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How Premium Apps Survive in Freemium World

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How many apps do you have on your phone? Do you keep track of which ones you pay for and why you pay for them? Maybe you don’t pay for many apps. That’s the norm, given; that many of the apps in the marketplace today are free to install. So how do apps make money?

Since many apps on the App Store and Google Play rely on in-app purchases and subscription revenue to support the free installation, does it make sense for marketers to even focus on premium apps? What drives people to download a premium app, and how does this compete against “freemium” ones?

CleverTap conducted a study on over 3,900 premium apps on Apple’s App Store and Google Play. They analyzed the study’s price point, rating, size, and category of paid apps. Additionally, CleverTap was able to conclude how ratings and app size compare to free apps.

What were some of the findings?

The popular price trend for apps has never surpassed the $9.99 price point, although a couple of apps beyond this price tag do exist. The study found that 86% of premium apps and 76% in Google Play cost less than $5.

Mobile AppsWhat’s the most popular category for premium apps? More than 44% of premium apps on the App Store and Google Play are games. To add on, 76% as well as 78% of premium apps hold a four-star rating or above in the App Store and Google Play, respectively.

For storage stats, the average size of paid apps is 265 MB. Compared to free apps, this number comes down to 147 MB. In the era of big data, it’s vital to keep track of how much storage your app should take up.

If you’re looking for excellent ways to craft your premium app strategy, remember these fundamentals:

  • Aim for high-quality apps; you need to maintain a rating at least above four stars
  • Keep your app size below 200 MB, don’t drive your prospects to delete your app for space in the future
  • Test price points for your app between $0.99 and $4.99

CleverTap best summarizes the results from this study for you to refer. Study their findings in the infographic below to build a successful premium app strategy.

Infographic by CleverTap

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