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GetJar: Advertising set to boost app sales to $17.5 bl by 2012

Rapid growth from app stores and freemium
GetJar: Advertising set to boost app sales to $17.5 bl by 2012

The latest report commissioned by independent mobile app store GetJar claims free apps sponsored by advertising will become an increasingly adopted model over the next couple of years.

Designed to look at the potential value of the global mobile apps market from now until 2012, the report which was carried out by Chetan Sharma Consulting concludes that the market will grow from $4.1 billion in 2009 to $17.5 billion by 2012.

This growth will be driven by a rise in the number of app stores, the report claiming there are 38 currently in existence, with more to follow.

As a result, the number of downloads will also increase year-on-year by 92 percent, from 7 billion in 2009 to almost 50 billion this year.

App stores killed the radio star

"With regards to downloads and where it's going, there’s no earth-shattering surprises," said GetJar VP Patrick Mork, presenting the report during the Plugg Conference in Brussels.

"The global market will be worth $17.5 billion by 2012, which effectively means that it will outsell more established mediums."

Indeed, it's a figure that puts mobile apps ahead of the $13.8 billion expected to be generated by the sale of CDs in 2012.

It's not out of step with previous predictions, either. Consultancy firm research2guidance recently came up with similar projections, concluding yearly revenues generated by app sales will reach $15.7 billion by 2013.


However, where these apps are downloaded from is set to change, according to GetJar.

The report suggests that, while paid apps will continue to generate the most revenue over the next couple years, free apps funded by advertising will become increasingly popular.

Currently accounting for 12 percent of all app revenue in 2009, the company believes advertising-based revenue will reach 28 percent three years later.

Given GetJar currently only handles free apps, it's perhaps not surprising it believes advertising will have an important role within the industry in the coming years  although Mork did admit GetJar will begin selling paid apps this year because of advertising's slow take-up.

"Some consumers will never pay for content, but the business models haven't matured yet, so the paid model is the only thing they know and works to a certain extent," he concluded.

"But selling content in emerging markets will never be a big market. Somehow we'll have to monetise off the back-end. I think it will happen, but it will take a few years."

[source: mocoNews]