 |
   |
Visit min's sister site:  |
|
|
|
THE MONEY SHOTDiscounting Works in App StoresSaturday, February 11, 2012 Price matters with consumers when it comes to apps, even though many are already priced to move.  According to app analytics company Distimo’s recent survey of price points affecting sales in iOS and Android stores, the average revenue for a top 100 grossing iPhone app was increased 41% on the first day of its sale and 22% across the full span of the sale period. For iPad apps, revenue rose even more dramatically, 52% on day one and 19% for the full span of the sale. In the Google Android Market the initial effect of price decreases is much more muted at the front end, increasing revenues only 7% on the first day, but more noticeable overall, increasing sales 29% over the longer haul. This is not to say that discounting is a sure thing. In fact, Distimo’s overall figures are averages that reflect select success stories. Overall, 30% to 50% of apps on sale actually saw revenue decreases even though the full group of sale items across the stores rose. Distimo explains that a successful discounting strategy that increases volume enough to compensate for the lower price, usually involves a steep cut. They find that the optimum discount was 50% or placing an app into one of the two lowest price points, 99-cents or $1.99. Popularity breeds success in discounting. The titles already in the top 100 most popular apps enjoyed greater organic visibility for their sales. For iPad, a sale could typically increase an app rank 27 steps up the ladder, 42 for Android and 15 for iPhone. Magazine publishers need to remain aware that Distimo’s figures reflect buying habits across content categories, and are likely heavily influenced by games, which occupy all ten slots in its list of top grossing apps for December. Anecdotally, magazines tell us that some discounted or free incentive in a magazine app is most effective in generating digital edition sales. Future UK, for instance, was quick to populate the iOS Newsstand when Apple introduced the new subscription-only section to iPhone and iPad users this fall. Each of its titles offered downloaders a free back issue as a complete sample of their digital edition work. The company saw a strong uptick in its iOS subscriptions as a result. While the arrival of a reasonably priced subscription model to the App Store seems to have relieved some consumer backlash against per-issue pricing, most users continue to resent what feels like a bait-and-switch: downloading a “free” digital magazine shell app that offers no content whatsoever without an additional charge. Publishers have to learn to give something away or offer a heavily discounted first issue if they want to satisfy readers' curiosity. More Money Shot Stories
Cashing In On Tablets: The T-Commerce Effect Monday, January 23, 2012 As we report in min this week, retailers and marketers are catching on to the fact that tablet’s are among the best devices we have seen yet for more Who Is Making Money at Apple’s iPad Newsstand? Wednesday, January 11, 2012 Now that the app-happy holiday season has ended, it is a good time to take stock at the Apple App Store and see what media brands are selling well. Reportedly, Christmas Day is App Day in... more Spin, Conde and O Make Apple’s Rewind List Wednesday, December 14, 2011 Among the apps that have been nicer than naughty this year, a number of magazine publishers appeared on Apple’s annual Rewind list of favorite apps. Now that the number of mobile apps... more iMonitor Shows iOS Newsstand has 8.1% of Mag Apps, Boosts Sales Friday, November 4, 2011 The recent addition of a dedicated Newsstand area and supporting technologies on the iOS 5 operating system have had a dramatic effect on revenue for magazines. According to McPheters &... more Video Ad Spend to See Double-Digit Growth in 2012 Thursday, October 27, 2011 For some brands and agencies, video advertising is the branding opportunity online that banners always promised to be. Even as the display market continues to expand, video is the real driver of digital marketing spend. A new survey of agencies, marketers and online decision makers shows that that... more |
App Central min's App Central (for min subscribers only): Stay on top of mobile app developments with exclusive app reviews, analysis and data. 
Please enter the following information to have a link to The Skinny emailed to your iPhone:
White Papers
min Contests
EventsBest of the Web, April 3, 2012 min's Sales Executive of the Year Awards min Press
 Events Calendar
min's Best of the Web Awards |
.jpg)
Internet Sales Guidebook| Copyright © 2012 Access Intelligence, LLC. All rights reserved. Reproduction in whole or in part in any form or medium without express written permission of Access Intelligence, LLC is prohibited. For more details please see Terms and Conditions. |
