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In-app purchases from free apps accounted for over 98% of the revenue generated by Google Play in 2013

Google Play App ChartA research conducted by Distimo has revealed that in-app purchases by free apps accounted for over 98% of the revenue generated by the Google Play Store in 2013. This goes to show that even if apps are launched for free, they tend to make a lot more money than paid apps, explaining the enormous success of the “freemium” model. Several apps and games have the ability to lure you in with the promise of being free, but then with your credit card information attached, you won’t mind spending a few bucks on the game merely for the sake of continuity. The remaining 2% of the revenue generated by the Android app hub came from paid apps and paid apps with in-app purchases (mostly games).

This could prove to be a nice lesson for many Android developers out there who look to make the best of the freemium model and lure fans into generating revenue for their apps via in-app purchases. This is a trend followed by the iOS AppStore as well, so it doesn’t come as a surprise when the Google Play Store gets the same result, especially considering the sheer amount of free apps available.

Source: Distimo

Via: Next Power Up