Google has announced that it will soon let software developers pay to promote their apps in the Play store for the first time. Building on our analysis of the App Economy.
We estimate that if only 3% of the 57bn apps estimated to be downloaded via the Play store this year are downloaded as a result of an app store ad and that the average CPI (cost per install) paid to Google is $1.50, that Google could generate $2.5bn in app marketing revenue via this initiative. It?s unclear what, if any, revenue sharing arrangements Google may have with its wireless handset and carrier
partners for this product, but even if as high as 30-50%, this still represents a significant new revenue opportunity for Google.
