Millennial Media Announces ‘Healthy’ State of the Apps
If you were to ask Dong Nguyen about the State of the App Economy, I would imagine he would give a very positive report. And why wouldn’t he? On iOS, his company dotGears currently owns the three of the top 5 Free Apps in the Apple Appstore – along with the #1 app in Google Play. Those of you that have played Flappy Bird may wonder what his secret is. With a high score of 7, I have been scratching my head all weekend. Regardless, Dong must be feeling pretty good right now. As it turns out, so too are the hundreds of other developers that responded to the Millennial Media State of the Apps report.
Based on a recent Millennial Media survey, developers are creating more apps than ever, and the ones they’re building are more versatile. Sixty percent of those surveyed planned to publish five or more apps in 2014, up from 36% in 2013. Seventy-four percent of developers build universal apps that can run on smartphones or tablets. Conversely, developers tend to stay within their chosen category when it comes to the types of apps that they create. Games developers predictably don’t want to create news apps, and developers with a focus on music don’t suddenly switch to making productivity tools. Let’s just say folks ‘stick to the knitting’.
Where are all these highly productive developers, you ask? Forty-one percent are located in the Americas, 30% in EMEA, and 28% in APAC. Of course, the beauty of mobile media is that impressions (and profits) aren’t tied to an individual developer’s location. For example, EMEA developers get 45% of their impressions from the Americas, which is only a shade more than the 47% of impressions that come from their own region.
Speaking of profits: 83% of developers were monetizing their apps in 2013. Most make their money from advertising (73%), followed by paid downloads (43%). Of the 17% who had yet to monetize their apps, 46% reported that they expected to do so in 2014. Developers were bullish for 2014 as well, especially on ads – more than half of those surveyed expected to see their percentage of revenue from in-app advertising rise in the coming year.
One of the most noticeable changes from past years is the spike in Android development. In Millennial Media’s 2010 State of the Apps survey, only 23% of developers were publishing for Android OS. Looking at 2013 responses, that number has more than tripled to 80%. iOS is the second most popular operating system, and 78% of iOS developers plan to develop for Android in 2014.
It has never been a better time to be in the App Economy: a healthy ecosystem running on multiple operating systems. More than ever, advertisers are seeking out mobile customers to get their marketing messages delivered – and the end result is that developers have a healthy business model so they can continue to do what they love to do. I remain very excited about what the App Economy will bring us in 2014. Back to Flappy Bird…now, if I could only get past that 7th pipe!
Check out the full Millennial Media State of the Apps report here: http://www.millennialmedia.com/mobile-intelligence/special-reports/.
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Millennial Media is the leading mobile ad marketplace, making mobile simple for the world’s top brands, app developers, and mobile web publishers. The company's data and technology assets enable advertisers to connect with target audiences at scale, while driving monetization for publisher and developer partners. AOL acquired Millennial Media on October 23, 2015. Millennial Media boosts AOL's global, mobile capabilities and scale across ONE by AOL for advertisers and agencies, and offers the most attractive monetization platform for app developers.