Comments on: App Developers Making $8,000 A Year http://www.socialtimes.com/2008/06/app-developers-making-8000-a-year/ The Social Times covers news, analysis and insight pertaining to the social web. Learn how to brand yourself and your company via the social web. Wed, 07 Jan 2009 19:54:19 +0000 http://wordpress.org/?v=2.5 By: Tom http://www.socialtimes.com/2008/06/app-developers-making-8000-a-year/#comment-3626 Tom Fri, 20 Jun 2008 14:06:31 +0000 http://www.socialtimes.com/?p=577#comment-3626 What missing from this analysis is that Social Media ads are largely a closed system. That is apps advertising on other apps. Since Social Media takes a cut, for that $8 million paid out, $10 million was probably paid in by apps. Using your 1000 developers number, that averages out to negative $2,000 per developer. The average app is losing money on ads, not making money from them. What missing from this analysis is that Social Media ads are largely a closed system. That is apps advertising on other apps. Since Social Media takes a cut, for that $8 million paid out, $10 million was probably paid in by apps. Using your 1000 developers number, that averages out to negative $2,000 per developer. The average app is losing money on ads, not making money from them.

]]> By: Tom http://www.socialtimes.com/2008/06/app-developers-making-8000-a-year/#comment-4478 Tom Fri, 20 Jun 2008 14:06:31 +0000 http://www.socialtimes.com/?p=577#comment-4478 What missing from this analysis is that Social Media ads are largely a closed system. That is apps advertising on other apps. Since Social Media takes a cut, for that $8 million paid out, $10 million was probably paid in by apps. Using your 1000 developers number, that averages out to negative $2,000 per developer. The average app is losing money on ads, not making money from them. What missing from this analysis is that Social Media ads are largely a closed system. That is apps advertising on other apps. Since Social Media takes a cut, for that $8 million paid out, $10 million was probably paid in by apps. Using your 1000 developers number, that averages out to negative $2,000 per developer. The average app is losing money on ads, not making money from them.

]]> By: Craig - Hook Mobile http://www.socialtimes.com/2008/06/app-developers-making-8000-a-year/#comment-3619 Craig - Hook Mobile Fri, 20 Jun 2008 01:27:27 +0000 http://www.socialtimes.com/?p=577#comment-3619 Nick, You know where I stand on the issue, but I can't resist chiming into the discussion. These figures give further credence to the fact that app developers need to diversify their revenue streams, further if they can introduce subscription revenues they will both deepen their relationship with the end user and create reoccurring revenues. I'll be the first to tell an app developer if their content isn't appropriate for mobile, however I believe not enough app developers are asking the question to begin with. Mobile content offerings have a built in payment mechanism today. While it may not be the most attractive solution with the carriers taking a cut of every transaction, it works and is generating millions in revenues for content owners who understand how the ecosystem works. I'm in Seattle right now meeting with T-Mobile and AT&T. Both organizations are eager to see more social media companies exploring mobile opportunities. Craig Hook Mobile Nick,

You know where I stand on the issue, but I can’t resist chiming into the discussion. These figures give further credence to the fact that app developers need to diversify their revenue streams, further if they can introduce subscription revenues they will both deepen their relationship with the end user and create reoccurring revenues.

I’ll be the first to tell an app developer if their content isn’t appropriate for mobile, however I believe not enough app developers are asking the question to begin with. Mobile content offerings have a built in payment mechanism today. While it may not be the most attractive solution with the carriers taking a cut of every transaction, it works and is generating millions in revenues for content owners who understand how the ecosystem works.

I’m in Seattle right now meeting with T-Mobile and AT&T. Both organizations are eager to see more social media companies exploring mobile opportunities.

Craig
Hook Mobile

]]> By: Matt McAllister http://www.socialtimes.com/2008/06/app-developers-making-8000-a-year/#comment-3618 Matt McAllister Fri, 20 Jun 2008 01:25:32 +0000 http://www.socialtimes.com/?p=577#comment-3618 Nick -- i think you're on to something about virtual currencies and rewards programs (and not just b/c my company happens to be one of the players in that space). These systems are embedded into the user experience directly, so the ads have much more relevance to the consumer than interruptive ads such as the typical banners that other networks are running. Granted, not all apps are amenable to virtual currencies, but for those that are, the conversions and revenues are certainly impressive. But overall, I'd put the size of the revenue possibilities as at least twice the $10 million that was quoted, and that number will only grow. What do you think? Nick — i think you’re on to something about virtual currencies and rewards programs (and not just b/c my company happens to be one of the players in that space). These systems are embedded into the user experience directly, so the ads have much more relevance to the consumer than interruptive ads such as the typical banners that other networks are running. Granted, not all apps are amenable to virtual currencies, but for those that are, the conversions and revenues are certainly impressive.

But overall, I’d put the size of the revenue possibilities as at least twice the $10 million that was quoted, and that number will only grow. What do you think?

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