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- 03 JunCreating a new medial app?Check with doctors first.
- 30 MayWhy don’t pharma companies provide better content online?
- 16 May7 things pharma should no about Facebook timeline
- 18 Apr7 Top Tips to Web Usability
- 22 MarVideo Marketing is Key
- 01 MarMaking the move to timeline!
- 15 FebiPads quickly becoming professionals chosen device
- 11 JanWebinars, the way forward!
- 01 NovWhat Google’s New ‘Secure Searching’ Means For Marketers
- 27 OctFree Social Media Online Workshop
- 26 OctDoes Social Media Work for Business?
- 14 OctThe last ‘Here’s one more thing’
- 12 SepYet another reason why tablets belong in healthcare
- 27 OctFree Social Media Online Workshop
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- 01 SepImportant Facebook Security Update
- 19 AugThe Social Media Rules of Engagement for Pharma
- 20 Jul12 Social Media Tips for Pharma
- 06 JulBayer Reprimanded for Promotional Tweets
- 02 JunCan Pharma Use Twitter?
- 25 MayFacebook Force Pharma to Enable Comments
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- 11 AprHow Pharma companies can get involved in social media
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- 07 AprHow the iPad is changing the Pharma Sector
- 07 AprUK first to get Pharma Social Media Guidance
- 03 FebAre iPads the new detail aids?
- 01 NovWhat Google’s New ‘Secure Searching’ Means For Marketers
- 27 OctFree Social Media Online Workshop
- 26 OctDoes Social Media Work for Business?
- 01 SepImportant Facebook Security Update
- 11 AugLinkedIn Opt In 100 Million Users For Third Party Advertising
- 02 AugIs The App Game Market Over?
- 20 Jul12 Social Media Tips for Pharma
- 18 JulBringing Hospital Digital Wayfinding Kiosks to Ireland
- 15 JulAn Introduction to Google+
- 06 JulBayer Reprimanded for Promotional Tweets
- 03 JunTouchscreen- Where’s it all going?
- 02 JunCan Pharma Use Twitter?
- 25 MayFacebook Force Pharma to Enable Comments
- 18 MayCan Apps Diagnose Strokes or Cancer? Yes They Can!
- 28 AprCan Twitter Help Save a Life? An Inspirational Story
August 2011 | In Web | Comments 0
Is The App Game Market Over?
As we are a full service digital marketing company, app development has been increasingly important to our business. From many client meetings, we’ve come across the major question, if people want free apps how can we make money from that?
Over the past two years, we have seen the emergence of ‘Freemium’ or ‘Free to play’ apps, the app is free to download and you then you buy instalments within the app itself (in-app purchases).
This has drastically changed the revenue model of apps. According to the Distimo July report, paid app purchases fell 28% yet the revenue generated by the most successful ‘Freemium’ games increased tenfold from 8% in June 2010 to 52% in June 2011. The report attributes this to the monetisation of virtual currency within the gamers such as coins and treats. Socialnomics expects $6.5 billion dollars to be spent on virtual goods by 2013; in comparison moviegoers spend just $2.5 billion.
A report by Neilson showed that iPhones users play games approximately 14.7 hours each month, while Android users play around 9.3 hours per month. The report also showed that of those who have downloaded an app in the past 30 days, 64% had downloaded a game.
There is also the issue that social gaming is growing at a phenomenal rate, and gaming consoles are still hugly popular. John Carmack (co founder of id software) has said that its 'Unquestionable' That Mobile Will Surpass Current Consoles (although it’s likely to be 5-10 years until the technology is advanced enough). It’s obvious that developers believe the same, with Social gaming tycoon ‘Zynga’ releasing the hugely popular ‘City Ville’ (similar to Farmville) for the app market without needing a Facebook account to play the game (although you are invited to connect your account).
The Freemium app market’s extraordinary growth was slightly stunted on the apple forum due to apple’s ban on incentivised installs. Developers figured out that if they offered the user virtual currency incentives within the current app to download another product of theirs, it would jump up rankings in the app store. App has now banned this process, so developers may be learning towards in app advertising to make up this revenue drop.
According to Neilson, Android downloads have surpassed iTunes holding 39% of the market compared to Apple’s 28%.
In spite of the fact Apple and Android have become synonymous with the word smartphone, other companies are reporting growth in the app download sector. Although according to Neilson, the Nokia OVI store only holds 2% market share, the company have announced this month that they have reached 7.62 million downloads per day- a major increase which they have attributed to the removal of the forced registration process for free app downloads.
Whether it’s Blackberry, Andoid, Apple, Ovi etc, it’s clear that the market is booming, and the game market is the frontrunner of this growth. The functionality possibilities have only been touched upon in the smartphone sphere, so if you’re thinking about entering the market, it’s time to jump in the deep end. Watch this space.
If you would like to discuss App development, contact a member of the team here.
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Combined Media is a leading independent interactive agency that specialises in web design and development. We create websites, e-learning tools, interactive presentations, applications and all things digital. Founded in 1992, Combined Media has developed processes that combine the best aspects of user-centred design and technology. Our aim is to produce products that look great and are easy to use. Our work is created using excellent project management for our clients. Based in Dublin, clients include VHI healthcare, Roche Products, Novartis, ESBIE Independent Energy, Barnardos and World Vision.
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