Published On: Sun, Jun 8th, 2014

Occupy the App Store!

Levi-ShapiroMobile applications are a lousy business. More than 60% of applications earn less than $500 per month (Vision Mobile). And the market is getting worse every day. By 2018, Gartner predicts that less than .01% of mobile applications will be financially successful . As developers grow increasingly desperate for monetization, Amazon (which runs its own app store in 200 countries) identified success factors of the Top 50 applications.



Median revenue per app

I. More Time = More Money

Getting people to download the app is only the first step toward monetization. 62% of revenue occurs after the first 7 days and 35% of revenue occurs after the first 30 days. Your app needs to create a habit. The Crafting Contagious Workbook by Jonah Berger provides some tips (


Levi Shapiro


II. Advertising is growing but In App Purchases (IAP) dominates.

In-app purchases generated 53% of revenue in Apple’s US App Store in January 2012. One year later, it generated a record 76% (Distimo: user-base). For ad-based apps, the two most common models are cost per click (CPC) and cost per thousands impressions (CPM)

Levi Shapiro

III. In-Store Promotion Drives Awareness and Downloads

The Top 50 apps, on average, invested more toward marketing and promotion within the App Store.  Campaign bursts, carefully tested and measured, actually achieve a noticeable increase in downloads.



The Lead Evangelist for the Amazon Appstore, Mike Hines, is in Israel this week to present at the Amazon Developer Day.


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About the Author

- Levi Shapiro is a Partner in the JIMMI Fund (, working with global tech companies to invest in Israeli start-ups. Concurrently, Mr. Shapiro provides strategic advisory to global technology, media and telecom companies as a Senior Partner at TMT Strategic Advisors. Mr. Shapiro is also an Adjunct Professor in the Media Innovation Lab ( at IDC Herzliya, teaching Digital Media Entrepreneurship, Mobile Marketing and other entrepreneurial courses. He is also the organizer of the Transitioned Media ( mHealth Israel (www.mhealthisrael) and MATI- Marketing & Ad:Tech Israel ( conferences. Mr. Shapiro’s “Unleavened Media” column (, about technology and digital media, appears in the Jerusalem Post and is syndicated across other publications. His education includes Tulane (History), Cornell (Asian Studies) and MIT (MBA).

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