Putting Apps on Sale Nets Revenue Gains for Developers

Mobile analytics vendor Distimo has released a new report which found that, on average, reducing an app’s sales price results in an overall revenue gain for the developer. Android apps that go on sale see only a 7 percent revenue boost on the first day of the sale, but a 29 percent revenue boost over the life of the sale. For iPad apps, the net was a 52 percent revenue boost on day one and a 19 percent increase overall, and iPhone apps saw a 41 percent gain on the first day and 22 percent during the entire sale. The sale price of the app made a big difference in whether or not the sale positively impacted revenue — in general, developers needed to cut the app price in half or drop it below $1.99 in order to achieve net gains.

The second half of the same report examined the impact of being featured in an app store. Apps featured on the Android Market climbed an average of 42 spots in the popularity rankings in the first three days of being featured. In the App Store, featured iPad apps climbed 27 spots and featured iPhone apps climbed 15 spots.

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