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 firstname.lastname@example.org.
Our focus on app pricing optimization and the power of price changes (see post) has led us to make an interesting discovery related to the mechanism for making price changes on iTunes: the time between a price change request and it taking effect can vary dramatically.
Using our platform to initiate price changes on iTunes, we have seen them take anywhere between 15 minutes and more than 16 hours to go around the globe and be reflected in every storefront. Price changes literally go around the world starting in Australasian and Asian storefronts, then going to the European and African storefronts, before finishing in the Americas.
In the graph below we look at the time it takes for a price change on one of our apps to take effect in the New Zealand storefront (one of the first), the France storefront and the US storefront (one of the last). In the first price change at around 14:00 (or 2PM) on the 23rd of April the app had the Tier 1 price ( corresponding to $1.99) reflected in all three storefronts within 30 minutes. This was also true for the last price change at around 6:00 on the 25th of April. But on the 23rd (and again on the 24th), the app became free at around 10:00 in New Zealand, at around 23:00 (11PM) or 13 hours later in France and at around 3:00 on the 24th in the US. It therefore took 17 hours for that price change to be reflected in all storefronts on iTunes.
So if you are making a price change on your app and expect your new price to be reflected in all iTunes storefronts immediately (within 15-30 minutes), that will not always be true. This also means that if a competitor changes their price and you are in France or the United States, for example, watching the New Zealand or Australia storefront will be the best way for you to know in advance what new price is coming to your storefront.
As we continue testing and tracking price changes on more and more apps, we will be able to provide greater insight as to when (what part of the day or what day of the week) a price change has the most chance of spreading quickly (<1hr) or very slowly (>10hrs).
We have a new white paper, “Using Version Updates and Price Changes to Improve Mobile App Discovery”, available on theloadown.com. According to US market data we collected in 2013, iOS app publishers and developers making version updates and price changes improve their positioning on iTunes’ Top Paid, Top Free and Top Grossing lists.
This is because when a paid or free app is updated to a new version, the developer can change the name, icon, description, screenshots and keywords of the app as well as force users to notice the new update. For price changes, sales get featured on an Apple RSS feed that is distributed to thousands of sites and twitter feeds focused on promoting apps that have gone on sale or have recently become free.
The Loadown’s data (see graph) indicates that free apps making version changes increased the number of days they were ranked by an average of 45% in Apple’s Top Free list and 73% in Top Grossing (19 more days), compared to apps that never updated their versions. In terms of rank, these free apps improved by about 17% in Top Paid and 21% in Top Grossing (45 rank positions).
Similarly, compared to apps that never changed their prices and never updated their versions, paid apps that did had an average increase of 36% in the number of days they were ranked in Top Paid and 96% in Top Grossing (22 more days) along with a 23% improvement in their Top Paid rank and 21% in Top Grossing (50 rank positions).
This data provides supporting evidence that active involvement by apps in their positioning on Apple’s App Store through version updates and price changes significantly improves their discoverability, downloads and sales.