Can You Make Money From Building Mobile Apps? [Developer Survey] About the author: George is co-founder at Avocarrot where he develops state-of-the-art technology for mobile native ads. In the largest app developer survey to date, the Developer Economics team has surveyed 10,000 mobile developers in more than 130 countries during April – June 2014 to identify trends in revenue performance, platform adoption and developer tools usage. The Developer Economics Q3 2014 report is available for free download and tries to uncover the potential mobile development opportunities that lie ahead. One of the key findings from the survey is that more than 50% of all app developers are below the so-called “app poverty line” and with an estimated 2.9 million mobile developers in the world, the mobile app economy can get under heavy strain in the next years. The report gives a well-rounded picture and here we’ll highlight some of the trends related to app monetization in particular. App Monetization Trends
The majority of app businesses are not sustainable at current revenue levels. 50% of iOS developers and 64% of Android developers are below the “app poverty line” of $500 per app per month. Depending on geographical location, at least 69% of developers can’t sustain fulltime development from app revenues only. The app economy is a clear winner-takes-it-all game as revenues are highly concentrated around only a few publishers. Only 1.6% of developers have apps that earn more than $500K per month and collectively these developers earn multiple times what the all rest developers earn together. 88% of developers earn less than 11% of all app store revenues. Out of all developers that are interested to make money from mobile apps, 24% actually make nothing at all and another 23% make less than $100 per app per month. 67% of mobile app developers target consumers directly and 16% target enterprises. Developers who target enterprises are twice as likely to have earnings of more than $5K per app per month. iOS developers targeting enterprises are 2.5 times more likely to be earning more than $25k per app per month than their Android counterparts.
30% of developers use mobile ad networks, however, this is not correlated with higher than average revenues.
App Annie shows that 80% of the app store revenues are in the game category and again revenues are concentrated only in a handful publishers. 33% of app developers make games but 57% of those games make less than $500 per month. 3% of mobile game developers who have shipped 50+ titles are 9 times as likely to be earning over $50K per app as the 62% that have shipped between 1-3 titles. Non-game developers target 1.75 platforms whereas the average game developer targets 3 platforms. Also, 47% game developers use Unity for cross-platform game development and 15% Adobe Air. There’s a strong correlation between the more tools developers use (i.e. user analytics, cloud platforms, ad networks, push notifications etc.) and the more money they make.
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