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Webinar slides from survey G

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  1. 1. A demographic and businesswoensdag 12 december 2012(Wk)
  2. 2. Today’s Agenda • Introductions • A Message about the Application Developers Alliance • Who are today’s app developers? • Where do they work? • Platform preferences • Monetization • Q&Awoensdag 12 december 2012(Wk)
  3. 3. Introduction • App developers cornerstone of multi-billion dollar app market • Very little research on this market segment • Study based on an Internet survey of app developers – 352 survey completes – Survey finished in July 2012woensdag 12 december 2012(Wk)
  4. 4. Introductions • Moderator: – Michael Wolf – GigaOM Pro, Founder of NextMarket Insights (@michaelwolf) • Panelists: – Amy Cravens, GigaOM Pro Analyst – Jake Ward, Application Developers Alliance (@Jacobmward)woensdag 12 december 2012(Wk)
  5. 5. Who Are App Developers? Demographicswoensdag 12 december 2012(Wk)
  6. 6. Male dominated industrywoensdag 12 december 2012(Wk)
  7. 7. Not as young as stereotype portrays Not  a  market  of  teen   developers—only  3%  of   respondents  are  17  or   younger 60%  of   respondents  are   30+  yrs.woensdag 12 december 2012(Wk)
  8. 8. Highly Educated 1/3  of  app   developers  have   done  graduate   work 87%  have  at  least   some  college   educa@onwoensdag 12 december 2012(Wk)
  9. 9. The modern app developer • Is the male dominance of the profession a surprise? • How can the industry attract more women? • Many app developers are mid-career. Is app development a new stop in a career path for veteran software developers?woensdag 12 december 2012(Wk)
  10. 10. Where do they work? Work Environmentwoensdag 12 december 2012(Wk)
  11. 11. Many are market “veterans” 38%  of   respondents  have   been  developing   mobile  apps  for   over  2  yearswoensdag 12 december 2012(Wk)
  12. 12. A “one man shop” market…woensdag 12 december 2012(Wk)
  13. 13. Many developers wearing multiple hats Nearly  2/3  of   respondents  do   something  other   than  app   developmentwoensdag 12 december 2012(Wk)
  14. 14. App Developer Shops: Lots of One-Man Shops • Many app developers are one-man shops. Has app opportunity resulted in the “moonlighter” generation in software development? • Roughly one in five firms are 10 people are more. Does success breed success in app development?woensdag 12 december 2012(Wk)
  15. 15. What are they developing? Development Preferenceswoensdag 12 december 2012(Wk)
  16. 16. Device Preferences Nearly  all   respondents   developing  mobile   apps TV  app   market  s@ll   nascentwoensdag 12 december 2012(Wk)
  17. 17. Leading app categorieswoensdag 12 december 2012(Wk)
  18. 18. Platform Preferences iOS  s@ll   dominates   Android  gaining   ground Growth  in   HTML5  woensdag 12 december 2012(Wk)
  19. 19. Platform Trends • Android is gaining ground – Growth in Android apps development will outpace iOS, narrowing the gap – Android continues to face challenges: fragmentation and developer friendly experience • Further concentration among top 4 phone platforms – App development for top operating systems will increase – and so will competition • Growth in HTML5 – Developers are frustrated with lack of cross-platform development tools and with restrictions of app stores—looking for alternatives to native appswoensdag 12 december 2012(Wk)
  20. 20. Platform Preferences • Will iOS always be the dominant platform preference? • TV app development has been a wasteland over past decade due to lack of standards, carrier ineptitude, etc. Will that change with new platforms?woensdag 12 december 2012(Wk)
  21. 21. How to make money? MonetizationTrendswoensdag 12 december 2012(Wk)
  22. 22. Ads Model Under Utilized Surprisingly,  only  25  percent  of   phone  app  developers  and  18   percent  of  tablet  app   developers  are  incorpora@ng   ads  in  their  applica@onswoensdag 12 december 2012(Wk)
  23. 23. Ad Performance Metrics • Ad impressions – Majority of respondents had fewer than 6,000 impressions per day – The average number of ad impressions is around 12,000 per day – Ad impressions higher for mobile phones than tablets • Ad revenues – 1/3+ of developers earn less than $100 per month from ad revenues – Average revenue per month is ~$1900 for phone aps and ~$1250 for tablet appswoensdag 12 december 2012(Wk)
  24. 24. Paid Apps More Ubiquitous Over  half  of  mobile   and  tablet  app   developers  incorporate   payment  opportuni@eswoensdag 12 december 2012(Wk)
  25. 25. Low Margin, High Volume Most  developers   price  apps  under   $1.99 Tablet  apps   tend  to  be   priced  higherwoensdag 12 december 2012(Wk)
  26. 26. Correlation between paid apps and other strategy factors • More experienced developers • Higher usage rate among independent developers • Significantly higher use of paid apps on iOS vs Android • Paid app developers highly focused on gaming appswoensdag 12 december 2012(Wk)
  27. 27. Making Money with Apps • Many app developers don’t make money. Is discovery the biggest challenge? • Are there newer monetization models to explore outside of basic ad/freemium/paid model? – Subscriptions? – Enterprise?woensdag 12 december 2012(Wk)
  28. 28. Q&Awoensdag 12 december 2012(Wk)