The app store is loaded with more than 140,000 apps, the consumer has a universe filled with diverse apps to choose from and this number increases by hundreds each day.
There are some absolutely mind boggling apps that have changed the way we work and which have redefined our entertainment. But there is some dead wood too and those are apps that have lost value and popularity over the years. The boom in this market is so big that every marketer is now forced to think how he can use this new weapon to boost his own business.
iPhone Applications that drive brand are mostly free because they target wider audience. The objective is basically to increase brand awareness, promotion and word of mouth marketing. iPhone app developers are looking for opportunities to make profitable apps. Every app should have a clear purpose defined. It should be helping the cause. If it’s entertainment, it should provide hours and hours of fun filled amusement to the user. If it’s made for some business, it should help take the business towards prosperity. Otherwise the app takes a dead path.
Business driven apps are mostly free because their purpose is to promote that business and to reach out to the mass market. The objective of these apps is to promote the business, increase brand awareness and do some solid direct marketing.
Revenue can be driven directly by the application, or indirectly by multi-channel combination with retail and stores. Direct revenue is made by the application where as indirect revenue usually aims to drive users to stores, retails or somehow provide users reasons to purchase the application. And the dimension of these objectives is always in dollars.
Straight revenue can be generated from advertising or downloads, and both have different tactics.
Revenue from advertising is similar to brand-driven applications: means to target certain aims to reach as many users as possible by providing benefits with respect to entertainment or utilities, in addition, to collect revenue from third party advertising.
However, downloading revenue can be more complex when it comes to pricing strategy. The most popular paid applications are priced between $0.99 and $3.99. These applications are what we call the “big-fast sales.”
Most users download them and use them once or twice; they’re largely entertainment and provide small value to the consumer, but the mass download provides great initial revenue and then stops. The most grossing applications are actually priced between $4.99 and $9.99 at 44% and account for 44% of revenue. These applications are downloaded less frequently, but used more often as they usually provide substantial value.
Social Jitney is more than a iPhone application development house, understands the entire process required to field a new mobile application and expertly manage the whole development process.