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Is $4.00 a realistic amount of ad revenue per use on the iPhone?
I blogged on Monday about a Mobclix report that suggests a successful advertising-funded game can generate $4.00 per active user (or possibly unique user, there is some confusion here).
Adam Green of Assyria Games Studios had this to say:
With my stuff I’m looking at around $0.15 per user per month based on my revenue vs ADU, with a far higher than average re-open rate due to the nature of the app… And I get 20% natural growth per month based on drop off rate vs recommendation rate (so essentially per 1 new user I will get 7 new users over the course of the year (based on a 20% increase per month cumulatively multiplied each month)…
Still the numbers turn out quite good/ at a value of $12(ish) per user over the course of the year based on the recommendations they generate each… Not quite the $48 Mobclix are implying, but still not bad…"
So Adam thinks $0.15 per DAU per month is more realistic. Not that Adam talks about DAUs, not MAUs, and that his app, Daily App Dream, offers users a free iPhone app every day, so has a higher open rate than most.