Pinch Media reveals interesting App Store statistics

Apple Insider has posted results of Pinch Media's App Store usage report, which goes into detail on things like free app usage and how price drops affect apps.

There are many interesting statistics revealed, but one that speaks out is 5% of apps downloaded aren't used past the first month of download. In addition to this, only 20% of users continue to use free applications past the first day of downloading. Greg Yardley, Chief Executive of Pinch Media, has also made a statement about free applications. He said that, "[snip] unless there's something inherent about the app that screams free, sell it"," because applications with advertising built in simply do not generate enough money for developers. On average, free applications would need to generate $8.75 CPM (cost per thousand, to advertisers), but currently they only make 50c to $2 CPM. Hardly the numbers they need, so it doesn't warrant the time taken to develop programs for the App Store.

These statistics don't speak very highly of the quality of content available on Apple's store, but that doesn't stop it from being successful and having other companies follow suit.

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23 Comments

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The amount of apps with advertising in them is annoying tbh. How many people actually click the adds anyway.

it takes too long to sift through the piles of dung to find anything worth even DOWNLOADING. then u download and then delete right away. only ones ive kept and used so far: pandora.

I like the free apps. There are a lot of good, free, non-lite apps that I use regularly. Please don't make them all paid apps.

Could you provide examples please? :)

I know of many applications which are fun and useful.

The Facebook application is an obvious one to me.

Considering that most of free apps are "Lite" versions that are actually "Demo" (Apple refuse to allow using the word Demo), I don't see people using them ever and ever...

As per the first two post; this thread has no meaning without knowing where the information came from. I could (with enough research) come up with the same (or close to) on MS, Dell, HP, etc., sites. Not saying it is true, howevr, how about some data as to where. . .

@Pam14160 -

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I'm curious as to how they got the statistics, myself; does this mean applications phone home to report usage? Not sure how else they'd get data on how often applications are used on the iPhone/iPod touch.

Sam Symons Live said,
I'm curious as to how they got the statistics, myself; does this mean applications phone home to report usage? Not sure how else they'd get data on how often applications are used on the iPhone/iPod touch.

Pinch Media is an advertiser. Hence, it'll only be applicable for those apps which have ads by PM.

I don't think this is true. There is a wholer ange of aps available, and putting together Google Earth and iFart just because they are free doesn't make sense.

I think a more obvious conclusion would be "silly apps get used once". Saying that they should sell all of them will only make the app store less competitive and everyone will stop making apps.

What does developers think of this stuff?

I've downloaded quite a few apps that I have and used a couple of times. That said it's no different to downloading desktop programs, there are plenty that have been uninstalled almost straight away.