Friday, October 17, 2014

Top-Ranked Apps Generate More Revenue among Different Categories


According to a research study conducted by Rajiv Garg and Rahul Telang in "Inferring App Demand from Publicly Available Data," the top 200 paid applications in 2011 fell among a variety of different categories where 38 percent were categorized as games, 13 percent as productivity, 7 percent as entertainment, 6 percent as utilities, 5 percent as photography, 5 percent as education, 4 percent as business, 3 percent as news and 18 percent as the remaining categories. Using publicly available rank data to gather their findings, Garg and Telang found that the top ranked apps downloaded by iPad and iPhone users ranked first on the top paid list. In other words, apps that were highly ranked gained more downloads, earning about 95 times more revue than those less ranked/favored. These estimates help app developers and marketing professions develop better tactics in marketing their products based on the types of applications users are most commonly seen using. The researchers argue that "mobile apps are an important and fast growing technology market" and understanding the market is "important for different stakeholders." Since games, productivity and entertainment were the best paid types of applications, we can assume that developers will attempt to innovate improved and advanced apps to cater to consumer tastes.

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