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	<title>Mobile Perspectives &#187; AdMob</title>
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	<description>Computing at the Edge!</description>
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		<title>Upgrades from Lite Version are #1 Driver of iPhone App Purchases</title>
		<link>http://www.BluMtnWerx.com/blog/2009/08/upgrades-from-lite-version-are-1-driver-of-iphone-app-purchases/</link>
		<comments>http://www.BluMtnWerx.com/blog/2009/08/upgrades-from-lite-version-are-1-driver-of-iphone-app-purchases/#comments</comments>
		<pubDate>Fri, 28 Aug 2009 22:39:30 +0000</pubDate>
		<dc:creator>deans</dc:creator>
				<category><![CDATA[App Marketing]]></category>
		<category><![CDATA[Resources]]></category>
		<category><![CDATA[AdMob]]></category>
		<category><![CDATA[App Store]]></category>
		<category><![CDATA[iPhone]]></category>
		<category><![CDATA[iPhone App Marketing]]></category>
		<category><![CDATA[iPod touch]]></category>
		<category><![CDATA[Mobile Metrics]]></category>

		<guid isPermaLink="false">http://www.BluMtnWerx.com/blog/?p=284</guid>
		<description><![CDATA[The July metrics report from AdMob includes some really interesting bits.&#160;  Even if you don't completely trust their methodology, you should at least take a look at their results.]]></description>
			<content:encoded><![CDATA[<p>In the brave new world of app marketing, we have very little real data regarding how people actually make buying decisions.&nbsp;  Of course, we all have theories and intuition, but it&#8217;s still mostly a black art.&nbsp;  While I&#8217;m not saying that they&#8217;ve completely illuminated the landscape, <a href="http://www.admob.com/" title="AdMob: The Mobile Advertising Platform Home" target="_blank">AdMob</a>&#8216;s recent <a href="http://metrics.admob.com/2009/08/july-2009-metrics-report/" title="AdMob:  July 2009 Metrics Report" target="_blank">July Metrics report</a> at least gives us some information.&nbsp;  The report can be downloaded <a href="http://metrics.admob.com/wp-content/uploads/2009/08/AdMob-Mobile-Metrics-July-09.pdf" title="AdMob:  July 2009 Metrics Report Download (PDF)">here</a> (PDF).&nbsp;  The unsummarized data is also <a href="http://metrics.admob.com/wp-content/uploads/2009/08/AdMob-Mobile-Metrics-July-09-Survey-Supplement.pdf" title="AdMob:  July 2009 Metrics: iPhone and Android app discovery and usage (PDF)">available</a> (PDF).&nbsp;  I recognize that some in the community don&#8217;t appreciate AdMob&#8217;s methodology, but it&#8217;s hard to resist a tasty morsel when we&#8217;re so starved for insight.</p>
<p>AdMob chose to highlight the following results:</p>
<blockquote><ul>
<li>Android and iPhone users download approximately 10 new apps a month, while iPod touch owners download an average of 18 per month</li>
<li>More than 90 percent of Android and iPhone OS users browse and search for apps directly on their mobile device instead of their computer</li>
<li>Upgrading from the lite version was the top reason given when users were asked what drives them to purchase a paid app</li>
<li>iPhone and iPod touch users are twice as likely to purchase paid apps than Android users</li>
<li>Users who regularly download paid apps spend approximately $9 on an average of five paid downloads per month</li>
</ul>
</blockquote>
<p>As the proud user of an iPod touch, I was thrilled to see that my fellow touch users are, by far, the most prolific downloaders:<br />
<a href="http://metrics.admob.com/2009/08/july-2009-metrics-report/" title="AdMob: Avg Downloads per User per Month"><img style="vertical-align:middle; float: center; margin: 2.0em; width: 445px;" src="http://metrics.admob.com/wp-content/uploads/2009/08/Metrics-Downloads1.jpg" title="AdMob: Avg Downloads per User per Month" alt="AdMob: Chart of Avg Downloads per User per Month"/></a><br />
There are a couple of interesting things about this chart.&nbsp;  First, it should probably be titled, &#8220;Avg. Downloads <strong>per User</strong> per Month,&#8221; but that&#8217;s nitpicking.&nbsp;  The other thing that caught my attention is that, while iPod touch users are nearly twice as productive (or perhaps counter-productive, depending on whether you&#8217;re their employer) as iPhone users in terms of downloading apps, they are much less likely to pay for their apps.&nbsp;  Nearly 25% of the iPhone apps are paid, while just over 10% of the apps on touches are paid.&nbsp;  This is another reminder that the user communities are not at all homogeneous across the two devices.</p>
<p>For this post, I&#8217;m going to focus on the iPhone / iPod touch.&nbsp;  Although the report also covers Android, at this point, I&#8217;m more interested in the results for our target platforms.</p>
<p>In going through the report, I noticed a couple of other bits that are likely to influence how I conduct campaigns for BluMtnWerx.&nbsp;  For example, the top three ways that users discover apps are, in order:</p>
<blockquote><ul>
<li>Browsing through top App Store rankings</li>
<li>Searching for a specific type of app</li>
<li>Word of mouth (recommendations from friends or colleagues)</li>
</ul>
</blockquote>
<p>They also asked people who downloaded at least one paid app / month, &#8220;What Usually drives you to purchase a paid app?&#8221;&nbsp;  I guess that I shouldn&#8217;t be surprised, given some of the experiments that developers have conducted, but the top reason was (emphasis mine):</p>
<blockquote><p>&#8220;<strong><em>I like the free version and upgraded</em></strong>&#8220;</p></blockquote>
<p>I sure wish that Apple would approve iPuckLite!&nbsp;  It&#8217;s been waiting for nearly a month, now.</p>
<p>By contrast, the bottom two were:</p>
<blockquote><ul>
<li>News articles or blogs</li>
<li>A brand I know reaches out to me and introduces an app</li>
</ul>
</blockquote>
<p>Clearly, this reinforces the notion that getting high rankings in the App Store is the ticket to success.&nbsp;  It might also suggest that the effort put into blogging &amp; self-promotion may have less impact (so why am I writing this?).&nbsp;  When I think about the results, though, I wonder whether the grassroots blogging and outreach are actually necessary prerequisites for getting good rankings on the App Store.</p>
<p>One place where the sample bias in AdMob&#8217;s methodology really comes through is the #4 item on their list:</p>
<blockquote><p>&#8220;Seeing ads while using other apps&#8221;</p></blockquote>
<p>The report contains some extremely interesting data on daily usage of apps.&nbsp;  Apparently iPhone users spend, on (weighted) average 84 minutes/day using apps, while iPod touch addicts are tapping away for 121 minutes/day.&nbsp;  The most fascinating thing in that data set, though, was the report that 21% of iPod touch users spend <strong><em>More Than Four Hours</em></strong> each day stabbing at their screens!&nbsp;  I don&#8217;t know whether to feel happy, or sad, if that&#8217;s true.</p>
<p>Finally, AdMob did some back of the envelope calculations to conclude that the App store paid market is currently (August 2009) about $200M per month.&nbsp;  Stunning.</p>
<p>Even if you don&#8217;t like AdMob, you really should spend a few minutes evaluating the information in this report and considering how it might impact your business.</p>
<p>&nbsp;  </p>
<hr .../>
Technorati Tags:&nbsp; <a href="http://technorati.com/tag/iPhone" rel="tag">iPhone</a>, <a href="http://technorati.com/tag/iPod+Touch" rel="tag">iPod Touch</a>, <a href="http://technorati.com/tag/Apple" rel="tag">Apple</a>, <a href="http://technorati.com/tag/AdMob" rel="tag">AdMob</a>, <a href="http://technorati.com/tag/Mobile+Metrics" rel="tag">Mobile Metrics</a>, <a href="http://technorati.com/tag/mobile" rel="tag">mobile</a></p>
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