Consumers Less Willing to Pay for Content as Free Apps Surge

Thursday July 18, 2013 10:30 am PDT by Juli Clover

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.

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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.

Top Rated Comments

nepalisherpa

133 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.

Score: 39 Votes (Like | Disagree)

ziggyonice

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.

Score: 34 Votes (Like | Disagree)

kwikdeth

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.

Score: 13 Votes (Like | Disagree)

diddl14

Let's put that a bit in perspective:

Score: 10 Votes (Like | Disagree)

sundog925

If people are to cheap to spend .99 cents on a $600+ phone and probably $50/month plan, then why even have the phone?

friedmud

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...

Score: 8 Votes (Like | Disagree)

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