Freemium apps with ads more popular than paid and ad-free | Brands | Mobile Entertainment

Freemium apps with ads more popular than paid and ad-free

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Phil Tottman

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Brands / Advertising / March 27th 2014 at 3:29PM

Developers need to think about what market they are entering before deciding on how they’ll make money.

Freemium and in-app ad models grew by 2.1 times and 1.6 times respectively between 2012 and 2013, making them more popular than paid apps, reports App Annie and IDC.

However this varies depending on which market you look at, the US remains leader in app-related revenue, be that freemium or paid.

This means developers need to consider which market they are entering before the decide on a strategy to monetise their software.

Karsten Weide, program VP of digital media and entertainment at IDC, said: “Unsurprisingly, the United States and Japan lead the way in mobile app monetisation, with revenue growth occurring across several countries.

“However most device growth will come from emerging markets moving forward, which significantly influences the app monetisation profile aggregation.”

Mobile games giant, Kabam chatted to ME back in January, telling us about the potency of its own freemium formula.