So I am trying to figure something out which I am sure is on the mind of all of us.
First let me say, I am an app developer, specifically with focus on "free games" with in-app purchases.
I have about $25,000 to spend on marketing of the games, or specifically a game, but can't figure out something.
So lets say with $20k I am able to get the game into TOP 25 overall in USA. Math-wise that is possible to happen by incentivized downloads. So now the game is in the top for a day, IF the game is good, then i just hope organically it will stay for about 1 week. Judging by history of other popular games, usually you can stay in TOP 25 overall for about 7-9 days and then continue to be in TOP 50 overall for another 12-15 days.
My question is simple:
How do you justify spending $5k, $10k, or any amount of money and make money back?
Yes yes, I know we are all passionate about making apps... but the bottom line is don't we also want to make money as well?
And we know that you can make money via IAPs and also via ad networks, etc... But we also know a fact that about 2% of the downloads will earn you IAP dollars, and about 1% will earn you ad revenue.
So clearly the math does not work at all. You spend $5k lets say, and will the game make back $5k? Or even if you follow the laws of large numbers and spend $25k on marketing, will the game bring back the $25k over its lifetime?
Can anyone shed some light on this subject?