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

You know, on the app store
price reductions are frequent and we are employing you every day
report the most interesting inOur ticket from
evening.

However, one wondersthe impact that these
price drops on income generated by developers. In
In other words, do they find their account there?

In his latest study, Distimo was closely interested in these drops of
Price andThe figures they deliver to us are particularly
interesting:

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

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

Well known to developers, the price drop is to increase the
number of downloads to climb in the ranking and thus obtain
more visibility. However, promotions are generally rather
weak and the majority is less than $ 3.

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

However, for the developer, increase the number of downloads
Don't be enough, the money has to get into his pocket. By lowering
the price, it makes the bet that the increase in downloads and therefore
purchases will be important enough to fill the lack of
earn.

According to the study, it is only after 3 days of promo that the increase in
returns is felt. To this point, Distimo claims that the developer
records on average growth in turnover of the order of
95% on iPhone and 51% on iPad.

Even more interesting, this increase continues over the days to
Reach, after a 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 dropped by 46% while those on iPad have dropped
67%.

You understand, the important thing is to manage to adjust the cursor to
that the buyer and the developer find their account there. However, with
Such figures, the promotions of the App Store still have a bright future ahead
they.

source