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Report: Worldwide App Revenue To Exceed $15 Billion in 2011

Advertising to generate one-third of app store revenue by 2014, per Gartner.



Matt Kinsman By Matt Kinsman
01/28/2011

Mobile app downloads will increase 117 percent to 17.7 billion worldwide while mobile application store revenue will grow to more than $15.1 billion in 2011, a 190 percent increase, according to Gartner Inc.

In 2010, app stores generated an estimated $5.2 billion from both download sales and advertising revenue. Between 2010 and 2014 Gartner predicts that number will grow more than 1,000 percent to $15.1 billion.

Revenue generated by app stores is typically split between storeowners and app developers and the average revenue share continues to be 70/30, with the developer getting the larger cut. However, by 2014, advertising will account for just under a third of the revenue generated by app stores, up from 16 percent in 2001, according to Gartner.

Smartphones may have peaked for app usage but downloading apps onto tablets will surge. "While the average number of downloads per device onto a smartphone will remain stable as the market grows, it must be assumed that media tablets will drive more downloads from consumers, boosting the overall average downloads per device," said Gartner research vice president Carolina Milanesi. "We estimate that Apple's App Store drove close to nine application downloads out of 10 in 2010 and will remain the best-selling store across our forecast period (through 2014), although to a lesser extent, as other stores manage to gain momentum."

 

Matt Kinsman By Matt Kinsman
01/28/2011







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