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Google markets to cheap skates

danaj

danaj

Android Enthusiast
What do you guys think about this article? I personally have bought quite a few apps, just to support the developer. Also, I heard a rumor that Rovio made more off the free version of Angry Birds than the pay version. So do you think Google markets to cheapskates? if so will it be Android's undoing?
Does Google market Android to cheapskates? - CBS News
 
Google doesn't get any revenue from free, ad supported apps does it? Of course people aren't spending on apps when so many of the popular apps have a free/ad supported version. then there's the fact that there are at least 2 competitors I've heard of to google's market place vs apple's monopoly on its app store. Oh, and most of the time a price tag isn't an indicator of quality, as some paid apps have made painfully clear to users... so when its a question of gambling even a couple bucks when the free version is good enough, well it never is.
 
Seems like an extremely lazy article. Has the feeling of somebody who needed a story, who was up against deadline, and took a couple of quotes from one disgruntled dev and stretched it into an article with no research or insight. This story has been done to death. The Android market isn't perfect, but it's doing fine. Some Android apps make more money, some iOS apps make more. It's true more Android apps make their money from ads vs sales, but most have a paid, ad free option. I don't see any shortage of Android apps, so the devs must be making money somehow. One area Android lags behind is high end games, but personally I don't really like playing anything but just time wasting games on a phone anyway. I certainly wouldn't pay $10-$15 for a game on my phone, so maybe I'm one of those cheapskates lol.
 
Well, Google's primary business is in Advertisements. I believe that's one of the objectives Google had when it purchased Android: Ad Mobile Market penetration. Google and Apple both have different strategies that the devs adopt on each side for its main advantage. A great example of course is Rio and how they handle Angry Birds on each side. On iOS, there's a free trial version of 5 levels and a paid version with the full game. On Android, both the ad version and the paid version both have the full game. When Rio released its financial report, it stated that it made over $1 Million a month off of the revenue from their ad version on Android. The thing with in ads based apps is that the revenue that the developer gets from ads is self sustaining. You only need to buy the app once for ($1) but with an ad based, if you play with the app half an hour ever day for the next year and the developer gets $0.01 (or something) for every ad displayed....you can see how the ad will add up when you times that by MILLIONS of users.

But as well as an innovative game, Rovio also designed an innovative business model. "We saw on the iPhone that paid content works," Vesterbacka says. Consumers pay for the initial download and Rovio keeps the game fresh with updates. On Android, they saw that paid content wasn't working, so went with an ad-supported model. It now earns them more than
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Cheapskate is one word to describe us...

I like to think of us as educated buyers. We see that with an Android device, we can do more without having to pay the Apple premium, and we're also not locked in to Apple's proprietary cables, iTunes, or whatever else.

We get the most bang for our buck, so what's wrong with choosing an app store that offers equivalent functionality for a cheaper price?

Sure, this is a struggle for developers, but Android's adoption is still growing, so developers need to step up their game. Sure life is easier in Apple's world, since people there tend to be more liberal with their wallets, and there's only one platform to develop for, but these developers need to remember that Apple is the exception. The rest of the world (not just Android) is fragmented to hell, and if you can't deal with that as a software developer, you should either stick exclusively to Apple, or find another line of work.

Any web developer will tell you that life would be so much easier if there was only one browser to support (or if IE didn't exist).

Any car stereo manufacturer will tell you life would be easy if all car dashes had a standard opening (they used to, but not so much anymore)

Any window manufacturer will tell you life would be easy if all window openings were the same size and shape.

The good pay apps on Android market do just fine. If your app isn't selling well, you can blame Google, fragmentation, or the cheapskate customers. But don't forget to also blame yourself for making something that's not compelling enough to loosen wallets.
 
<sniff>
<sniff>

I smell the machinations of iMarketing around here! Too many Android market (play) is too expensive/cheap/unprofitable articles recently for coincidence.

>You don't want to be a cheapskate, do you? Then buy a idevice and be one of the cool kids.<
 
Why go after the market? Couldn't they make the same argument regarding Android phones themselves? "The only reason Android is doing so well is their phones are cheaper and better market to those of 'less discerning' tastes."
 
AntimonyER said:
Why go after the market? Couldn't they make the same argument regarding Android phones themselves? "The only reason Android is doing so well is their phones are cheaper and better market to those of 'less discerning' tastes."
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They already have *big angry face*

danaj said:
Does Google market Android to cheapskates?
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Also, on the note of apps, I have spent over $100 in app donation and app purchases since I got my first Android Device, a Nexus One (ordered through Google and all). So yup....seems like I fit the profile of a cheapskate!
 
Roze said:
Also, on the note of apps, I have spent over $100 in app donation and app purchases since I got my first Android Device a Nexus One (ordered through Google and all). So yup....seems like I fit the profile of a cheapskate!
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Ok, noting this down: On March 13th, 2012: Roze single handedly took down the Android platform. Way to go.

:p

But for the topic: I guess we now know why we have "Google Play" rather than "Android Market". There's a new sheriff in town (the new head of Android Software sales or whatever the title is). And Google want's to put more emphasis on app development. I don't see the wrong in that.
 
jerofld said:
Ok, noting this down: On March 13th, 2012: Roze single handedly took down the Android platform. Way to go.

:p
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Eh? What did I do :P

But for the topic: I guess we now know why we have "Google Play" rather than "Android Market". There's a new sheriff in town (the new head of Android Software sales or whatever the title is). And Google want's to put more emphasis on app development. I don't see the wrong in that.
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I don't know, by rebranding it from Android Market to Google Play, I feel that the shift is to move the focus away from apps to media content (movies, music and books)
 
Here is some of my observations:

I can go into any Walmart, Target, 7-eleven, or Safeway and buy a $25 iTunes gift card.
I worked with inner city kids a few years back and many of them used their allowances to buy gift cards to purchase music for their ipods because they did not have credit cards.
A few years back you could open a Sprite soda bottle and have itunes codes.

Google has no retail experience. Until they figure the payment system, Android market (err Play) will not have significant sales.
Even recently, they still haven't figured how to have their developers use in-app purchases. Many were using paypal and other 3rd party.

They also need to sort out the kinks. I was buying mp3s mad crazy on the Google Music store during Xmas because you could get albums for $4. My party ended shortly when Google messed up a few orders (duplicates, couldn't download purchase music, double charges,etc). I gave up despite the bargain prices.
Google Music, by all account is a failure.

(source: Google Music not living up to expectations (exclusive) | Media Maverick - CNET News )

This may account for some of the reasons why the Android market is pooring so badly. Pooring very, very badly.


--------------------------------
Now for some stats
--------------------------------

Android App revenue is 7% of iOS.
Google paid $240 million to developers. Apple paid $3.4 billion.

Since its inception, Google's (GOOG) Android Market Place has generated about 7% of the gross revenue of Apple's App Store.
Apple (AAPL) has about 85% to 90% market share of the total dollars spent on mobile apps.

Only 1.3% of Android apps are paid, compared with 13.5% of iPhone's.

Apple developers have made more than $3.4 billion since 2011, compared with less than $240 million for Google developers.

Although Android is likely to grow its smartphone market share faster, Apple will probably maintain a 70%+ share of mobile app dollars spent over the next 3 or 4 years.


SOURCE: Piper Jaffray: Android app revenue is 7% of iPhone's - Apple 2.0 - Fortune Tech


screen-shot-2011-11-21-at-11-10-36-am.png


Paid app downloads:

Android: 1.3% of 6.75B = 87.75M paid downloads
iOS: 13.5% of 18.566B = 2506.4M paid downloads

Ratio of iOS to Android: 28.56

iOS users have downloaded more than 28 times as many paid apps as Android users. From the overall gross revenue shown, iOS users have spent $14.45 for every $1 Android users have spent on paid apps. The same goes for developers: iOS developers have made $14.45 for every $1 made by Android developers. Thus, it's likely that, if you have a popular app, you'd make a LOT more from an iOS app than an Android app.

In another source, I can't find it right now but it states that
the iPad (a small portion) of iOS, out-sells more apps than Android as a whole.


Another source:

Apple users buying 61% more apps, paying 14% more per app - Apple 2.0 - Fortune Tech
iPhone app sales kicking app on Android Market, says study | Apple - CNET News
 
Roze said:
I don't know, by rebranding it from Android Market to Google Play, I feel that the shift is to move the focus away from apps to media content (movies, music and books)
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Nah. All money making content, all platforms, one easily recognised branding. It's just business sense. It will save money and drive up revenue
 
SUroot said:
Nah. All money making content, all platforms, one easily recognised branding. It's just business sense. It will save money and drive up revenue
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Yes, the BRANDING makes sense but choosing a name that focus more on the Media, i.e. Play, doesn't for me and a lot of people that uses Android. PLAY your music! PLAY your movies! PLAY your games! PLAY your books! All in the convenience from Google Play. :rolleyes: Go to the About Google Play Feature page and that's what the message is.
 
Hi boss! We in the IT Department think it's time to switch our mobile enterprise investment to Android! :)

Do they offer apps for our workplace needs?

Yes, you buy them from Google Play.

NEXT!!
 
I hate to say it but these stats aren't marketing.

I would never ever call Android users cheapskates. It's denigrating and reductionist thinking. But the culture is fundamentally different. Nevertheless I have seen slow but steady gains in sales. But nowhere near enough to live on. And while I despise ads I have recently begun to seriously consider free, ad supported versions of my apps.

So while I don't sit in judgement of the users, I do need to face the reality of the market conditions.

Also an interesting side note and little known fact: Most of the 30% from each Android Market sale goes to the wireless carrier. It was a back room deal made way back in the early days to prevent each carrier from creating their own app store. How much this applies to books movies and music I don't know. But for sure Google makes very little from apps.
 
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