Mobile Apps - US - October 2014
“The majority of mobile app users do not download paid apps, while the abundance of free apps now available has filled mobile marketplaces with a plethora of options. Getting consumers engaged with an app is only half the battle – drawing revenue from that engagement may be an even greater challenge. While mobile apps can focus on users who are most likely to pay for features, the value of free users should not be ignored, as these consumers will help to build awareness among their friends and other connections.”
- Bryant Harland, Technology and Media Analyst
This report looks at the following issues:
- Free vs paid app downloads
- Competing for app users’ limited time
- The hardware fragmentation problem
- Although free app downloads benefit from a considerably larger audience than those of paid apps, the share of consumers who show willingness to pay for mobile software is not negligible. Furthermore, mobile apps can increase revenue per user by implementing enticing premium features, given the high share of paid mobile app users who reported purchasing additional content.
- Given the limited time that the majority of users spend with apps, mobile software will benefit from creating seamless experiences between sessions. Features that enable users to pick up where they left off will be valuable for maintaining consumers’ attention, as this ensures that they can easily access the content and features they want.
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