App-o-Day seeing 3x growth rate for its app promotion service

Daily app promotion service App-o-Day, the first new product from former Outfit7 chief executive Andrej Nabergoj, is seeing a 3x growth rate.

The service, which aims to be a “Groupon for apps”, provides users with daily deals that see paid iOS apps go free, or free apps give away packages of virtual currency. The service launched in March after raising $3.5 million in funding for App-o-Day’s parent company Iddiction from Rick Thompson, Highland Capital Partners and others.

We met with Billy Shipp, Iddiction’s VP of growth at the end of June. According to Shipp, App-o-Day’s daily growth rate in June was 3x that of our daily growth rate in May. “Every campaign we run gets bigger and bigger,” he said.

Shipp declined to share how many downloads on average an app being promoted through the service would see, citing App-o-Day’s growth rate. “If I gave you those numbers, they would be different in two weeks, in four weeks and again in six weeks. When you’re seeing a tripling of your growth rate on a daily basis, it could be significantly different,” he explained.

While App-o-Day is remaining tight lipped about its performance for now, it is possible to see the impact of a promotion by looking at an app’s performance using our traffic tracking service AppData.

App-o-Day’s featured app on July 11 was Booyah’s Early Bird, a title that typically retails for $1.99. According to AppData, the title was the No. 287 free app on the day of its feature, and climbed to No. 64 on July 12. As of today, the app is the No. 87 free iPhone app.

According to Shipp, App-o-Day is superior to other app promotion services because it only promotes one app at a time.

“By being able to focus on one thing, we provide more value to the developer and the user,” he explained, pointing out that because the service doesn’t dilute its recommendations across several titles simultaneously, users have an easier time deciding to download an app.

Of course, while App-o-Day is growing quickly, what makes it an effective marketing tool also makes it impossible to scale — by its very design, the service can only promote one app per day, and Shipp tells us the company is already turning down more apps than it accepts.

“As App-o-Day gets more and more effective, the price that we have to charge goes up because of the level of distribution we provide,” said Shipp. “We have to figure out a way to make it affordable for independent developers, without undervaluing the service we provide.”

Update: We have updated this story with revised wording from Shipp, who reached out to clarify the earlier figures he had provided us.