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When's the last time you treated yourself to a new mobile app? Okay, when's the last time you actually paid for an app? If you're like me, the answer was never. At least not until a few nights ago, when I sprang for an app called "Cholesterol Food Reference.” It lists different foods and their cholesterol content. Free apps are okay for following sports or movies, but this is a little more serious and, to me, worth the $2 asking price.
According to a recent ABI Research survey of 2,000 people, more than 70 percent opt for free or cheap apps. What keeps app makers in business are the three percent of users who account for about 20 percent of total spending on apps.
These big spenders shell out about $14 monthly, mostly on business apps or iOS games. They get hooked by the initial app, which may even be free, then end up paying for upgrades. This actually creates a loyalty between app developer and user that serves both well over time. The rest of us get what we pay for. Or don't pay for.
—Larry Greenemeier
[The above text is a transcript of this podcast.]
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5 Comments
Add CommentThe most I've spent for on an app was about $20CAN for the Audubon Guide to North American Birds. One trip to a a nature reserve with our nephew, and the app's chickadee calls attracted a ton of chickadees to respond back. Worth the money right there.
Reply | Report Abuse | Link to thisNow, THAT'S cool!! I can easily see $20CAN for a birdsong app. Can you get a Pandora for bird songs??
Reply | Report Abuse | Link to thisALL my apps are freebies, but I don't do games or music. Most of my PC software is free, too. It's amazing the good quality stuff that is available, and it does serve a purpose for the developers, in case you want to not feel guilty about it.
EVERYTHING on my home computer is freeware. I can edit pics, make movies and watch all the video programming that I can download (also for free)for nothing more than a high speed internet connection and one power strip plugged into my wall. People that pay big money aren't very willing to look, thats all.
Reply | Report Abuse | Link to this"...more than 70 percent opt for free or cheap apps."
Reply | Report Abuse | Link to thisThat is because 90% of today's computer users have no use for a computer other then entertainment and social networking. A good example is the success of the iphone. Why invest in a cell phone technology like iphone which has no data compression when a Blackberry system that does can save you time and money? The iphone is all about eye candy and free apps, which only run on a $500 dollar cell phone, with an unlimited data plan (so really, where is the savings?). Unless you are a professional using the ipone as a cloud based data bank that needs a larger screen, it's a waste of money.
When it comes to software, the real professionals are not going to design a bridge with free CAD programs. You get what you pay for even with computer software.
I've never paid for an app...doesn't mean I'm a 'freeloader'.
Reply | Report Abuse | Link to thishint...Facebook is worth 100 BILLION dollars...Google, You tube and Yahoo worth BILLIONS. Why?...because 'my' use of them brings adverstising revenue. Think TV and radio...media need users to have worth.
If anything, the app makers and media are the freeloaders who should be paying us to use apps. We generate their revenues.