The Android market of Google Play is eventually giving the revenue promised since long by its huge download numbers.
A recent report by App Annie, a mobile analytic company, indicates that 90% of the Play revenue is now generated by games, and 98% of that revenue comes via freemium apps. The data of App Annie has revealed that Japan leads all the countries when it comes to pouring cash in Google‘s coffers.
On Monday, in its report, App Annie, which just acquired Distimo, said, “There are now over 1.5 million apps available on Google Play. The number of apps grew by around 60 percent between July 2013 and June 2014.”
While on one side, Google has had huge download numbers since long, the revenue it is generating for the developers is now beginning to outpace downloads. The downloads increased 1.5 times over the last year, while the revenue increased 2.5 times. This is a great news for the developers, but a bad news for its rival Apple. This is because Google is improving day by day at monetizing mobile apps. Also, the consumers, especially in Russia, Brazil, India and Japan are spending a large amount of money on the “free” apps which they download.
While there are a large number of games on Google Play, all categories are moving up and towards the right in downloads and revenue.
The downloads of entertainment apps increased about 35%, while the downloads of social apps grew over 50%. Moreover, communication apps, such as WhatsApp and the ubiquitous Messenger, jumped over 100%.
Not only the recent increase in revenue, but almost all other revenues on Google Play, come via freemium apps. Just 2% of the Play revenue comes from pay-to-download apps, with majority coming via in-app purchases. Brazil is the only country with more than 10% of its revenue coming from paid apps, or else, paid apps that have in-app purchases.
Asia, especially Japan, continues to be a big story for Google Play. It was the biggest contributor towards the revenue of Google Play in the first quarter of this year, carrying a trend with around 2.4 times growth in revenue as compared to the last year’s same period. However, US moved ahead of South Korea, with a stronger 2.6 times growth, while Korea was behind with 1.9 times growth in revenue. Both UK and Germany are growing gradually, though on smaller bases.
Furthermore, US saw strong downloads too, with 1.2 times growth, however, Russia and Brazil were higher with 1.9 times and 2.6 times respectively.