They say it takes money to make money, but it you want to be in the top 100 apps in the Apple (s aapl) App Store, it’s gonna take you $1,875 per day to buy enough ads, according to a report out today from AdWhirl. The company, which operates an advertising platform for the iPhone (and would love to sell more ads, presumably), looked at how to propel iPhone apps into the upper echelon of popularity without spending too much on advertising. Instead of spending almost $2,000 a day, the study found that releasing a free app seems to help drive usage. That use, in turn, gives developers a target market to which they can advertise a paid app, or capitalize on for viral growth. Other findings include:
- Untargeted cross-promotions generate conversions at approximately 0.2 percent or less from each impression (20 downloads for every 10,000 ads displayed).
- Targeted cross-promotions convert at approximately three times or more.
- Free apps with fewer features that can be upgraded to paid apps can increase sales up to five times, without cannibalizing sales of the paid version.
- It only takes about 2,500 downloads per day to break into the Top 100 Apps.