Study: the impact of price drops on downloads on the App Store

You know, on the App Store
Price drops are frequent and we work every day to help you
point out the most interesting ones inour post from
evening.

However, we can ask ourselvesthe impact that these can have
price cuts on revenue generated by developers. In
in other words, do they benefit from it?

In its latest study, Distimo took a close interest in these drops in
price andthe figures they give us are particularly
interesting:

Unsurprisingly the study shows that the price reductions are much more
effective on iPhone than on iPad. On iPhone, when an application drops
price, downloads over the cumulative period of 5 days following the
decline increases on average by 1665%.

On iPad, over the same period of 5 cumulative days, the increase is
substantial, but weaker and reached 871%.

Well known to developers, the price reduction aims to increase the
number of downloads to climb the rankings and thus obtain
more visibility. However, promotions are generally rather
low and the majority is less than $3.

On iPhone, 42% of price drops are between $1 and $2. On iPad,
where generally apps are a little more expensive, only 20% of apps
have exceeded the $4 reduction.

However, for the developer, increasing the number of downloads does not
is not enough, the money must come into his pocket. By thus lowering
the price, he is betting that the increase in downloads and therefore
purchases will be large enough to fill the shortfall
earn.

According to the study, it is only after 3 days of promotion that the increase in
income is felt. At this point, Distimo claims that the developer
records on average growth in its turnover of around
95% on iPhone and 51% on iPad.

Even more interesting, this increase continues over the days for
reaching, after one week, 71% on iPad and 159% on iPhone.

Conversely, a price increase can have a negative effect on the
number of downloads. After 5 days, Distimo claims that the
iPhone downloads fell 46% while iPad downloads fell by
67%.

You understand, the important thing is to succeed in adjusting the cursor to
that the buyer and the developer benefit from it. However, with
such figures, App Store promotions still have a bright future ahead
they.

source