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Consumers Less Willing to Pay for Content as Free Apps Surge
According to a new report from mobile analytics firm Flurry, free apps supported by ads and/or in-app purchases are becoming an increasingly popular choice for developers and consumers alike, with 90% of iOS apps now being offered for free. In 2012, that number was just 84%, marking a 6% increase over the past year.
iPad apps have traditionally been more expensive with developers charging a higher premium for more screen real estate, which caused the average iPad app price to be a good deal higher than Android or iPhone apps at $0.50. iPad apps, on average, are priced 2.5 times higher than iPhone apps and eight times higher than Android apps.
Due to the uptick in free apps, Flurry suggests that consumer behavior indicates ad-supported content will continue to surge, and that ads in apps are a "sure thing for the foreseeable future."
Flurry collects its data from the more than 350,000 people that access its Flurry Analytics tools.
Some might argue that this supports the idea that "content wants to be free". We don’t see it quite that way. Instead, we simply see this as the outcome of consumer choice: people want free content more than they want to avoid ads or to have the absolute highest quality content possible.Flurry also compared the pricing of both Android apps and iPhone and iPad apps, finding that iOS users are generally more willing to pay for content. The average Android app price as of April 2013 was $0.06, while the average iPhone app price was $0.19.
iPad apps have traditionally been more expensive with developers charging a higher premium for more screen real estate, which caused the average iPad app price to be a good deal higher than Android or iPhone apps at $0.50. iPad apps, on average, are priced 2.5 times higher than iPhone apps and eight times higher than Android apps.
Due to the uptick in free apps, Flurry suggests that consumer behavior indicates ad-supported content will continue to surge, and that ads in apps are a "sure thing for the foreseeable future."
Flurry collects its data from the more than 350,000 people that access its Flurry Analytics tools.
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21 months ago
Unfortunately, we will see more apps that are ad-supported AND with crazy numbers of in-app purchases. I would rather pay for full app or have apps that are only ad-supported (i.e. no in-app purchases). I think the concept of "in-app purchase" is getting out of hand with many applications.
21 months ago
I hate this new ecosystem.
Free-to-play (more like pay-to-win) games and subscription based apps... I hate having to shell out money every time I want to continue, or pay yet another bill every month. I honestly wonder if the "free app" world is a bubble getting ready to burst. How long will it be before people realize that most of the free apps out there are just glorified Facebook games making a comeback?
Have you seen Plants vs Zombies 2? Ridiculous:
I'll gladly pay a higher price for a quality application. I want to buy it and be done, not nickeled and dimed. But in the world of DLC, free-to-play, subscriptions, online passes and always-online, I just don't have the interest in purchasing something I can't own and keep forever.
But alas, we are the minority. And they are the sheep.
Free-to-play (more like pay-to-win) games and subscription based apps... I hate having to shell out money every time I want to continue, or pay yet another bill every month. I honestly wonder if the "free app" world is a bubble getting ready to burst. How long will it be before people realize that most of the free apps out there are just glorified Facebook games making a comeback?
Have you seen Plants vs Zombies 2? Ridiculous:
I'll gladly pay a higher price for a quality application. I want to buy it and be done, not nickeled and dimed. But in the world of DLC, free-to-play, subscriptions, online passes and always-online, I just don't have the interest in purchasing something I can't own and keep forever.
But alas, we are the minority. And they are the sheep.
21 months ago
It just sucks that a good chunk of app developers in my experience make free apps with ads and no buy-in upgrade or paid version without ads. I simply cant stand advertising and more often than not will avoid apps with ads in them.
21 months ago
If people are to cheap to spend .99 cents on a $600+ phone and probably $50/month plan, then why even have the phone?
21 months ago
I don't think the conclusion is correct. Many apps are going to a model where the App itself is "free" but you pay for content within the App. This means that on average more "free" apps will be purchased... but it doesn't mean people are spending less money on Apps.
Look at Real Racing 3... I bought RR1 and RR2... but RR3 is "free" and then you buy stuff in the game with real money. I didn't download it because it was "free" I got it because RR1 and RR2 were good games. If it would have cost money I would have bought it as well.
Personally, I'm not a fan of this model. I prefer to buy something up front instead of getting nickel and dimed... but with how popular this model is becoming it must work...
Look at Real Racing 3... I bought RR1 and RR2... but RR3 is "free" and then you buy stuff in the game with real money. I didn't download it because it was "free" I got it because RR1 and RR2 were good games. If it would have cost money I would have bought it as well.
Personally, I'm not a fan of this model. I prefer to buy something up front instead of getting nickel and dimed... but with how popular this model is becoming it must work...
21 months ago
Not to be a total dweeb, but it is not a 6% increase. It's 7.1% (6/84*100). You could say the percentage of free apps is 6 percentage points higher, but the increase is 7.1%
I hate myself...math goofs drive me goofy (er)
I hate myself...math goofs drive me goofy (er)
21 months ago
This is just what Apple wants. Free or very cheap apps make buying an iOS device that much more attractive. Unless income can be made via advertising or some other sort of way it kind of stinks for developers.
Exactly. Apple's support of their developers is becoming more and more questionable. As hardware becomes more indistinguishable, Apple should be trying to differentiate themselves with software, "Only on iOS".
Yet... the App Store primarily promotes free crapware with insane $99.99 in-app purchases. They are in a race to the bottom with Android.
Instead, they should promote quality software, that is only on iOS. The App Store has become useless as a means to find quality software. That is why consumers don't even want to pay $0.99, there's a 80% chance the app will suck.
:mad:
:apple:
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Buyers have become more weary of purchasing app's that later didn't fulfill their needs and would rather a free app with ads. It's a shame developers cannot offer a trial mode via the App Store, forcing them to offer trial versions on their own site or two versions via the App Store, one free for trial and one paid.
Agree. But that is the role that In-App purchases attempts to fill.
Unfortunately it is abused to no end.
:apple:
21 months ago
This is just what Apple wants. Free or very cheap apps make buying an iOS device that much more attractive. Unless income can be made via advertising or some other sort of way it kind of stinks for developers.
21 months ago
But alas, we are the minority. And they are the sheep.
Don't give up, fight the good fight. There are many of us who agree, we need to vote with our dollars and write Apple and developers. If we don't, nothing will change.
Adobe is feeling it with their move to CC subscriptions. Torrent sites are riddled with CC app's, utilizing the same hacks as years before. It won't deter pirating, in fact there's been a rise in pirating with these new business models.
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