app+dev+webinar+1+2

A demographic and business

woensdag 12 december 2012(Wk)

Today’s Agenda

• Introductions• A Message about the Application

Developers Alliance• Who are today’s app developers?• Where do they work?• Platform preferences• Monetization• Q&A


Introduction

• App developers cornerstone of multi-billion dollar app market

• Very little research on this market segment• Study based on an Internet survey of app

developers– 352 survey completes– Survey finished in July 2012


Introductions

• Moderator: – Michael Wolf – GigaOM Pro, Founder

of NextMarket Insights (@michaelwolf)• Panelists:

– Amy Cravens, GigaOM Pro Analyst– Jake Ward, Application Developers

Alliance (@Jacobmward)


Who Are App Developers?

Demographics


Male dominated industry


Not as young as stereotype portrays

Not a market of teen developers—only 3% of respondents are 17 or

younger

60% of respondents are

30+ yrs.


Highly Educated

87% have at least some college educa@on

1/3 of app developers have done graduate

work


The modern app developer

• Is the male dominance of the profession a surprise?

• How can the industry attract more women?

• Many app developers are mid-career. Is app development a new stop in a career path for veteran software developers?


Where do they work?

Work Environment


Many are market “veterans”

38% of respondents have been developing mobile apps for over 2 years


A “one man shop” market…


Many developers wearing multiple hats

Nearly 2/3 of respondents do something other

than app development


App Developer Shops: Lots of One-Man Shops

• Many app developers are one-man shops. Has app opportunity resulted in the “moonlighter” generation in software development?

• Roughly one in five firms are 10 people are more. Does success breed success in app development?


What are they developing?

Development Preferences


Device Preferences

TV app market s@ll nascent

Nearly all respondents

developing mobile apps


Leading app categories


Platform Preferences

iOS s@ll dominates

Android gaining ground

Growth in HTML5


Platform Trends

• Android is gaining ground– Growth in Android apps development will outpace iOS,

narrowing the gap– Android continues to face challenges: fragmentation and

developer friendly experience• Further concentration among top 4 phone platforms

– App development for top operating systems will increase – and so will competition

• Growth in HTML5– Developers are frustrated with lack of cross-platform

development tools and with restrictions of app stores—looking for alternatives to native apps


Platform Preferences

• Will iOS always be the dominant platform preference?

• TV app development has been a wasteland over past decade due to lack of standards, carrier ineptitude, etc. Will that change with new platforms?


How to make money?

MonetizationTrends


Ads Model Under Utilized

Surprisingly, only 25 percent of phone app developers and 18

percent of tablet app developers are incorpora@ng

ads in their applica@ons


Ad Performance Metrics

• Ad impressions– Majority of respondents had fewer than 6,000

impressions per day– The average number of ad impressions is around

12,000 per day– Ad impressions higher for mobile phones than tablets

• Ad revenues– 1/3+ of developers earn less than $100 per month

from ad revenues– Average revenue per month is ~$1900 for phone aps

and ~$1250 for tablet apps


Paid Apps More Ubiquitous

Over half of mobile and tablet app

developers incorporate payment opportuni@es


Low Margin, High Volume

Most developers price apps under

$1.99

Tablet apps tend to be

priced higher


Correlation between paid apps and other strategy factors

• More experienced developers• Higher usage rate among

independent developers• Significantly higher use of paid apps

on iOS vs Android• Paid app developers highly focused

on gaming apps


Making Money with Apps

• Many app developers don’t make money. Is discovery the biggest challenge?

• Are there newer monetization models to explore outside of basic ad/freemium/paid model?– Subscriptions?– Enterprise?


Q&A


app+dev+webinar+1+2

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