recommended reading

If You Want to Make Money From Apps, Forget About the App Store

Sergey Nivens/Shutterstock.com

Considering the number of free apps that clutter the world’s many app stores and the pittance paid by mobile advertising networks to app developers, it was only natural that app makers would find other ways to make money from creating mobile software. A recent report by VisionMobile, a London-based research firm that looks specifically at developers, puts into numbers just how much developers earn in other ways—which is to say, a lot. Taken together, app stores sales and advertising together count for less than a quarter of all revenues for developers.

Only 11% of apps are paid for, a number that will decline to 7% by 2016 as more and more people in the developing world start using smartphones. Including things like in-app purchases, app-store subscriptions and normal fees to download an app, app store revenues across platforms brought in $8 billion globally. Advertising contributed another $3.8 billion. That is 15% and 7% of the $53 billion that the report calculates as the total value of apps to the global economy in 2012.

The rest of it comes from sources such as e-commerce licensing and commissioned app-making. The largest of these is app-making on contract. Just as building software for businesses made the fortunes of several older tech firms such as Oracle and SalesForce, making custom apps and maintaining them is far more lucrative for developers than appealing to frugal consumers. At $30.2 billion, commissioned apps account for 56% of revenues earned by developers worldwide, more than double what they made from app stores and ads.

Read more at Quartz

(Image via Sergey Nivens/Shutterstock.com)

Threatwatch Alert

Thousands of cyber attacks occur each day

See the latest threats

JOIN THE DISCUSSION

Close [ x ] More from Nextgov
 
 

Thank you for subscribing to newsletters from Nextgov.com.
We think these reports might interest you:

  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

    Download
  • PIV- I And Multifactor Authentication: The Best Defense for Federal Government Contractors

    This white paper explores NIST SP 800-171 and why compliance is critical to federal government contractors, especially those that work with the Department of Defense, as well as how leveraging PIV-I credentialing with multifactor authentication can be used as a defense against cyberattacks

    Download
  • Toward A More Innovative Government

    This research study aims to understand how state and local leaders regard their agency’s innovation efforts and what they are doing to overcome the challenges they face in successfully implementing these efforts.

    Download
  • From Volume to Value: UK’s NHS Digital Provides U.S. Healthcare Agencies A Roadmap For Value-Based Payment Models

    The U.S. healthcare industry is rapidly moving away from traditional fee-for-service models and towards value-based purchasing that reimburses physicians for quality of care in place of frequency of care.

    Download
  • GBC Flash Poll: Is Your Agency Safe?

    Federal leaders weigh in on the state of information security

    Download
  • Data-Centric Security vs. Database-Level Security

    Database-level encryption had its origins in the 1990s and early 2000s in response to very basic risks which largely revolved around the theft of servers, backup tapes and other physical-layer assets. As noted in Verizon’s 2014, Data Breach Investigations Report (DBIR)1, threats today are far more advanced and dangerous.

    Download

When you download a report, your information may be shared with the underwriters of that document.