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April 02, 2013
Backend-as-a-Service Economics

There are a wide variety of products that can be considered Backend-as-a-Service (BaaS) offerings. At the time of writing we list 43 of them on our sector summary page. We have previously discussed whether or not they’re a good idea and how much development effort you could save by using one. In our most recent survey we asked developers about their use of some of the most popular options. By comparing developers’ use of BaaS with their average revenues and active user bases, we can determine how well these products are working for them.

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March 25, 2013
How to Optimise Ad Revenue

On the surface, advertising seems like a fairly simple and easy to implement business model for an app. Decide on some places to display ads, integrate one or more third party ad services and wait for the money to start rolling in. If you do this without a clear plan for how and why users will interact with ads in your app you’ll probably find the revenue disappointing. Optimise revenue by growing your user base, increasing engagement…

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March 18, 2013
Why Measurement Matters – the case for analytics

Creating a successful app business takes a lot more than a good idea and the skills to develop an app and upload it to a store. As we’ve discussed before, developers who promote their apps are almost 3 times as likely to break-even as those who don’t. This is the simplest difference with a massive effect on success. It seems obvious…

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March 15, 2013
Kids’ Educational Apps – An Indie Dev’s Final Frontier

[Geroge Karavias, co-founder of Anlock, shares his experiences in marketing kids’ educational apps and proposes a survivor kit to keep in mind when navigating the treacherous waters of this category.] You might have started thinking that putting together an educational app may not be such a bad idea, I mean how hard can it be? Of the App Store’s top 200 paid list of iPad educational apps, 70% are kids’ educational apps. Out of these, roughly 80% are by independent developers…

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March 08, 2013
A/B Testing on the Amazon Appstore

In December Amazon launched a new A/B testing service for Android apps on the Amazon Appstore. Integrating A/B testing, particularly for in-app purchase related events, in the store portal is a welcome addition. Slightly disappointing considering this comes from a store provider is that the A/B testing service does not support testing different copy or icons on the storefront itself, purely in-app A/B tests, for which there are already third-party alternatives.

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March 01, 2013
Developer Story: Lyft

Sebastian Brannstrom, Lead Engineer for Lyft at Zimride, talked to us about their app and the business that the technology enables. Sebastian has been working in mobile software since 2006, initially on Symbian and then transitioning to iOS, Android & Web by way of a side project, created in collaboration with designer and product manager […]

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March 01, 2013
How Much Is An Active User Worth?

App store analytics providers have been telling us that almost all of the growth in app revenues in the last year has been through in-app purchases. However is that just because the model has become more popular? Or because revenue has been concentrating at the top of the market, where the strategy is very popular (particularly in free-to-play games)? Probably…

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February 28, 2013
Revenue Haves and Have Nots

While not all developers are in it for the money, most would like their apps to provide an income and the majority of those struggle to earn revenues that will sustain further development. We defined $500 per app per month as a reasonable global “poverty line”, in some countries this is very low while in […]

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February 22, 2013
How Many Users Is Realistic?

One of the most common mistakes developers make when planning the business case for a new app is dramatically overestimating the number of users they will be able to attract, particularly for their first app. The typical argument goes something like this: “My app will be compatible with 400 million devices, if I can reach just 1% of those, that’s 4 million users”. The trap here is…

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February 21, 2013
Tablets go mainstream, TV apps still niche

In our latest developer survey we asked developers about the different screens they target. The results show smartphones are the most popular target, whilst tablets are catching up fast. PCs are most commonly targeted by web developers while TVs are still a niche app market for all developers.

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