Flurry which offers their app analytics service for free concluded that since customers are not willing to pay for apps/contents, free apps with ads are the winners as per as monetizing your development efforts goes. I see couple of problems with this theory.
- “While consumers may not like in-app advertising, their behavior makes it clear that they are willing to accept it in exchange for free content, just as we have in radio, TV and online for decades” Really? Some free to air channels are fine but what about cable TV and paid radio channels like SiriusXM?
- Monetizing your development efforts is challenging no doubt. Free apps with ads trumps in-app purchases is true probably only when app is in the top chart on more than one app store and or you have funding available to wait long enough for return on investment. Quick glance at top chart in app store confirms this theory. Generalizing the win of free apps with ads is same as chart you see in the article about average price / app. With million+ apps, and billion+ downloads “Average” price per app even by weighted monthly average has no meaning. Just because more developers are making their apps free does not mean that they figured out way to make money and we all need to follow that.