High Hopes For App Revenue Growth In 2011

Publishers are expecting a significant boost to their applications revenues in 2011, according to the findings of a survey carried out jointly by mobile advertising platform provider Millennial Media, media conference specialist DIGIDAY and US-based financial house Stifel Nicolaus, writes Martin Conway.

Entitled State Of The Apps Industry, the survey, which took in the opinions of more than 500 developers, publishers and advertisers, reveals that some 31 per cent of respondents predict that their app revenues will increase by 100 per cent next year, with an additional 17 per cent foreseeing app revenue growth of 50 per cent. Only 10 per cent of respondents expected this form of revenue to remain flat.

State Of The Apps Industry builds on a similarly-titled survey, commissioned by DIGIDAY in the final quarter of 2009, allowing comparisons to be made between trend developments over the past 12 months. The findings highlight a notable shift in what advertisers and marketers currently deem to be the key brand verticals when it comes to developing apps for their businesses.

For instance, while in 2009, consumer packaged goods (CPG) led the top five brand verticals, with retail and auto apps claiming second and third slots respectively, most respondents this year opted for entertainment as the most important brand vertical. Technology and media have been listed as the second and third most crucial verticals, pushing retail and CPG to fourth and fifth place respectively. Respondents to the 2010 survey have also identified reach, targeting and cost-per-download as the three most vital considerations when selecting a network.

In terms of preferred mobile app platforms, the iPhone and RIM have slightly gone off the boil since the last survey was published. While both have retained their positions among the top five platforms of choice, alongside Android, iPad and Windows Mobile, their popularity has shifted downwards somewhat, compared to burgeoning demand for Android and Symbian solutions. The survey records that the majority of publishers plan to add Windows Mobile 7 and iPad to their offerings in 2011, with 29 per cent confirming that Android is sure to figure in their plans – laying the foundations for what could prove to be an interesting Android vs iPhone clash next year.