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New App Study Looks Into Free Vs Paid Apps

Apr 5 2014, 1:09am CDT | by , in Rumors | Apple

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Free Vs Paid Apps
Photo Credit: MacNN

“Freemium” apps come out on top when it comes to revenue.

The App Store is a big money maker for a lot of developers. Trying to find the best way to make more money is a world all of its own, but a new survey has given a lot of insight into what customers want and what they are willing to pay for.

Apple Balla reports that, according to a survey done by Wild Tangent and IHS Technology, the vast majority of users much prefer what they called “freemium” apps over traditional paid apps. Freemium apps support ads and the ability to pay for upgrades after trying it out for free. 86 percent of people in fact would rather have a chance to try out a game before they purchase it, rather than paying out of pocket for something that they are unsure about.

It’s easy to see this in action if you take a look at the 50 top grossing apps in the App Store currently. Out of those applications, 43 rely on a Freemium design to bring in revenue. Not only that, but they are consistently producing almost twice as much as many of their competitors who charge for the app.

This isn’t to say that the paid app market is going to be going away any time soon. It does mean that more people might start switching to the Freemium model in the future, though. With all of the potential money to be made, it should come as no surprise that App developers are willing to do whatever they can to increase their profits.

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