Nepali app developers see prospects, face several constraints -
RUdra Pangeni
App developers in Nepal are seeing great prospects in recent years thanks to proliferation of smart devices and increasing penetration of Internet.
“We have seen huge potentials. The rise in number of smart phones is encouraging us,” Subash Sapkota, CEO of bidhee, said.
Apps developed by bidhee, including Hamro Patro, Hamro Keyboard and Nepali English Dictionary, have more than 2 million users.
“We can reap more benefits by targeting global population,” added Sapkota.
Number of smartphone users is growing with every passing year. Conservative estimates show around 15-18 percent of the country’s total population use smart devices. Internet penetration currently stands at 37 percent of total population.
Deepak Adhikari, a telecommunications engineer, has been using a number of Nepali apps in his smartphone. These apps help him to know about load-shedding hours, share prices and other recent happenings from around the world.
To cater to users like Adhikari, most of the banks, media houses, and telecommunication services have introduced their mobile apps in different platform. These apps have received positive response from users. Many have also started promoting themselves through social media like Facebook.
The major revenue of app developers is advertising revenue from firms like Google. Their revenue depends on number of users and user engagements. But as the market size is small, app developers are struggling to get more revenue.
Of late, many developers are targeting the global market by developing apps with global appeal. According to bidhee, around 70 percent of users of Hamro Patro are Nepalis living in friend land. This shows that some Nepali app developers are already looking into the global market.
“Many Nepali firms are adopting traditional models to advertise their products and services,” Sapkota said, adding, “Digital advertisement platform provides them an opportunity to tap niche market with defined age group, professions and other population composition. It ensures their reach to the targeted groups.”
Adhikari feels Nepali firms are yet to realize value of proper marketing through research. “Many firms are starting businesses without proper planning. These firms do not know the benefits that effective advertising brings,” he added.
Google and other advertising networks pay apps on the basis of active users using the app. Google pays 55 percent of the advertising revenue generated by the app to the developers. App developers receive payments from money transfer firms like Western Union. Had there been electronic payment system, they would have received the amount directly in their bank accounts.
Biswas Dhakal, CEO of F1soft International, said Asia alone earns 41 percent of revenue from global app business. This shows there is a huge opportunity for Nepali people, he added.
PROBLEMS
App developers have their own problems to share. In the absence of effective payment gateway, they have to use their contacts residing in foreign countries to pay fee to upload their apps in stores like Google Play store and App Store.
Similarly, lack of digital awareness as well as increasing load-shedding hours is another problem being faced by app developers.
“Local app developers have to ask their relatives to pay the fee while opening account in Google Play and App Store. Because of difficulties like these, many developers are migrating to foreign countries looking for better opportunities,” added Sapkota.
GOVERNMENT LOSING REVENUE
App developers say annual turnover of Nepali apps, including digital advertisement network and different outsourced project from around the, world is estimated at more than Rs 10 million. Though some apps are being sold at good price, such transactions have yet to bring under tax net. But the government is not doing anything to plug such loopholes.
“If the government puts in place an electronic payment gateway, Nepali information technology (IT) sector can go global. App developers can develop paid apps and upload them into Google Play and App Store,” Sapkota said, adding: “Many developers are focusing on free apps because of the lack of payment gateway.”
He also said this will also help bring all such transactions under tax net.
WHAT NEXT?
Experts have emphasized the need to develop quality that can provide an array of services to users as well as.
“One should firs know about their target users, their advertisement base and engagement tools,” Dhakal said.
Visiting Tommy Karl Palm, the man behind the popular gaming app Candy Crush Saga, during his recent Nepal visit had said that the most important thing an app developer should do is to identify their target audience. “After developing app, one should test app on the target audience and see how they react. Also, the developer should not forget that the app should always be unique,” he had said.
Integrating apps with social media is one of the ways to make apps more effective. “Not all apps can be paid app. They should be made for higher engagement of users,” Dhakal said.
Dhakal’s firm has introduced ‘Cash On Ad’, targeting mobile phone users. But they couldn’t get advertisement as per their expectations. “Many Nepali business firms are not aware of the value of digital marketing and advertising apps like Cash On Ad,” he added.
from Republica
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RUdra Pangeni
App developers in Nepal are seeing great prospects in recent years thanks to proliferation of smart devices and increasing penetration of Internet.
“We have seen huge potentials. The rise in number of smart phones is encouraging us,” Subash Sapkota, CEO of bidhee, said.
Apps developed by bidhee, including Hamro Patro, Hamro Keyboard and Nepali English Dictionary, have more than 2 million users.
“We can reap more benefits by targeting global population,” added Sapkota.
Number of smartphone users is growing with every passing year. Conservative estimates show around 15-18 percent of the country’s total population use smart devices. Internet penetration currently stands at 37 percent of total population.
Deepak Adhikari, a telecommunications engineer, has been using a number of Nepali apps in his smartphone. These apps help him to know about load-shedding hours, share prices and other recent happenings from around the world.
To cater to users like Adhikari, most of the banks, media houses, and telecommunication services have introduced their mobile apps in different platform. These apps have received positive response from users. Many have also started promoting themselves through social media like Facebook.
The major revenue of app developers is advertising revenue from firms like Google. Their revenue depends on number of users and user engagements. But as the market size is small, app developers are struggling to get more revenue.
Of late, many developers are targeting the global market by developing apps with global appeal. According to bidhee, around 70 percent of users of Hamro Patro are Nepalis living in friend land. This shows that some Nepali app developers are already looking into the global market.
“Many Nepali firms are adopting traditional models to advertise their products and services,” Sapkota said, adding, “Digital advertisement platform provides them an opportunity to tap niche market with defined age group, professions and other population composition. It ensures their reach to the targeted groups.”
Adhikari feels Nepali firms are yet to realize value of proper marketing through research. “Many firms are starting businesses without proper planning. These firms do not know the benefits that effective advertising brings,” he added.
Google and other advertising networks pay apps on the basis of active users using the app. Google pays 55 percent of the advertising revenue generated by the app to the developers. App developers receive payments from money transfer firms like Western Union. Had there been electronic payment system, they would have received the amount directly in their bank accounts.
Biswas Dhakal, CEO of F1soft International, said Asia alone earns 41 percent of revenue from global app business. This shows there is a huge opportunity for Nepali people, he added.
PROBLEMS
App developers have their own problems to share. In the absence of effective payment gateway, they have to use their contacts residing in foreign countries to pay fee to upload their apps in stores like Google Play store and App Store.
Similarly, lack of digital awareness as well as increasing load-shedding hours is another problem being faced by app developers.
“Local app developers have to ask their relatives to pay the fee while opening account in Google Play and App Store. Because of difficulties like these, many developers are migrating to foreign countries looking for better opportunities,” added Sapkota.
GOVERNMENT LOSING REVENUE
App developers say annual turnover of Nepali apps, including digital advertisement network and different outsourced project from around the, world is estimated at more than Rs 10 million. Though some apps are being sold at good price, such transactions have yet to bring under tax net. But the government is not doing anything to plug such loopholes.
“If the government puts in place an electronic payment gateway, Nepali information technology (IT) sector can go global. App developers can develop paid apps and upload them into Google Play and App Store,” Sapkota said, adding: “Many developers are focusing on free apps because of the lack of payment gateway.”
He also said this will also help bring all such transactions under tax net.
WHAT NEXT?
Experts have emphasized the need to develop quality that can provide an array of services to users as well as.
“One should firs know about their target users, their advertisement base and engagement tools,” Dhakal said.
Visiting Tommy Karl Palm, the man behind the popular gaming app Candy Crush Saga, during his recent Nepal visit had said that the most important thing an app developer should do is to identify their target audience. “After developing app, one should test app on the target audience and see how they react. Also, the developer should not forget that the app should always be unique,” he had said.
Integrating apps with social media is one of the ways to make apps more effective. “Not all apps can be paid app. They should be made for higher engagement of users,” Dhakal said.
Dhakal’s firm has introduced ‘Cash On Ad’, targeting mobile phone users. But they couldn’t get advertisement as per their expectations. “Many Nepali business firms are not aware of the value of digital marketing and advertising apps like Cash On Ad,” he added.
from Republica
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