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BREAKING NEWS & VIEWS
How Much Is That iPhone App Worth?Thursday, December 10, 2009 The BlackBerry may be functional. Android may be on the rise. But when it comes to sheer popularity and overall coolness, the Apple iPhone remains the bright, shiny object that continues to attract both brands and publishers. “Get me an iPhone app” is the mantra heard at every mobile marketing agency every day. The magazines are rushing in this season with scores of apps: from Brides to Runner’s World, a roundup of Maxim magazine’s Hometown Hotties to an aggregation of b2b publisher PennWell’s energy titles. But what is that iPhone app really worth to a publisher? In the recent min webinar, “Tapping the Buy Button: How to Generate E-Commerce for Your Media Brand,” mobile developer and CEO of NearbyNow Scott Dunlap outlined the current range of income publishers could expect from the various models. The paid app model allows publishers to sell their app outright to users for a one-time fee. In these cases, Dunlap says he has seen the income range from a low of $15,000 to over $6 million. The hard truth of the matter is that “the closer to soft porn” the app gets the more money a publisher can make from direct fees in the app store, he says. Bikini models sell well and magazines like Sports Illustrated, Maxim and others are well positioned to leverage their images here. If you don’t have a little flesh to sell, however, the free, ad-supported apps are already producing a revenue stream of between $5,000 and $50,000 a month for publishers. Mobile ad networks like AdMob (recently acquired by Google), Millennial Media and Quattro Wireless are all major suppliers of in-app ad networks and serving. According to application ad serving company AdWhirl, an ad-supported app that cracks the top 100 can garner CPMs of up to $8.75 and serve three or more ad impressions per session. This can translate to $400 to $5,000 a day in revenue. There is some dispute among app developers over the true and typical CPMs now being generated by most apps, however. Many developers see effective CPMs more in the 50 cents to $2 range. A final category of iPhone app revenue is the sponsored app, in which a single sponsor underwrites the development and deployment of a magazine-branded app that goes free to users. Dunlap says in his experience these apps generate between $20,000 and $40,000 each for their publishers. The complete 90-minute webinar “Tapping the Buy Button” is available on demand. If you have breaking news to share please contact Steve Smith at ssmith@accessintel.com
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