Flurry Analytics recently released some fascinating stats about the distribution of wealth for smartphone apps:
- 32% of the combined money flowing into app stores went to developers of the top 100 ranked apps.
- Smartphone applications generated a total of $5.4 billion across premium, in-app purchase and advertising revenue.
- Advertising made up 18% of the revenue in 2011.
Flurry forecasts in 2012…
- Revenue will grow by 60% over the previous year, reaching $8.7 billion.
- Advertising is the fastest growing revenue category with growth forecasted at more than 100%, from $980 million in 2011 to $2 billion in 2012, delivering 23% of 2012 total revenue.
- Premium and in-app purchase revenue is also increasing at a rate of 50%, from $4.5 billion in 2011 to $6.7 billion.
- The Top 25 ranked titles on iOS and Android will drop to commanding about half of total revenue, or 15%.
- The rest of the Top 100 apps will drop from earning 27% of revenue in 2010 to 17% of revenue.
- Each position in the top 100 is more valuable now, which makes sense because the market has grown overall.
- The middle class has more earning power, taking a substantial share of total wealth in the economy.
As more and more smartphone and tablet devices flood the market, mobile app developers at all levels will see increased profits through paid apps and mobile advertising. ReadWriteWeb author Dan Rowinski states: “With unprecedented consumer adoption of iOS and Android devices, low barriers to entry for developers and throngs of paying customers, Apple and Google have created massive economic opportunities for developers.”
Are you seeing increased revenue from your apps? Either way, we’d love to hear about it along with your thoughts on Flurry’s forecasts for 2012.