Dale Carr the CEO of Leadbolt, an advertising network for apps, has written an article over at DevBeat that dispels the myth that iOS developers make more money.
Carr’s article focuses on an article written at Fortune.com based on analyst Piper Jaffray’s research suggesting that Android’s app revenue is only 7% of iOS developers. Carr argues that the research by Jaffray is only looking at direct revenue from the Android Market vs the revenue made by iOS developers with apps in Apple’s app store.
More after the break
Jaffary’s research doesn’t take into consideration third party app markets. iOS apps are exclusively released in the iOS app store. Developers of Android apps have the Android Market, Getjar, Amazon and other third party app stores where they also make money by publishing apps.
Carr’s article also argues the fact that the research doesn’t consider those who monetize their apps with an app advertising. Millennial Media also agrees that the bulk of money for Android is made in advertising. According to Carr and others 90% of Android apps are free apps.
Carr also quotes the latest Distimo report which suggests that paid apps only saw an increase of just 7% in the 12 months leading up to July 2011. The previous year the increase was 34%.
Android developers are also getting more bang for each click. Click through rates (CTR) are almost double on iOS than they are on Android however the cost per thousand is only 30% higher. Android generates twice the ad impressions of iOS as well. This comes from the fact that Android has more market share and is targeting segments of the smartphone ecosystem that iOS will never touch.
Carr suggests that ultimately the closed nature of the Apple ecosystem will hurt developers. Android’s openness and the fact that developers have multiple avenues to build revenue from, will show where the dollars actually are.