Creating Freemium Mobile Apps – The Hot Trend You Can Capitalize Upon
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It is very likely that you may not know “what are freemium mobile apps?” if you are new or less exposed to the mobile app space. But just in case you do, then you can skip to read the “What” part and directly jump to the “Why” section.
What are freemium mobile apps?
As apparent “freemium” is the combination of the words “free” and “premium”. A freemium mobile application is the mobile software that you (as app publisher or seller) can offer to users for free of charge with limited feature-set and an option to unlock the additional or advanced feature(s), or function(s) via In-App Purchase (IAP).
Such additional features may include power-ups, boosts, restricted levels, special characters, virtual money, etc.
But why are we talking about freemium mobile apps today? Well, for a few reasons which are as follows:
Free mobile apps currently constitute 60% and 80% of the total available apps in Apple’s App Store and Google Play, respectively, as disclosed by Brian Blau, research director at Gartner.
Free mobile applications will also account for 91% of total downloads in the current year increasing to 94% in 2016.
IAP will drive 17% of the store revenue in the current year and elevate to 48% in 2017. Also, with downloads, IAP is expected to have strong growth this year as well as in the subsequent year (i.e. 2014).
Even Juniper Research has the same take confirming IAP being the greatest driver of the consumer spend on Apps, which is going to be $75 billion by 2017.
Now freemium mobile apps can be coded for any category (i.e. education, entertainment, etc.) but if you (as app entrepreneur, publisher, seller or developer) really want to make the most of the big opportunity then Juniper Research has the key takeaway to offer. The leading analyst firm predicts Games (the most popular category) will attract the greatest share of the consumer spend, taking 32% of the total revenues in 2017.