Slashdot Mirror


Windows Store In-App Ad Revenue Plummets

jfruh writes "One of the hooks Microsoft has used to get developers to build apps for Windows 8 and Windows Phone 8 has been pubCenter, an ad network that's easy to add to apps and provides revenue back to publishers. But many developers found that on April 1 that revenue abruptly dropped by an order of magnitude, with most potential ad impressions going unsold; one developer reported only 160,000 ads served to 60 million requests, a fill rate of less than 0.3%. Since many of the ads before April 1 had been for Bing, this may be a sign that Microsoft is no longer willing to subsidize its developers — and that advertisers aren't that interested in buying ads in Windows 8 apps."

7 of 196 comments (clear)

  1. As a customer... by JMJimmy · · Score: 5, Insightful

    ...I know I certainly don't want to see ads in Windows 8 apps.

  2. don't want to see ads I pay for at all by swschrad · · Score: 5, Informative

    dirty little secret: those ads loading are data you are charged for.

    --
    if this is supposed to be a new economy, how come they still want my old fashioned money?
    1. Re:don't want to see ads I pay for at all by firex726 · · Score: 5, Interesting

      One more reason why people are not too keen on metered internet.

      Unlike say a cell phone, I know if I use it for 30 minutes I have used, 30 minutes. Whereas if I visit a random website it might have multiple videos playing and will eat up a bunch of data, and I have no way of knowing this till the page has loaded.

    2. Re:don't want to see ads I pay for at all by Secret+Agent+Man · · Score: 5, Insightful

      Yeah, this was one of the major turn-offs for me. I wanted to use a couple of the apps, but once I saw ads I uninstalled them immediately. I have ad-free alternatives that work just as well. Putting ads in the default apps was a big mistake.

  3. Not surprising by Anubis+IV · · Score: 5, Insightful

    Apple has run into similar issues with their iAd advertising network that they run for iOS devices. It had an initial rush of advertisers who spent big money placing orders for "premium" ad space, followed up by results that didn't justify the additional costs. Apple extended the program to developers who wanted to advertise their apps in other apps, offering them a smaller minimum ad impression order size compared to general advertisers. That minimum was later reduced, and then reduced again, and I believe reduced yet again, along with the rates involved, indicating that interest has been weak and weakening. It seems to have finally stabilized, but it's FAR cheaper than it once was, with minimum orders that are significantly lower than they used to be.

    Meanwhile, Windows Phone 8 and Windows 8 have been seeing worse-than-expected sales since their launch, so I don't exactly find it surprising that an advertising network focusing solely on them would be faring worse than the one on a platform that is doing quite well. Not to mention that both Apple and Microsoft make their money from selling products to customers, whereas Google, who seems to be running the advertising network that's actually doing well, makes around 98% of its money from selling ads. Small surprise that they'd manage to succeed here as well.

    1. Re:Not surprising by swillden · · Score: 5, Informative

      Google, who seems to be running the advertising network that's actually doing well, makes around 98% of its money from selling ads.

      FYI, Google does make the vast majority of its money from ads, but not 98%. Here are recent percentages (calculated from http://investor.google.com/financial/tables.html):

      2011: 96.3%
      2012: 94.9%
      2013: 91.9% (Q1 only, obviously)

      For Q1 2013, Google's non-advertising revenues saw 150% year-on-year growth and 27% quarter-on-quarter growth, to just over $1B for the quarter. At that rate, Google is on track to have ~6B in 2013 in non-advertising revenues, and for advertising revenues to drop to less than 90% of total revenues. Perhaps even more.

      Note that none of the above includes Motorola Mobility revenues. If you count Motorola, Q1 advertising revenues were 85% of total revenues.

      Also note that this isn't because Google's advertising business isn't doing well, it's because it's non-advertising business is doing even better (except for Motorola, which is still posting losses).

      (Disclaimer: I work for Google, but this is all public information.)

      --
      Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
  4. Re:How much money do devs make from ads? by SternisheFan · · Score: 5, Informative

    I never am able to get a straight answer - if you put out a popular indie game, for example, and you decided to make it free and ad supported, for example, let's say you get 100k people to download it, and 10k people are playing it regularly what kind of money do you make? $100/month, $1000/month, $10k/month? anybody know?

    I googled and posted this above, meant to post it to you. From GigaOM, 10/4/2012:

    Most app developers make less than $500 a month (chart) By Rani Molla - Oct. 4, 2012

    We know that not every app is Angry Birds and not every app developer is Rovio. But just how tough are things for the workaday app developer? In a recent GigaOM Pro study (subscription required) of app developers, more than half of the respondents say they make less than $500 a month from their paid apps (see chart below). Perhaps not surprisingly, app development isn’t a full-time job for most of them. Some 75% of 352 respondents either hold another job or do app development only as a portion of their main job. (The picture is even grimmer for developers of advertising-dependent apps — a third of those developers make less than $100 a month in ad revenue, according to the study.)

    On the high (and much more rare) end of the spectrum, about 5 percent of app developers in the survey make over $20,000 a month. These developers tend to be part of big app firms. (see chart at linked page)

    http://gigaom.com/2012/10/04/most-app-developers-make-less-than-500-a-month-chart/