUons?are?excepUonally?¡®sUcky¡¯?¨C? users?use?the?app?far?more?than?average.? ?? Some?applicaUons?¨C?generally,?ones?catering? to?people?with?money?¨C?can?command?beler? adverUsing?rates?than?usual.??
- 26. CumulaHve?ApplicaHon?Runs?Since?First?Use,?By?Decile? 45? 40? 35? 30? ApplicaHon?Runs? 25? 20? 15? 10? 5? 0? 1? 6? 11? 16? 21? 26? 31? 36? 41? 46? 51? 56? 61? 66? 71? 76? 81? 86? 91? 96? Days?Since?First?Used?
- 27. CumulaHve?ApplicaHon?Runs?Since?First?Use,?By?Decile? CPM? 45? <?$2.00? 40? 35? 30? ApplicaHon?Runs? 25? 20? 15? ~?$7.00? 10? ~?$15.00? 5? ~?$35.00? 0? 1? 6? 11? 16? 21? 26? 31? 36? 41? 46? 51? 56? 61? 66? 71? 76? 81? 86? 91? 96? Days?Since?First?Used?
- 28. To?sum?up¡? ?? Only?a?few?(<5%)?high©\performing?applicaUons? are?suitable?for?adverUsing?right?now,?and?you? don¡¯t?know?if?you¡¯ve?got?one?unUl?aaer?launch.?? ?? In?other?words?©\?unless?there¡¯s?something? inherent?about?the?app?that?screams?free,?sell?it.? ?? Install?analyUcs?in?your?applicaUon?and?watch? your?sessions?per?user?over?Ume.??Within?a?few? weeks,?you¡¯ll?know?if?you¡¯ve?got?a?sUcky? applicaUon.? ?? Only?release?an?ad©\supported?version?when?you? have?data?strongly?indicaUng?success.?
- 31. Again,?summing?up?©\? ?? Usage?Ume?declines?by?almost?a?third?in?the? ?rst?month?aaer?use,?stabilizing?at?just?under? ?ve?minutes.?? ?? Paid?applicaUons?see?slightly?more?use?soon? aaer?installaUon,?and?are?used?for?slightly? longer?periods.? ?? The?biggest?usage?di?erenUator?is?category?¨C? games?are?used?for?longer?periods?than?any? other?type?of?applicaUon.?
- 32. This?was?actually?a?sneak?preview? ?? AppStore©\wide?reports?are?being?generated? daily?and?will?be?incorporated?into?Pinch? Media¡¯s?reporUng?site?in?the?near?future.? ?? Any?applicaUon?using?our?analyUcs?library?and? acUvely?sending?in?data?gets?access?to?all? ecosystem©\wide?reporUng?for?free.?? ?? Pinch?Media?wants?to?know?what?else?you? want?baked?into?this?reporUng.?
- 33. QuesUons?? You?can?always?reach?me?at:? greg@pinchmedia.com? 646©\330©\8540? If?you¡¯ve?got?a?technical?quesUon,?? support@pinchmedia.com?goes?to?the? enUre?company.? You?can?see?a?demo?at?demo.pinchmedia.com,?or? just?get?started?at?developer.pinchmedia.com.?