Shane Cole
Despite Android's significantly larger installed base, iOS continues to dominate in monetization with a five-times-greater return rate for developers — a sign that Cupertino's market segmentation strategy is paying dividends for application creators.
For every $1.00 in app download revenue earned by iOS developers, their Android counterparts earn just $0.19, according to data compiled by Business Insider. The gap for up-front and in-app purchases is slightly narrower, with Android bringing in $0.43 for every $1.00 on iOS, while advertising revenue is the closest at $0.77 on the dollar.
The data, collated from several sources including app analytics firms Flurry and App Annie, is the latest evidence that while Android may be winning the battle for market share, Apple is winning the war for user engagement.
Apple customers use their devices more often and are more willing to pay for content.
Last month, a report from major Facebook advertising firm Nanigans said that ads on Apple's platform posted returns nearly 1,800 percent higher than the same ad running on Android. In fact, putting money into Android netted advertisers a negative return on investment, to the tune of a 10 percent loss.
"Audiences cost more on iPhone, and the reason is that it's worth it," Nanigans SVP Dan Slagen said at the time. "Typically, we're not looking to acquire one-time customers, we're looking to invest over time...so we pay more up front for better long-term results."
Time and again, studies have shown that Apple customers simply use their devices more often and are more wiling to pay for content. Web analytics firm Chitika found earlier this year that seven out of every eight internet-connected tablets was an iPad, while Flurry Analytics noted that iPhone users spend an average of 19 cents per app downloaded against just 6 cents per download for their Android counterparts.
Apps are not the only storefront where Apple dominates. The iTunes Store accounts for 67 percent of digital television purchases and 65 percent of digital movie sales, as well as 63 percent of the worldwide digital music market.
William Gallagher
Christine McKee
AppleInsider Staff
Chip Loder
Malcolm Owen
63 Comments
[quote name="AppleInsider" url="/t/160932/apples-ios-brings-developers-5x-more-revenue-per-download-than-android#post_2440553"]Despite Android's significantly larger installed base, iOS continues to dominate in monetization with a five-times-greater return rate[/quote] I thought Android phones had the highest return rate ¡
I'm guessing all those [S]millions[/S] trillions of wee Android powered TV dongles that activate as tablets and probably phones too, don't run many apps ... :D Woah ... just seen AAPL ... :smokey:
No one compares Mercedes or BMW's market shares to Toyota's. I glanced through Toyota's website the other day and counted some 25 different models. BMW may offer 10. And yet, there are places for both Toyota and BMW. Why don't everyone bash BMW? BMWs are more expensive, less reliable, have fewer choices, but the driving experience and the prestige make people feel it's a worthwhile car. When talk about cars, a BMW is compared to a Lexus. While do premium Apple phones are compared to all Android phones, ranging from $200 - $600?
I'd like someone to come up with Apple's market share in the premium phone segment, those that cost $500 and up. Sure, you can sell a lot of cheap stuffs to a lot of cheap people, but you ain't making a lot from that.
[quote name="zoffdino" url="/t/160932/apples-ios-brings-developers-5x-more-revenue-per-download-than-android#post_2440572"]No one compares Mercedes or BMW's market shares to Toyota's. I glanced through Toyota's website the other day and counted some 25 different models. BMW may offer 10. And yet, there are places for both Toyota and BMW. Why don't everyone bash BMW? BMWs are more expensive, less reliable, have fewer choices, but the driving experience and the prestige make people feel it's a worthwhile car. When talk about cars, a BMW is compared to a Lexus. While do premium Apple phones are compared to all Android phones, ranging from $200 - $600? I'd like someone to come up with Apple's market share in the premium phone segment, those that cost $500 and up. Sure, you can sell a lot of cheap stuffs to a lot of cheap people, but you ain't making a lot from that. [/quote] You are correct of course. DED wrote a great post a few weeks back on this. Statistics can be spun anyway these analysts and PR companies want and the masses eat them up as facts, Coke with low % sales versus all carbonated beverages on earth ... next to a graph of Pepsi YoY sales ... and so on ... meaningless, but shit like that seems to work. The question DED tried to answer was why do PR companies and analysts do this? My question is with Apple's money why don't they play the statics / PR game too? They would at least have truth on their side.
So developers working on both iOS and Android are using money from the iOS app to pay for development of the Android app? Because basically this story is saying it's not worth it to develop on th Android platform. It's much more profitable to develop on the iOS platform.