research is showing the drop off rate in app usage continues to be high, with the complexity of getting visibility getting even larger as more apps are added to the store. An interesting analysis by pinch media (presentation below) is that due to the low reuse of apps, very few of them ever make any money from advertising as they would need a eCPM of $7.85 based on an average number of uses and CTR – which means you might as well just charge for your app. obviously this is an average and your app wont be like that 🙂
what is interesting too is that revenues from virtual goods are growing and eclipsing advertising as a revenue source, so this may become another income stream for mobile apps (like affiliates online).
also, the rapid growth of android is something to keep in mind, see the article below the presentation for some more insight into the topic.
Usually, if companies generally do not release uptake figures – it is because they are rather disappointing. We all hear about it when usage figures are great as the companies are ramming it down your throat. In these circumstances silence speaks louder than words. Please do feel free to inform TMV of any music subscription based mobile applications that have sold more than 1 million mobile applications?
Another way of measuring ROI is the level of consumer interaction a mobile application brings to its users. It can help to increase satisfaction with your product or service, prevent churn and drive consumer loyalty. In TMV’s view this is where the real value lies in mobile applications. Although a generalisation, most uptake and regular usage occurs in free apps that have a utility emphasis in terms of everyday work environments, like dropbox, a weather application or the like.
In reference to music and artists, using a mobile application to drive pre-sale activity and creating a social element within a mobile application is a dynamic method of keeping application users interested and coming back to regularly use your application. Obviously, this does necessitate actual artist interaction and it does not have to be much, 5 – 10 minutes a day.
Apart from T-pain, placing a cost on downloading your artist app for fans is only going to result in limited uptake. Make it free with dynamic features and analyse the usage patterns of your fans to attain a better perspective on marketing to give them what they actually want. Ensure any marketing campaign engages across all platforms.
DO NOT place all you apples in one basket (pun intended). On most recent figures android handsets are outselling iPhones in Australia at 2.5:1, in the UK it’s around 2:1 and in the US we have unconfirmed reports that android handsets are outselling iPhone at a ratio of 2.3:1 (all of these figures have been given in direct communication with operators and handset manufacturers in each of the aforementioned territories). Ensuring, your application is cross platform is of paramount importance, as it will mitigate any potential fan backlash.