Jun 14

Some stats from Stuart Dredge

Some Positives

Pizza Hut – iPhone app has generated $1M in sales (pizza). Drives traffic to website to create an account etc

Paper Toss – 10M+ downloads, $125K/month ad revenue, $1.25M in paid downloads

WSJ – 64K active users, $17.99/mth

Pandora – 30K users/day on iPhone, 25% of overall traffic is iPhone, $40M revenue

Doodle Jump – 4M since its launch in March ’09, 80K downloads on christmas day, 2.8M revenue ($0.99), Android app retails at $3.99

Red Laser – 2M downloads, 950K users/mth, $1.99 -> $2.25M revenue, 50M codes scanned

Flight Control – 2M downloads, 1.4M revenue

Ebay – $600M mobile revenue, $1.5B revenue overall 2010, 1.5M items sold over christmas 2009

Lessons (on how to be successful)

  • Application has to be excellent
  • Get people talking about you app in the pub etc
  • Mix and match streams
  • Free spawns premium
  • Help people buy things in the real world
  • Free apps are great for cross promotion
  • You have to be lucky!



Andrew Fisher, CEO

  • 250 new users/week
  • 2M interactions/day

Considerations (when creating apps)

  • What is the proposition
  • Single v’s multi platform
  • Development (how much?)
  • Business model, free? Paid? Advertising?
  • Go to market strategy
  • Future opportunities <- See below re: TV advertising

Lesson – If you charge for the application do not include for advertising


  • Built for mobile
  • Utility = longevity
  • Built for all platforms and application stores
  • Preload opportunity with operators and OEM’s <- holy grail
  • Available in 200 countries <- beware of localisation issues

New service – Tag a TV app to receive a promotion.


Russell Buckley, VP Global Alliances

Video will be big in app advertising.

AdWhirl – iPhone and Android open source ad platform

Costs around $15k in advertising to get your app into top 20 on app store.


Ray Anderson, CEO

2006 mobile apps were worth $3.1Bn

2009 mobile apps were worth $9.7Bn

How people buy apps:

Common – browse -> buy -> download

Freemium – browse -> download -> use -> buy


  • App store wars
  • Customer care <- may not be the same in each region
  • Payment flexibility

The Opportunity

  • Ride the free app wave!
  • In app billing
  • Draw users to website


Some interesting perspectives on making money from applications and advertising from people that have experience. The above is not an exhaustive list of everyone that presented but just comments that stuck out for me. The panels whilst well presented did not talk about anything new. At least the messages are consistent which is always good to know.

There are lots of companies doing mobile. Some are making money, some are doing it because they have to (keeping up with the Jones’). What is clear is if you can get it right the potential audience is huge! However before you rush off and start coding that iPhone app you may be better of putting a £1 on the lottery.

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