The History of App Pricing And Why Most Of The Apps Are Free

The History of App Pricing And Why Most Of The Apps Are Free:

In this post i am exploring revealed preference for free content over content free of ads by examining four years worth of pricing information for the nearly 350,000 apps.

Many consumer surveys point to an important point that most people hate seeing ads on smartphones and tablets.
But the actual truth is contrary to the desire for an ad-free experience, when faced with the choice between free apps with ads.
In many cases, apps are available in two types:
Free (with ads) and Paid (with no ads).
Even when a specific app does not come in paid and free versions, there are often other apps to choose from, free and paid, that perform very similar tasks like calling a taxi or looking up recipes.

But Flurry says purchase habits show that user demand is higher for apps that will cost them nothing, even if there are ads as a result.

Since 2010, when free apps accounted for 84 percent of those Flurry tracked, the percent of apps charging nothing and using ads to drive revenue instead dropped briefly to 80 percent.

As of April this year, 90 percent of all apps are free and ad-supported. As a result, the average price of an app continues to drop.

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Flurry