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19.09.13

Rockin’ in the freemium world

In our last blog, we touched on the various revenue streams available to app developers with the Freemium model providing a more progressive option for developers looking outside the paid for and ad-supported routes. Of course, the Freemium model won’t suit every developer as it depends on the app being created but recent research from technology analyst Gartner suggests that Freemium and the in-app purchase (IAP) model will dominate the app world over the next four years.

Gartner predicts global app revenue will reach $26 billion by the end of 2013 with IAP accounting for 17% or $4.42 billion of revenues. However Gartner forecast that by 2017, IAP will command a 48% slice of revenues. If Gartner’s predictions are on the money it indicates that IAP and Freemium will be a sustainable revenue model for app developers. However this route will only pay dividends if the app is of high quality and compelling enough to persuade users to part with the cash.

On the flip side in-app advertising will rake in $1.85 billion in revenue in 2013 but will become less relevant over the next four years with the ratio of free apps using advertising predicted to fall from 88% to 86% by 2017.

Gartner’s research also suggests that 103 billion mobile apps will be downloaded this year, 91% of which will be free. This proportion is expected to rise to 94.5% by 2017 showing that paid for apps isn’t a popular model for app developers.

Although the revenue figures suggest the apps world is a vertible gold mine, the reality is different. Unless the developer’s app reaches the app store charts and gains prime visibility, generating download numbers, IAP and in turn revenue is difficult. Here at MagicSolver, we offer promotional services to boost your apps chances, cutting through the app store noise and contributing to securing future revenues.

If you want to take advantage of our service send us an email to info@magicsolver.com or contact your account manager.

Article source: TechCrunch

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