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The History of App Pricing And Why Most Apps Are Free
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By [x]cube LABS
Published: Jun 17 2015
Mobile apps have changed everything- from the way we live, connect, entertain to the way we work. Pick any interest, subject, topic or activity and you have an app for that. Thousands of apps are added every day to various app stores and the app user base continues to grow. Recent data from various sources suggests, an Apple user downloads around 6.2 apps every month while the Google Play user downloads 4.1 apps per month.
Over the years, with increase in app usage, we have also witnessed significant shifts in app user behavior and app developer revenue model. However, one fact remains as it was- the majority of apps in the stores are free or are priced very low.
Users love free apps
As a mobile app developer, if you think your users hate seeing ads on their apps then you are right? However, if based on the above fact, you think that the users are ready to pay for an ad-free experience then there are not many takers. The Digital Advertising Alliance (DAA) with Zozby Analytics conducted a survey of 1,015 Americans which reveals that 58% respondents preferred free, ad-supported apps to those than paid apps. Further, when asked if they would download the existing apps if they were required to pay, 46% said they wouldn’t download the apps.
If you look at the download download distribution of Android apps by price category, you will find that it’s really tough for paid apps to cross 5000 downloads.
Source-Appbrain.com
Users are in no mood to pay
The above data certainly provide overwhelming evidence to suggest that the users as much as they dislike in-app ads, but the vast majority of them, be it an iPhone or an Android user, would rather tolerate them rather than pay for an app. The Freemium model, wherein a user gets the basic version of the app for free and later have to pay for advanced versions is gaining some traction, especially in games and productivity apps, but paid apps from other categories rarely match the success of free apps. Mobile app developers and publishers have to continue exploring new revenue models to make money from their apps. The user is in no mood to pay.
Tags: mobile apps
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