Free applications versus paid applications
When you have an application page and you create it for the purpose of making money, you have some options. You can create a program, sell it at a fixed price at one of the many app stores, or you can create a free program with ads that make you money every time one of your customers uses the application and sees the ads. When these two options are analyzed, it is quite difficult to know immediately which of them will give the most money. If you choose paid applications, you may lose potential revenue from the repeated long-term use of your applications. However, if you choose free applications, you may end up losing an initial outbreak of capital from the initial sale of each application. There is only one way to know if free or paid applications are better for your business and to see how most people use the applications and which advertisers are willing to pay for the ads.
So how do most applications use? Pinch Media has made a study on this topic and discovered some useful data. According to his research, the average free application is used 6.6 times more than his paid counterpart. Although this sounds like a solid reason to search for a free application that sells ad space, the math doesn't work that way. Here's why. Let's say our paid app sells to 99 cents. In that case, Apple will take its 30%, which will give us a net profit of approx. 70 cents a. Sales. The free application must compensate for the difference of 70 cents per download through advertising to make it as good as the cheapest payment application.
Pinch Media says the average application runs 12 times. When an application is free, this number is multiplied by factor 6.6 to give a total average use of approx. 80 sessions. Now the answer to the next question is whether it is a good idea to make a paid application or a free application. Can a free application earn 70 cents in advertising revenue in 80 sessions in use?
Greg Yardley, CEO of Pinch Media, says with confidence that "Hell No" is the answer to this question in his research presentation. The only way a free application can generate this type of money is to get $ 8.75 for every thousand advertising visits (known as CPM in the business). Here's the logic. Your application can only show one or two ads in each session. If your application can publish an ad per. Session and it is used 80 times, you get 80 views. With $ 8.75 per Thousands of views have earned you 70 cents.
Of course, no advertiser in his real mind will offer such a large fee for developing applications for smartphones, especially one that just enters the scene. Most companies offer $ .50 to $ 2.00 for every thousand visits. This is at least four times less than what your application must make up for seventy cents.
After all, Pinch Media concludes that the best plan for any application is to launch it as a paid application, install software to determine how it is used, and then proceed. The company says less than 5% of the more efficient applications are "sticky" enough to make money from ads. What could be a good example of a sticky application? Well, Pandora keeps people listening with inverted ears and used again and again. With a price of $ .5 to $ 2.00 per thousand visits, Pandora can keep its operation running only through the volume of the user's view.
To make money with advertising, your application must make a lot of money for advertising (CPM) or exceed the relatively low usage rate of the average smartphone application. Since everyone begins with zero information on their application usage and most advertisers are not willing to offer very high CPM rates, the most cautious decision is to convert their application into a paid application. If you have more questions about your new application site and if it is a good idea to do it for free, Application: One of the leading iPhone application development companies has a team of marketing consultants to guide you in the right direction. We help you use the analytical tools that will give you the information you need. Here is the success of your new application!
So how do most applications use? Pinch Media has made a study on this topic and discovered some useful data. According to his research, the average free application is used 6.6 times more than his paid counterpart. Although this sounds like a solid reason to search for a free application that sells ad space, the math doesn't work that way. Here's why. Let's say our paid app sells to 99 cents. In that case, Apple will take its 30%, which will give us a net profit of approx. 70 cents a. Sales. The free application must compensate for the difference of 70 cents per download through advertising to make it as good as the cheapest payment application.
Pinch Media says the average application runs 12 times. When an application is free, this number is multiplied by factor 6.6 to give a total average use of approx. 80 sessions. Now the answer to the next question is whether it is a good idea to make a paid application or a free application. Can a free application earn 70 cents in advertising revenue in 80 sessions in use?
Greg Yardley, CEO of Pinch Media, says with confidence that "Hell No" is the answer to this question in his research presentation. The only way a free application can generate this type of money is to get $ 8.75 for every thousand advertising visits (known as CPM in the business). Here's the logic. Your application can only show one or two ads in each session. If your application can publish an ad per. Session and it is used 80 times, you get 80 views. With $ 8.75 per Thousands of views have earned you 70 cents.
Of course, no advertiser in his real mind will offer such a large fee for developing applications for smartphones, especially one that just enters the scene. Most companies offer $ .50 to $ 2.00 for every thousand visits. This is at least four times less than what your application must make up for seventy cents.
After all, Pinch Media concludes that the best plan for any application is to launch it as a paid application, install software to determine how it is used, and then proceed. The company says less than 5% of the more efficient applications are "sticky" enough to make money from ads. What could be a good example of a sticky application? Well, Pandora keeps people listening with inverted ears and used again and again. With a price of $ .5 to $ 2.00 per thousand visits, Pandora can keep its operation running only through the volume of the user's view.
To make money with advertising, your application must make a lot of money for advertising (CPM) or exceed the relatively low usage rate of the average smartphone application. Since everyone begins with zero information on their application usage and most advertisers are not willing to offer very high CPM rates, the most cautious decision is to convert their application into a paid application. If you have more questions about your new application site and if it is a good idea to do it for free, Application: One of the leading iPhone application development companies has a team of marketing consultants to guide you in the right direction. We help you use the analytical tools that will give you the information you need. Here is the success of your new application!
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