Millions of applications are already live in Apple's App Store and Google Play Store, and thousands more are launched every month. A study conducted last year by App Annie find that when people are on their phones, they spend most of their time in the application. And that's true all over the world:
As leading mobile app development companies in Bangalore, we eat these statistics such as Corn Flakes!
We have a passion for apps and love to see the joy we bring to the application.
Honestly, we could sit here and study mobile statistics and data throughout the day - and have fun doing it - but the number does not serve the purpose in our business if we do not understand why and how behind them. And today, we wanted to see why behind the price of mobile applications.
Free apps, app subscription ... what is the problem? What customers are interested? How do you decide how to price the app? These are the questions we want to answer!
A separate study we came across by App Annie projected that by 2020, the global application store revenue will grow to $ 101.1 billion.
As application developers, we eat these statistics such as Corn Flakes!
We have a passion for apps and love to see the joy we bring to the application.
Honestly, we could sit here and study mobile statistics and data throughout the day - and have fun doing it - but the number does not serve the purpose in our business if we do not understand why and how behind them. And today, we wanted to see why behind the price of mobile applications.
Free apps, app subscription ... what is the problem? What customers are interested? How do you decide how to price the app? These are the questions we want to answer!
A separate study we came across by App Annie projected that by 2020, the global application store revenue will grow to $ 101.1 billion.
Types Of Mobile Pricing Strategies
Free
Who does not like free? I could hear my mother now: "You do not get much for free these days." And it's true - you do not! That's why it's always a pleasant surprise when something is labeled "free."
But do consumers expect apps to be free?
Offering free app is one of the most effective model, especially if you plan to attract a lot of users. But how do you make money?
Well, maybe it is not the purpose of your application - not directly, at least. There are two types of pricing strategies for free. Which one you choose depends on the purpose of your application:
Free: These applications typically act as add-ons to the product or service is established. The goal is not to make money directly from the application, but to encourage people to other revenue streams. For example, your application may offer a coupon to buy a product on your website, driving people there to keep up.
The company also makes free application to facilitate customer service and to assist in customer retention. banking applications, for example, make it easier and more convenient for clients to manage their finances on the go. In this application, customers can often receive or activate additional offers, such as free overdraft or credit limit increases. Services eventually make money for the bank (and make customers happy), even if the application itself does not have a price tag.
In advertising application: The application platform for advertising revenue. Advertisers rent space in your application, and people see these ads when they use your app - but the app is still free to download.
If you've ever used a game app, you may be using an app with advertisements in the app. Weather Network app is another application that is known to display ads across the interface.
What To Keep In Mind
With the free app, you can usually get users quickly. A good free application can be quickly pushed consumer awareness and engagement, and defend it. But if you do not get your desired user base - and you rely on in-app advertising revenues - will be difficult to keep your applications running and profitable.
Users download the free app normally expect to deal with ads, but they still want your ad to be relevant to them and the application. Ensuring ads in applications and non-intrusive draw is a good way to keep users happy. Google AdMob is one of the services offered to Android and iOS developers that allows you to filter ads by user applications of relevance and ad formats (ie banners, full page, etc.). Customization and monitoring is the key to not annoy your users and encourage them to save on application.
Freemium
With a freemium pricing model, the application is free to download, but there are additional levels, features or incentives in the application that the user can choose to pay.
There are three main types of freemium apps:
Users download the application for free but have to pay for the rise in the level of access premium features, get booster (for example additional life), or use the currency in the application. These are all common in gaming applications.
The application comes with all the features and functionality for free, but for a limited time. After that, users have to pay to continue using the application as they have been.
The application is free and contains ads, but users have the option to pay a one-time fee to have the ad removed.
A good example of the application freemium is HoursTracker, which serves as a mobile timesheet. Free basic applications in the App Store, but users can pay to upgrade to a Personal Edition or the Pro Edition.
What To Keep In Mind
A freemium apps have gone better ... or not so good, depending on how it is positioned. Some people expect a free application to have the full functionality and disappointed when their access is limited.
This exact problem caused a stir back in 2015. As a result, Apple's dedicated an entire section in the app store for games without hidden in-app purchases. They call it "Pay Once and Play."
If done well, the freemium app can act as an endless source of revenue for your company; but, as with the free app, freemiums works well when your goal is to attract a lot of users
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