Interesting data about iPhone app sales #fb

UPDATED: Developers Call BS On $2.4B iPhone App Store Number

sales

The typical App Store sales curve, according to one iPhone developer (http://www.appcubby.com/blog/files/app_store_pricing.html).>

UPDATE: The Yankee Group also says the numbers are way high, and AdMob defends its estimates, kinda, sorta. See below.

Estimates that the iPhone App Store is worth $2.4 billion a year are utterly ridiculous, iPhone developers say.

Mobile advertising firm AdMob on Thursday got a ton of press for estimating that the iPhone App Store earns billions. The number was extrapolated from a survey of about 1,000 users — and is massively overstated, iPhone developers say.

Do the math and that’s a ridiculous claim,” wrote developer Layton Duncan of Polar Bear Farm, an iPhone developer based in New Zealand.

Duncan did the math: $2.4 billion divided by the 65,000 apps in the App Store is $37,000 per app, per year. And while some developers earn that, many do not. Long Tail anyone?

David Barnard of App Cubby, a developer based in Austin, Texas, says AdMob’s number is at least 5x too big. The iPhone App Store is worth $250 and $500 million per year, estimates Barnard, who keeps a close, professional eye on App Store sales.

Here’s what Barnard says are the average prices for Apps in the App Store:

Top 10 = $1.99
Top 50 = $2.23
Top 100 = $3.18

According to Barnard, it takes about 400 sales per day to break into the top 100; and about 10,000 sales per day to hit  the very top of the charts.

Assume the average sales in the top 100 to be about 1,000 per day. If the average price for an app in the top 100 is $3.18, that’s about $116 million per year for the top 100 apps.

Outside of the top 100, some apps sell in the hundreds per day, but the vast majority are in Long Tail land: they sell in single digit territory.

“Most apps sell in the single digits per day, and quite a few don’t sell at all,” Barnard says. “There is a long tail, but it’s a very skinny one. I wouldn’t be surprised at all to learn that the top 100 grosses as much as all other apps combined.”

Barnard talks from experience. Two of his apps have been bouncing around #30 in their respective categories (Trip Cubby in Finance, Gas Cubby in Utilities).

“I’ve spoken with other developers who have apps in the top 100 lists of various other categories,” he says. “My rough, but informed estimation: The App Store grosses between $250 and $500 million per year.”

He concludes: “I’m just floored that a company like AdMob would put out such glaringly flawed numbers.”

I’ve emailed AdMob for their take and will update if/when I get a reply.

UPDATE: Analyst Carl Howe of Yankee Group emailed to say he will soon be publishing a forecast of U.S. smartphone app store revenues, and AdMob’s $2.4 billion is much too high.

“Our numbers line up with the developers you cited, not the $2.4 billion number,” he wrote. “We don’t have numbers for publication yet. But we will really soon and they sure aren’t $2.4 billion.”

That said, the number gets really big by 2013, Howe says.

Meanwhile, AdMob emailed Om Malik to sorta defend it’s estimate. The data is publicly accessible and the methodology clearly explained, AdMob said, without putting up a spirited defense. “It is always difficult to size a fast growing market, and we view our survey results as just one of the many data points that can be used to do that,” the company said.

About the author

Leander Kahney

Leander Kahney is senior editor of Cult of Mac, editor of two books about technology culture, Cult of Mac and Cult of iPod, and has written for Wired, MacWeek, Scientific American, and The Observer in London. Follow Leander on Twitter @lkahney and Facebook.

Email the author | Read more posts by Leander Kahney.

5 Ways Sentiment Analysis is Ramping Up in 2009

5 Ways Sentiment Analysis is Ramping Up in 2009

Written by Richard MacManus / August 24, 2009 5:00 AM / 17 Comments

The New York Times has an article today about sentiment analysis, a trend which has been accelerating on the back of the Real-time Web - and Twitter in particular. Sentiment analysis is no short-term hot trend. It will eventually become a key feature of search engines, which will integrate the aggregate sentiment of the crowd into search results.

The NY Times article looked at 3 sentiment analysis tools: Scout Labs, The Financial Times' Newssift, and Jodange. It also mentioned 3 Twitter apps: Tweetfeel, Twendz and Twitrratr. In our post we take a look at five other examples of how sentiment analysis is starting to ramp up on the Web. We invite you to add more examples in the comments.

1. Social Media Monitoring and Analysis: Sysomos

sysomos_logo_jun09.pngSysomos launched its two flagship products in June: MAP ('Media Analysis Platform') and Heartbeat. As Frederic Lardinois wrote: both products are powerful (but costly) social media monitoring and analysis tools.

MAP is a powerful and flexible analysis tool. It gives its users the ability to research any topic on blogs, social media sites, and in traditional news media reports. MAP can, for example, tell you that the largest number of Twitter users who wrote about the Palm Pre come from California and Great Britain. It can also quickly give you a history of when and how often a Wikipedia article was edited, or what the most popular forum posts and YouTube videos about the any given topic were in the last 30 days. Heartbeat provides a subset of MAPs features, with a focus on making it easy for companies to track social media metrics.

See also: This Machine Eats Tweets: The System Behind @Comcast and Others

2. Conversation Monitoring: Backtype

As Marshall Kirkpatrick noted in a post from April, a whole class of technologies are emerging to help companies keep track of the conversations exploding online. For example, Backtype is an online tool that lets you search for and monitor keywords across the Web in an effort to put an end to 'comment fragmentation.' It's also used under the hood at Radian6.

backtypescreenkittens.jpg

3. Mood Analysis: LiveJournal & MoodViews

In his recent analysis Could Real Time Information Be An Unfair Advantage?, Marshall Kirkpatrick explored the connection between communication on social networks and real-world events. As an example, he pointed to a tool called MoodViews which can correlate mood messages on LiveJournal with world events. Some of the trends noted using this tool:

  • Mass increase in the level of worriedness around major weather phenomena, such as hurricane Katrina on August 29, 2005
  • Excitedness around global media and culture events, such as the release of a new Harry Potter book on July 15, 2005
  • Mass increase in the level of distress and sadness after terror attacks, as witnessed by the response to the London bombings on July 7, 2005.

MoodViews updates every 10 minutes based on LiveJournal posts. As of writing, these moods were "hot": irritated, stressed, thoughtful, cheerful, creative.


Hope was big in November 2008. Image: omnicam

See also: Feel Good: Top 10 Mood Apps and Visualizers

4. Semantic Search: Evri's New Sentiment API

Earlier this month semantic search engine Evri released a new sentiment web API that claims to understand how the web feels. As Sarah Perez wrote: while busy scouring the net for people, places, and things and determining the relationships between them, the search engine is now able to understand the feelings associated with these entities, too, be them positive or negative. Using the API, developers can build applications for things like market intelligence, market research, sports and entertainment, brand management, product reviews and more.

The sentiment API does much more than most Twitter sentiment trackers - it allows you deeper insight into the "who's," and "what's," and "why's" associated with the particular expression or feeling.

5. Twitter as Zeitgeist

How can we do a round-up of sentiment analysis tools without mentioning Twitter? Marshall Kirkpatrick wrote in March about the Twitter platform turning 3:

"Twitter already 'breaks news' faster than traditional media outlets on a regular basis and monitoring the ebb and flow of conversation is helping media, marketers and academics put their finger on the pulse of a significant number of people.

Twitscoop416.jpg
From the front page of Twitscoop.

We've seen how breaking large numbers of Twitter followers into topical groups can help make the service much, much more useful. We expect to see services launched soon that will take the pulse of topical groups. Bubbling up hot topics early in the world of physicists on Twitter, real estate agents, stock traders, etc. is a powerful tactic that more than one company will cash in on. We'll all benefit when that happens, too."

moodspin is not only allowing you to see how other are feeling, but also, it allows you to express how you feel and share it with your friends.

In the mood for reading? Mining the Web for Feelings, Not Facts - NYTimes.com #fb

Computers may be good at crunching numbers, but can they crunch feelings?

Skip to next paragraph
Peter DaSilva for The New York Times

Margaret Francis and Mars Hall of the San Francisco company Scout Labs.

Minh Uong/The New York Times

Scout Labs tracks positive and negative sentiments about keywords like “cash for clunkers.”

The rise of blogs and social networks has fueled a bull market in personal opinion: reviews, ratings, recommendations and other forms of online expression. For computer scientists, this fast-growing mountain of data is opening a tantalizing window onto the collective consciousness of Internet users.

An emerging field known as sentiment analysis is taking shape around one of the computer world’s unexplored frontiers: translating the vagaries of human emotion into hard data.

This is more than just an interesting programming exercise. For many businesses, online opinion has turned into a kind of virtual currency that can make or break a product in the marketplace.

Yet many companies struggle to make sense of the caterwaul of complaints and compliments that now swirl around their products online. As sentiment analysis tools begin to take shape, they could not only help businesses improve their bottom lines, but also eventually transform the experience of searching for information online.

Several new sentiment analysis companies are trying to tap into the growing business interest in what is being said online.

“Social media used to be this cute project for 25-year-old consultants,” said Margaret Francis, vice president for product at Scout Labs in San Francisco. Now, she said, top executives “are recognizing it as an incredibly rich vein of market intelligence.”

Scout Labs, which is backed by the venture capital firm started by the CNet founder Halsey Minor, recently introduced a subscription service that allows customers to monitor blogs, news articles, online forums and social networking sites for trends in opinions about products, services or topics in the news.

In early May, the ticket marketplace StubHub used Scout Labs’ monitoring tool to identify a sudden surge of negative blog sentiment after rain delayed a Yankees-Red Sox game.

Stadium officials mistakenly told hundreds of fans that the game had been canceled, and StubHub denied fans’ requests for refunds, on the grounds that the game had actually been played. But after spotting trouble brewing online, the company offered discounts and credits to the affected fans. It is now re-evaluating its bad weather policy.

“This is a canary in a coal mine for us,” said John Whelan, StubHub’s director of customer service.

Jodange, based in Yonkers, offers a service geared toward online publishers that lets them incorporate opinion data drawn from over 450,000 sources, including mainstream news sources, blogs and Twitter.

Based on research by Claire Cardie, a Cornell computer science professor, and Jan Wiebe of the University of Pittsburgh, the service uses a sophisticated algorithm that not only evaluates sentiments about particular topics, but also identifies the most influential opinion holders.

Jodange, whose early investors include the National Science Foundation, is currently working on a new algorithm that could use opinion data to predict future developments, like forecasting the impact of newspaper editorials on a company’s stock price.

In a similar vein, The Financial Times recently introduced Newssift, an experimental program that tracks sentiments about business topics in the news, coupled with a specialized search engine that allows users to organize their queries by topic, organization, place, person and theme.

Using Newssift, a search for Wal-Mart reveals that recent sentiment about the company is running positive by a ratio of slightly better than two to one. When that search is refined with the suggested term “Labor Force and Unions,” however, the ratio of positive to negative sentiments drops closer to one to one.

Such tools could help companies pinpoint the effect of specific issues on customer perceptions, helping them respond with appropriate marketing and public relations strategies.

For casual Web surfers, simpler incarnations of sentiment analysis are sprouting up in the form of lightweight tools like Tweetfeel, Twendz and Twitrratr. These sites allow users to take the pulse of Twitter users about particular topics.

A quick search on Tweetfeel, for example, reveals that 77 percent of recent tweeters liked the movie “Julie & Julia.” But the same search on Twitrratr reveals a few misfires. The site assigned a negative score to a tweet reading “julie and julia was truly delightful!!” That same message ended with “we all felt very hungry afterwards” — and the system took the word “hungry” to indicate a negative sentiment.

While the more advanced algorithms used by Scout Labs, Jodange and Newssift employ advanced analytics to avoid such pitfalls, none of these services works perfectly. “Our algorithm is about 70 to 80 percent accurate,” said Ms. Francis, who added that its users can reclassify inaccurate results so the system learns from its mistakes.

Translating the slippery stuff of human language into binary values will always be an imperfect science, however. “Sentiments are very different from conventional facts,” said Seth Grimes, the founder of the suburban Maryland consulting firm Alta Plana, who points to the many cultural factors and linguistic nuances that make it difficult to turn a string of written text into a simple pro or con sentiment. “ ‘Sinful’ is a good thing when applied to chocolate cake,” he said.

The simplest algorithms work by scanning keywords to categorize a statement as positive or negative, based on a simple binary analysis (“love” is good, “hate” is bad). But that approach fails to capture the subtleties that bring human language to life: irony, sarcasm, slang and other idiomatic expressions. Reliable sentiment analysis requires parsing many linguistic shades of gray.

“We are dealing with sentiment that can be expressed in subtle ways,” said Bo Pang, a researcher at Yahoo who co-wrote “Opinion Mining and Sentiment Analysis,” one of the first academic books on sentiment analysis.

To get at the true intent of a statement, Ms. Pang developed software that looks at several different filters, including polarity (is the statement positive or negative?), intensity (what is the degree of emotion being expressed?) and subjectivity (how partial or impartial is the source?).

For example, a preponderance of adjectives often signals a high degree of subjectivity, while noun- and verb-heavy statements tend toward a more neutral point of view.

As sentiment analysis algorithms grow more sophisticated, they should begin to yield more accurate results that may eventually point the way to more sophisticated filtering mechanisms. They could become a part of everyday Web use.

“I see sentiment analysis becoming a standard feature of search engines,” said Mr. Grimes, who suggests that such algorithms could begin to influence both general-purpose Web searching and more specialized searches in areas like e-commerce, travel reservations and movie reviews.

Ms. Pang envisions a search engine that fine-tunes results for users based on sentiment. For example, it might influence the ordering of search results for certain kinds of queries like “best hotel in San Antonio.”

As search engines begin to incorporate more and more opinion data into their results, the distinction between fact and opinion may start blurring to the point where, as David Byrne once put it, “facts all come with points of view.”

____________________
This is another great example for how important moods and feelings are.
It also shows the great financial potential in understanding current moods and serving relevant services/products in real time.

At moodspin we are working hard to create the best experience for people to share their moods and feelings, as well as learning how their friends are feeling.

In the future, we are planning to provide additional services, relevant for our community members, and based on their feedback.

If you have an idea, please share it with as on http://www.moodspin.com/feedback

:-)

Introducing my latest project - moodspin - (and I need your help) - #fb

Hi,


I am very excited to share the news about my latest activities with you.

I am not sure if you know, but I have been working on my own company in the past few months.


My new company is called moodspin, and its website went live today in beta version: http://www.moodspin.com

(today is also my birthday, so I am very excited about it! so think about it as a birthday present to myself...).

 

What is moodspin all about?

moodspin develops social media add-ons, that allow you to update your mood easily and visually on your social media sites, and to easily learn how your friends are feeling.

 

Today, I'm announcing the first phase, which includes integration with Twitter.


The brand-new Beta site (http://www.moodspin.com), provides an easy way for you to update your friends about your moods and activities - going beyond text, it actually updates your user image (not drastically, it either adds a colored frame to your image, or a little emoticon at the bottom), and also lets you write about your mood and status.

 

Using moodspin, your friends will always know the mood you are in, and you could know how they feel, in real time.

 

To keep it simple, you don’t have to create a user name for moodspin – just log in using your Twitter account, and you are in!

 

How can you help?

Please check out the site at http://www.moodspin.com, and tell all your friends about it.

I would love to hear your thoughts and suggestions – this is an evolving project (my next phase is improving this version, creating an iPhone app and a Facebook app – do you have other ideas?).


You can DM or eMail me directly, or use the feedback form on the site (http://www.moodspin.com/feedback).

 

Also - please follow moodspin on Twitter and spread the word.

 

Thank you for sharing this great experience with me.

 

:-)

 

Etay

Facebook Grew Twice As Fast As Twitter In July - could it be performance/downtime related?

Facebook Grew Twice As Fast As Twitter In July
by Erick Schonfeld on August 12, 2009

If it wasn’t bad enough that Facebook bought FriendFeed on Monday and turned on real-time search to better compete against Twitter in the Stream Wars, and is playing around with a lite version that resembles Twitter even more, now Twitter really has something to worry about. Facebook is growing faster than Twitter in the U.S., even though it is more than four times larger.

In the month of July, according to the latest estimates from comScore, Facebook attracted 87.7 million unique visitors in the U.S., which was 14 percent higher than in June, 2009. Twitter, in contrast, only saw 21.2 million unique U.S. visitors to its Website, a 6 percent rise compared to the month before. In absolute terms, Facebook added about ten million new visitors in the month of July versus roughly one million new visitors for Twitter.

At 87.7 million uniques, Facebook moves from the sixth largest Web media property in the U.S. to the fifth, passing the combined sites of Fox Interactive Media (80.9 million uniques) and coming within striking range of AOL (104.8 million). That is just in the U.S. Facebook is already the fourth largest site in the world (and Twitter is doing better worldwide as well, with a total of 44.5 million unique visitors in June).

Note that these estimates are only for Twitter.com and do not include mobile or desktop clients such as Tweetdeck, Seesmic, or Tweetie, but it should be a good proxy for overall growth. Even if you double the numbers for Twitter, Facebook still trounced it in July (and the Facebook numbers don’t include activity on other sites other apps via Facebook Connect either).

These are month-over-month comparisons. On an annual basis, Twitter is still growing its audience much faster (2,614 percent ) than Facebook (124 percent) because it is coming off such a smaller initial base of users and this was the year it entered hypergrowth. But that hypergrowth seems to have slowed since the end of April, at least in the U.S. Between April and July, Facebook grew 30 percent in unique U.S. visitors, while Twitter only grew 25 percent, so it is more than just a one-month aberration.

So what happened in June to accelerate Facebook’s growth? I don’t think it was the vanity URLs. Rather, on June 24, Facebook turned on the “Everyone Button.” Facebook members who didn’t have public profiles (i.e. most people) all of a sudden had the option to share items in their stream with everyone else on Facebook, and they could decide to do this on an item-by-item basis.

The more items that are shared publicly, the more people who can see them. I believe this is what happened (and have asked Facebook for confirmation). Not only did this drive more people to Facebook, but it also increased the time spent on the site by a whopping 36 percent in June versus July. Twitter saw its time on site grow 26 percent in the same period, although in the chart comparing the two below you can hardly tell because Facebook users spent an estimated total of 15.8 billion minutes compared to 4.75 million minutes for Twitter. What that tells me is that the stream becomes more engaging the more public it becomes.

BBC NEWS | UK | Technology, Twitter and the downturn #fb

Technology, Twitter and the downturn

When faced with making financial cutbacks only the bare essentials of food and personal hygiene come out ahead of the electronic necessities of life, such as mobiles, broadband and TV.

That at least is the picture painted by Ofcom's latest report into the communications industry. Over 850 people were asked to rank their most favoured options when it comes to financial belt-tightening.

graph

Social networking sites such as Facebook and MySpace are still growing, while one of the pioneers in the field, Friends Reunited, whose sale for £25m was announced on Thursday, saw traffic rise by 11% since last year. In contrast, the once-hyped site Second Life saw its traffic decline by 67%.

Graph

Social networking has become more popular with older age groups. Those aged between 25-54 have been accessing sites more over the past 12 months, while the interest of 15-24 year olds has taken a tumble, dropping five percentage points over the same period.

bar chart

The statistics on the rise of the micro-blogging site Twitter speak for themselves. Since the start of 2009 its audience has jumped upwards, helped, no doubt, by its users' role in reporting on high-profile news stories like the Hudson River plane crash in January and its use by celebrities.

Graph

The report can be read in full here .