App Store market tactics

Analysis of trends reveals the dynamics of how and why iPhone applications sell, claims Pinch Media. The advertising firm notes for instance that popularity feeds popularity, as appearing in a top 100 list increases new users by 2.3 times, on average. The jump is said to be even more dramatic once in the top 10 or 25 apps of a particular category, though Pinch warns that the App Store is structured for rapid turnover.

The lists represent downloads calculated over 24 hours for instance, giving a developer looking to take advantage of sudden popularity little time in which to operate. Price cuts must be especially well-timed, and used to spur an app with low interest and results, rather than one which is already well-established or growing aggressively. A typical price cut is said to grow demand by 130 percent however, while a price hike may slash demand to just 25 percent.

Barriers for entry into rankings have also risen, as even a free app must achieve at least 20,000 downloads to enter the top 25. Most apps further suffer from low long-term interest, losing much of their usage within a matter of days; this makes free ad-supported software especially difficult to profit from, unless it proves especially resilient and/or gains a high number of users. Targeting a wealthy audience is also said to generate results, but Pinch argues that unless an app has proven popularity, it is generally safer to rely on an up-front fee than advertising.

by MacNN Staff