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Amazon better for generating app revenue than Google, Flurry says

by Phil Hornshaw

Developers looking to make some money on their Android apps might want to look toward Amazon’s Appstore instead of Google Play, according to new data from Flurry Analytics.

The analysis focuses on apps that make their money using in-app purchases and compares apps in the iTunes App Store, the Amazon Appstore and Google Play, formerly the Android Market. The analysis takes the amount of revenue earned on average per user on in-app purchases in the iTunes App Store and sets it at 100 percent, the baseline for comparison. Then, it checks that number against how much money is brought in per user through in-app purchases in the other two stores.

The results are pretty stark. The Amazon Appstore apps are earning 89 percent of what iTunes apps pull down through in-app purchases, according to Flurry. Meanwhile, Google Play apps: 23 percent. That means that Android apps downloaded through Google and using in-app purchases to make their money are earning less than a quarter of what apps on iOS are earning. Meanwhile, Amazon Appstore apps are only shy of 11 percent of what iOS apps pull down.

Also telling is the fact that Flurry found nearly identical results in December, at least when it comes to the comparison of iTunes and Google Play. Back then, Flurry did the same analysis, and found that for every dollar earned by an app in the iTunes App Store, a Google Play app earned just 24 cents. In fact, the findings for Google Play are ever-so-slightly worse today than they were five months ago.

So it seems that Amazon’s strategy of jumping into the Android app game with both feet and even offering its Kindle Fire tablet at a loss could be paying off, making up the difference in selling content rather than hardware. Meanwhile, Google, it seems still struggles on the retail end, online or otherwise.

Flurry expects this will mean more developers supporting Amazon despite a rocky relationship in the early going of the Appstore. That certainly wouldn’t be great for Google, although it would still benefit, since its ads will continue to show up on Android devices, whether their users are buying from Google Play or the Amazon Appstore.