App-y New Year

The rise of apps as a significant revenue source continued in 2011, and seems headed for even more explosive growth this year.  The App Annie blog highlights 7 key trends in a creative new inforgraphic, Rise of the Planet of the Apps.

1. East Asia - Land of the Rising Downloads - 2011 saw almost a three-fold increase in app downloads in China, and a 187% increase in app revenue.  In Japan, downloads doubled in number, with an 88% increase in revenues.  Look for international publishers to raise their game in understanding localization
2. Norway - Planet of big money downloads.  Norway leads in generating an average of $0.37 per download (vs. average $.04 per app in China).  With only a loose correlation between GDP per capita and revenues per app, one needs to look at other factors, like smartphone penetration and local currency support.
3. Biggest prize money in the US (and Japan).  The top-grossing app in the US hauls in 10x the revenue of China's top app.  On the other hand, the top grosser in Japan brings in revenues close to (90% of) the US top grosser, despite having only 1/6 the number of smartphone users.
4. In-App Purchase (IAP) revenues skyrocket.  At the start of the year, the top apps with IAP and those without were generating roughly the same revenues.  By the end of the year, apps with IAP were monetizing more than twice as much
5. Taking Flight - Growth of iPad downloads.  Downloads for iPads grew 200% in 2011, compared to 70% for iPhones.  Data suggests both notebook and smartphone users will convert to tablets.
6. iPad - A significant slice of the iOS pie -  Revenues on iOS platforms currently split 30% for iPad, and 70% combined for iPhone and iTouch.
7. iPad - double the dollar sunshine.  The iPad has a bit more than twice the number of pixels as the iPhone, but is generating an average of 2.4x more revenue per download.  This suggests that there may be differences in how the two devices are used, and/or a willingness to purchase more expensive downloads for tablet use.  It also suggests app design and development should go beyond scaling up image resolutions.

The rise of the digital network and the growth of new media forms and formats have left many traditional media outlets searching for new revenues, new ways of monetizing the content and/or services they provide to audiences.  There appears to be a significant and growing market in apps for mobile devices - a market that can be entered relatively easily and cheaply.  It may not work for all media outlets, or replace lost revenues entirely, but the app market certainly seems to be worth exploring.

Source -  Infographic: The Rise of the Planet of the Apps,  AppAnnie.com