Thursday, July 21, 2011

Apps Bring In the Money

by Harris Cohen, The PromoGuru

You’re not likely to make any money by playing Angry Birds, but if you were to develop an app of your own, you could be raking in the bucks.

High-tech analysts Canalys found that mobile apps will accrue over $7 billion in direct revenues this year, from downloads, in-app payments and subscriptions. This figure will likely double by 2012, to just over $14 billion, and is projected to reach $36 billion by 2015, which shows an annual growth rate of almost 50 percent.


That doesn’t even take into account advertising within apps. Experts believe that figuring in returns from mobile advertising would double these appraisals.

This could bode well for mobile operators, who are trying hard to get into the app business that is largely dominated by the big guys (Apple and Google, mostly). Operators have been coming out with app stores of their own, as well as facilitating direct billing to users’ mobile bills.

However, if you crunch some numbers using Canalys’ data – working off their estimate of 463.3 million smartphones and tablets operating this year – you’ll find that the figures work down to just under $16 per device, per year. This isn’t really much compared to mobile bills that usually hover around $50 per month.

What Canalys does not tell is how these figures break down when looking at individual app categories – i.e., games, social media, tools, etc. So embark wisely! What’s your money-making app idea?

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