The overwhelming mobile user preference for free content is without contention. However, the question that remains is whether that trend is holding, or if more users are becoming willing to pay for apps. As contradictory as it may sound, the answer to both of these questions is yes.
As data from a recent eMarketer report reveals, there are an increasing number of mobile users who are willing to pay for an app install. Their growth is overshadowed, however, by the growing number of users who install only free apps. At a basic level, we see that both the number of people installing free and paid apps are on the rise:
Coupling this data with the number of total mobile phone users, it’s also evident that the share of mobile users installing free apps continues to rise:
However, the same cannot be said for the share of mobile users installing paid apps, which has declined slightly since 2014 and is expected to continue to decline through 2020. Examining the data another way, we see that the share of total app installers — as opposed to total smartphone users — who are willing to pay for an app is declining at a slightly faster rate:
In short, while there is a growing opportunity for driving installs of paid apps, that growth is slower than overall app install market growth. Mobile publishers seeking to monetize their users are still best served by leveraging in-app purchases and ad integrations than locking their entire app behind a paid download.
Join the Conversation
What percentage of your apps are paid, and are your user acquisition efforts for these apps different than your free apps? Tweet your thoughts to @AdColony. For the latest AdColony mobile news and updates, follow @AdColony on Twitter, like us on Facebook, or connect on Linkedin.
- Rewarding to Engage: New Mobile User Survey Results Now Available - March 28, 2018
- Mobile Monday: Mixed Reality Promotion, Seriously Connected Fans, & FCC Acceleration - March 26, 2018
- Mobile Monday: GDC 2018 - March 19, 2018
