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Maximizing App Revenue: Insights on Paid vs Free Mobile App Strategies

This document by Greg Marra discusses the monetization strategies in mobile app development, focusing on the trade-offs between paid and free apps. It analyzes user engagement metrics, showing that paid apps have a higher revenue per user but fewer downloads. The insights are backed by data from Pinch Media and Tech Crunch, illustrating the impact of pricing strategies on user acquisition and monetization. The findings suggest that leveraging free downloads with ads can lead to significant user growth, while paid apps may yield higher per-download revenues.

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Maximizing App Revenue: Insights on Paid vs Free Mobile App Strategies

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  1. Dollars or Eyeballs Greg Marra March 25th, 2009 Olin College Mobile Phone App Development

  2. Paid Free

  3. Ratios Paid Free Unique Users 1 7.5 Times Used 1 6.6 Time Spent 1 3.9 Pinch Media

  4. Making Money Paid Sales Driven Free (Ads) Runs Driven 12 runs / user $.70+ / sale 1 sale / user 6.6x users As paid app $.70 / user 80 runs / user $8.75 CPM $2 CPM (if you’re lucky) $.70 / user Pinch Media

  5. $.99 (50 downloads in 3 days) Free (10K+ downloads per day) Tech Crunch

  6. $350/mo at paid download rate. Tech Crunch

  7. Paid Free More $$$ More Users

  8. Citations • Pinch Media • http://www.slideshare.net/pinchmedia/iphone-appstore-secrets-pinch-media • Tech Crunch • http://www.techcrunch.com/2009/03/22/should-an-iphone-app-developer-charge-or-run-ads-galaxy-impact-case-study/

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