App Revenue to Hit $75 Billion by 2017
Oh, in-app purchases. How they’ve certainly changed the game. It seems now a days if anything is going to make money, it’s going to be apps. And if it’s going to be apps, then it’s going to come from in-app purchases, or advertising. Certainly that wasn’t the case a few years ago when people still purchased premium apps (apps that cost money to download).
According to Juniper Research, the result of this incredible growth is primarily attributed to the growth of apps & smartphones in many markets, but also the monetization models used by developers, and storefronts. Seeing as Blackberry is kind kind of out of the game now, Microsoft and Amazon are fighting hard for 3rd place in the App Economy while iOS and Google Play continue to dominate as 1st and 2nd.
Author of the report Siân Rowlands, had this to say:
“It is not only developers who are seeking to capitalize on their user base; many app stores are also implementing carrier billing to ensure that unbanked consumers are able to pay for apps, which will contribute to the strong growth in app downloads.”
Needless to say, the revenue generated from premium apps is expected only represent 1/4 of the total $75 billion.
Top developers have realized the best way to get the most monetization out of their apps is to combine in-app purchases with advertising.
Looking at the growth for tablets, statistics showed that the amount of app spend from tablet owners will shoot up from $7.8 billion this year to $26.6 billion in 2017 – and games, which is the most popular category of app, will take 32% of the total revenues in 2017.