The Loadown was featured in a piece by Alex Konrad that appeared on forbes.com yesterday: ‘How Amazon-Style Pricing And Portfolio Tactics Can Hack The Crowded App Market.’ The article included insights on the role of pricing optimization and portfolio diversification in app discovery.
Here are some highlights:
– … for those who aren’t a Top 10 viral hit or willing to spend millions on marketing like Game Of War’s pricey Kate Upton campaign, regular price adjustments can help surface an app back from the purgatory of the App Store’s (figurative) back shelves.
– The most room to maneuver and benefit comes with apps that are priced more than $0.99 and thus have more potential to discount or boost prices incrementally. But even switching apps from periods of free sales to paid stretches can improve performance, the Loadown team says.
– In a 39-week study of about 7,6000 apps from 4,000 sellers, sellers expanding into a new category instead of launching their first app saw a 15% bump on top-grossing charts for each additional category they entered. (study by Arizona State University’s W.P. Carey School of Business)
For more information about our dynamic app pricing optimization service, to start a free pilot for your apps and get significant increases in both downloads and revenue, contact us at email@example.com.
In our quest to better understand App Store dynamics, especially when it pertains to paid apps vs free apps, we decided to analyze how much app turnover there was in Apple’s iPhone and iPad Top 400 lists (now Top 200 lists). We looked at how many apps entered (and thus exited) the Top 400 Free, Paid and Grossing lists (by category) throughout the month of May 2014. These entries/exits are important because, as they increase, they provide an indication of which business model (i.e. paid or free) or genre/category offers the best opportunity for discovery.
The two graphs below show, for May 2014, the number of iPhone and iPad apps that entered the Top 400 Free, Paid and Grossing ranks but that had not been ranked the previous day. For both iPhone and iPad apps, generally more than three quarters of Top 400 Paid and Top 400 Grossing apps remained ranked from one day to the next. For iPhone apps, the daily turnover in the Top 400 Paid list and in the Top 400 Grossing list (for both paid and free apps) was more than double that of the Top 400 Free list. For iPad apps it was nearly double, with free apps having an average of 51 new entrants a day in the Top 400 Free compared to an average of 35 new entrants a day for iPhone apps, a 46% difference.
Does this mean that a Paid app has a better chance of getting ranked and potentially getting discovered? About 1 out of every 8 apps is a paid app and therefore it is clearly easier for a paid app to get ranked. But the fact that there is more active turnover in the Top 400 for paid apps (and for paid or free Top Grossing apps) makes the competition for Top Paid and Grossing ranks far more open than for Top Free ranks.
We still believe that #PaidAppsRule
According to new market data we released, 21% of all apps currently in Apple iTunes are priced at $0.99 while 58% are free to download. We also found that in April 2013, iOS apps in Education, Entertainment, Games, Lifestyle, and Utilities genres represented nearly 57% of new apps launched.
Our US market update highlights the variation in price distribution among the 23 primary thematic categories in iOS (See Graph 1: iOS Mobile App Pricing by Genre as of April 2013).
Most categories have a majority of free apps with some having very little paid apps, such as Newsstand with only 3% paid apps. There are notable exceptions to this bias including:
- Book genre with 73% paid apps and an average price of $3.53
- Reference genre with 58% paid apps and an average price of $2.65
- Education genre with 58% paid apps and an average price of $2.44
- Games genre with 34% of apps priced at $0.99, 51% paid apps and an average price of $1.08
Another finding from our market data highlights the continued vibrancy of the iOS mobile app marketplace. In April 2013, Games led all genres with over 16k new apps (See Graph 2: New iOS Mobile Apps Launched by Genre in April 2013). This represents nearly 22% of all new apps launched last month.