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Half Of US Mobile App Revenue From Location Based Services: Report

Telephia (now renamed to Nielsen Mobile) has issued a report indicating the strength of the location based services market. I have to assume the following figures are for the US only: Around 13 million people downloaded a mobile application to their handset in the second quarter, generating $118 million in revenue. Of that revenue, LBS represented 51 percent. It should be noted that’s not 51 percent of the downloads, since the LBS applications tend to be 2-3 times more expensive than other applications, so it has a lower penetration in the market. The average LBS download cost $9.23, compared to Personal Organization Tools ($5.41), Music ($4.99), Sports ($4.58), Maps/Directions ($3.95), Weather ($3.82) and Wallpapers/Pictures ($3.29). I note that “games” isn’t on the list. (release)

Oct 16, 2007 7:44 AM ET

Posted In: Search, Technologies / Formats

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Comments (4)

Oct 16, 2007 1:52 PM

Surely this is incorrect? Or does it exclude the ringtone market all together?

Vaibhav

Oct 16, 2007 5:16 PM

What is the definition of app? I assume it does not include mobile internet sites i.e. WAP?

jon

Oct 16, 2007 6:22 PM

An application is a program that runs on the handset, so would exclude WAP sites, as well as subscription services, and probably content downloads that aren’t actually a program—such as ringtones and images. Most of the mobile music industry would be music files, which wouldn’t count as an app, and most wallpapers/pictures would be just image files.

James Quintana Pearce

Oct 17, 2007 2:23 AM

So basically Telephia got it all fuckt up.  All these research firms only guess at best, waste of space if you rely on them for figures…

jon

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